Want to Start Trading? Here’s How to Get Started

– Contributed content –

(Pexels.com)

18 Jan. 2019. While playing the lottery is commonly seen as gambling for the poor, trading with stocks is surely gambling for the rich. The misunderstanding here is, of course, that you don’t have to be particularly rich to get started. You just have to be willing to put in the effort to educate yourself a bit first.

Buying stocks is definitely a bit different from buying a simple lottery ticket although the outcome seems to be the same; you either win some or you lose some. Before you get started, it’s a good idea to go through some of the different options first and give you a few resources in terms of what to read up on.

Here is a handful of excellent tips to get you started with trading stocks and becoming a part of the ever-buzzing market.

First: Active or passive?

If you have ever discussed stock with someone before, you might have encountered two types of people: those who swear to only trading actively and those who would rather play it safe. First of all, it’s good to know that trading stocks actively simply means that you’re selling and buying according to a plan of your own, or that of your stock fund, rather than just following where the market is heading.

You could make a bit more, in other words, but you could also lose a bit more. Stock market experts have, in fact, concluded that those who stick to a long-term plan of trading stocks passively will make more money than those who trade actively, though, but whether or not you believe this is up to you.

Another point to this is that the more you know about trading stocks, the more you might be able to make by trading actively. Read up on everything, in other words, and consider doing a combination of both; keep you big savings in a passive index fund and reserve a part to gamble with actively.

If you choose to trace actively, it’s a good idea to have a plan in mind and always sticking with it. If you’ve told the system to sell after a 6% increase, in other words, this is what you should do.

Next: Are there other investment options?

Sure, being an active or passive trader on the stock market is definitely as basic as it gets. It’s still important to know about, however, and especially if you’re brand new to the market – but when you have mastered this, you can graduate to other investment options as well.

There are real estate investments, for example, and not just those where you need to save up for half a lifetime before you’re able to buy a place of your own. Become a part of the market as soon as possible instead by reading up on this commercial property investment advice. It’s a great way to get a foot into the real estate market and take advantage of the increase in prices.

And, if the prices should drop, you can always run over to the bank and take up a loan so that you can invest in an actual place. It’s a win-win situation, in other words, and it might help you to grow your fortune a bit faster.

Editor’s note: The opinions in this post are the contributor’s and not those of Science & Enterprise. Readers are encouraged to consult their personal financial advisors for guidance on appropriate investments.

*     *     *