Stock trading from home
Stock trading is easier than many people think. You will definitely not be an economist or financial expert to successfully buying and selling of shares.
Shares are assets of a business. Stock trading is probably not as difficult as people think, and the goal is of course to make money.
Buying and selling stocks
Buying and selling shares of a company, or stocks, is quite simple. The easiest way to start trading is through an online broker. One of the most popular online brokers is easyMarkets, possibly because there are no trading fees and the spread is among the lowest in the industry.
The art of re-investing the profits
Want to get rich? Then re-invest most of what you make!
The task of a stock speculator is to get as high return as you possibly can on the money you put into the stock market, and at the same time minimize the risks. In other words your job is to spend money (or invest money) to make new money.
Example of buying and selling stocks
Let's say you buy 100,000 shares in DiaGenic, there is a company on the Oslo Stock Exchange. At the moment the purchase price of 0.62 million. Overall, the company is now 210 million shares in DiaGenic and you own that is 100,000 of these shares.
Hypothetically, let's say that in one year you will have sold your shares to 2.62 million. It's a great win, and you earn 1.62 per share. It gives you a profit of 162.000 million (100,000 shares x 1.62 million in earnings per share).
Various forms of stock trading
Mutual funds have become a common form of savings, but to pay expensive fees to the Trustee (which may be a bank or broker). You are not actively involved, and it is the manager who takes investment decisions. All you do is choose which fund to put money in. This option suits those who want to invest money in the stock market but do not have time even to engage in investments in shares.
Share savings is to invest in one or more companies. The investment is usually long, and you may not have plans to sell shares in the next 5 or 10 years. Maybe one so long that you never want to sell the shares, but rather that they passed down to children and grandchildren. This type of stock trading can be described as " buy and forget ". You follow what is not part of the daily share price trends.
Active trading in stocks is a stock trading terms that are more " on the ball ". You follow daily or weekly part of the performance, and did not intend to hold the stock for very long. Maybe you sell after a few weeks, a few days, or even for just a few minutes after purchase.
In stock trading, you can even limit the risk. The risk will never be as low as in bank savings, but it is a myth that trading in currencies and stocks always involves high risk. Indeed, one can minimize losses by using technical "stop -loss " that prevents you from losing a lot of money.
Daytrading is an intense form of active stock trading where you buy and sell very frequent, like tens of trades on the same day.
Sale may take place within seconds of purchase. You can buy in large volume and owning shares in just 5 seconds, wait for the price to go up by only one cent or two and then sell you.
Forex - an exciting alternative to stocks
Daytrading need not be limited to shares. You can also trade currencies and commodities and bonds. Here you can also buy and sell effectively. Read more about forex trading.