A key focus of my blog is Financial Literacy/Money. A part of being financially literate is understanding how to invest. One way to do so is ‘trading’, which some also interestingly consider to be something different than investing. If you’re interested in trading, the following contributed post is entitled, The Two Most Common Ways Of Beginner Trading.
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Many people shut themselves off from various opportunities to do something new with their life, by convincing themselves they will fail. Not only is this a self-esteem issue but it’s a lack of knowledge too. If you understand something, you’re more likely to feel comfortable doing it. More and more people are realizing that they have been lead astray by all the cultural entertainment content around and for the trading industry. Not everyone who trades stocks is some kind of wizard, that lives fast and has a very intense work schedule. Far from what you see on screen, trading is accessible and easy to understand for everyone. If were only a few people trading, then there wouldn’t be much of an economy to talk about. The great thing about modern and fluid economies is that anyone can trade whatever they want. Here are the two most common kinds of trading that all beginners should grasp first.
Penny stocks
As you can probably tell by the name of this kind of trading, you’re trading stocks of companies that are just getting off the ground. Their stock prices are in the pennies range, but not all the time. It’s just a general title that this kind of trading is given. Sometimes you have stocks that are worth several dollars so don’t think you need to bust the piggy bank of change to begin. It’s quite simple trading in fact. You buy these stocks from companies that looks promising. That’s the entire game of it all, looking for companies that look like they are going to be successful. It’s so simple that anyone can play. All that you need to do to turn over a profit is to research companies carefully, see what they provide and what is going to turn them into success stories. This could be done by visiting their website, inspecting their product line and comparing their services to rival companies. Then gradually their stock prices will rise until you turn over a massive profit.
Over and done by the day
Day trading is fast and simple. You are merely buying stocks when the trading day begins and all your positions are alleviated by the end of the day. You will hold nothing when the final bell rings at the end of the trading time, which makes day trading exciting but also easy to understand. Things like the best volume indicator for day trading can help you to understand how you should strategize. Some markets are fractal, meaning that usually there are big names and small names giving you a clear indication of where cheap and expensive stocks are. You should look into the gap risk to see what kind of hurdles you might need to jump as you begin day trading. Sometimes the risks can be sudden and high but to have drastic actions happen in the market in just one day is actually, quite predictable.
No one should be afraid of getting into trading and making some money on the side or perhaps making it your full time career. Penny stocks are those little flutters of hope that can turn out to be huge piles of cash.
