Getting rich trading stocks

To Trade Stocks are attractive to those who have money in the bank. The strategies of the world's leading equity investors can be found here.

A stock is an asset to a company. You will learn here about how you can start making money in stocks.

How to get rich in stock trading (summary)

• Traditional stock trading is done by buying stocks (shares in companies).
• Buying and selling takes place through an online broker.
• Trades are conducted through a stock exchange, such as NYSE.
• Trading takes place via an online broker, choose your broker wisely.
• Trading involves various degrees of risk.
• This article will show you how to succeed in trading stocks.

How to buy and sell stocks

To buy and sell stocks, it is necessary to trade through a broker. Today it is by far most common to use an online broker (the time where you had to trade stocks through a broker over the phone are long past).

There are many online brokers on the market. What you should look at is primarily price, trade opportunities, and how good the online trading platform.

Basics of Trading

Stock trading starts with a purchase. You pay a certain sum of money in exchange for a specified number of shares. Suppose we had a company that was on the stock exchange. We sold our shares of NOK 10 per share. If you buy shares for 1 million hast thou 100.000 shares in the company.

The company went very well. Shareholders appreciated a good annual growth and an impressive operating profit of the company. Several investors wanted to sell, and no shareholders wanted to sell 10 per share anymore. Some shareholders were willing to sell, but then only if they got 20 per share.

How to earn money on stocks

One of the main principles of stock trading is to minimize loss and maximize gain. The times you're wrong, so do your best to ensure that this error is minor impact on your wallet. The times you're right, you have to join up as long as possible, but do not be greedy.

Stock market is strange. Here are some key observations:

• Not everything that goes up, comes down. Did you buy shares of Microsoft 25 years ago, or Google for 10 years, you will probably never see the stock value comes down to that level again. Some stocks it pays simply to sell before you plan to spend the money.
• Not everything that goes down, comes back up. Never insist on a stock because you think it should come up. Just as some successes continues upward year after year after year, there are companies that are struggling, and coming down, and further down, until they reach the bottom - and the company is bankrupt. You lose your entire investment.

Everyone can not be rich in stocks

Many are well optimistic about the stock market. We must remember that it is not easy to get rich in stocks. It is never easy to be rich. If it had been so easy to be rich, then everyone would have been rich people.

If everyone had been rich, who would then be washed shithouse at your job? Right. You can not. Everyone can not be rich, and not everyone can get, it is scarce, and scarce is often sought after. Being rich is sought after, and make a lot of money is something everyone (?) Want.

Stock trading can be rich, provided the following criteria:

To get rich on stocks you need capital, and you have to invest money in a profitable way. In order to profit you need to buy cheap and sell for a profit. Not every time, but it must be such that profits are far better than losses and expenses.

Stocks and risk

Stock trading is risky. Always ask yourself whether the investment is worth the risk.

Can earn 10,000 in 2 minutes by investing 1 million, would you do it if there was a possibility that you got a loss of 100,000 or more? Probably not. The gain must be proportionate to the risk

Watch those broker fees!

Beware the brokerage with online brokersBrokerage fee is a power broker deals with buying and selling of shares.

Many online brokers have pretty high commissions. Do not be fooled by this seemingly low fees.

When trading stocks for several thousand dollars, an amount of less than 0,5% is seemingly modest. But even if you buy shares worth several hundreds of thousands, this amount will be significant in the long run.

Minimum brokerage fee applies namely only to a certain limit, and for larger amounts will often have to pay a percentage of the purchase and sale price. It increases the cost of the trading significantly.

It pays in other words, to avoid the commission if this is possible. Most online brokers have unfortunately both brokerage and some other charges as well.

Options to stock trading

Stocks are a way for you to make money by spending money you already have. You can be rich or ruined. So it is with all investment and trading.

Savings Bank is a real alternative to stock trading. Let the money be in the bank, you get some interest on it. In insecure times, bank savings make more sense than share savings, especially for those who do not have a good understanding of the stock market. Unfortunately resulting in taxation of interest and inflation, the real return on bank savings is approximately zero.

Forex (or forex trading) is an exciting alternative to shares. Instead of buying shares, you buy currencies (or switch from one to the other currency, if such an explanation helps). Simple to understand, difficult to master. There are good opportunities to become filthy rich in the currency of that master it. Learn more about currency trading.

Commodity Trading is also a good alternative to stock trading. Buy derivatives of raw materials. The same applies as with stocks, you buy cheap and sell at a profit. Popular commodity to invest in the oil, gold, and silver. We have written an article on commodity trading.