Tuesday, March 22, 2011

Why You Shouldn’t Get Into Stock Trading

Dear fellow traders,

Indeed, one of the most growing industries in the past few decades is stock trading.

This is because trillions of income can be generated in one day through hundreds or even thousands of trading transactions that come in different parts of the country and now, the world, made possible through fast Internet access.

In fact — due to its viability — more and more people are getting into it because they see how flexible the trading schedule could be, how easy to get access to stock trading, the efficiency of the means and ways that stock trading can be transported, the no or low minimum of costs and accounts, and its capability to always move.

If you want to get into stock trading, the 1st thing that you need to do is to conduct some research. This research should include :
(1) what stock trading is,
(2) what are the basic things that you need to know in order to get started with it, and
(3) what do you need to do in order to be successful in it.

You can conduct your research by searching for websites that offer information on it. These include Yahoo! Finance, Google Finance, Marketwatch.com, MSN Money etc.

Today, with just one click, thousands of information could appear right in front of you. For you to save time, it would be best if you are very specific on what you are looking for. If you know what the exact terms that you are looking for, it would be easier for you to find the information you need regarding stock trading.

For a list of trading or finance related terms, visit :
http://www.investopedia.com/dictionary/

But, despite all these advantages, there are also reasons that you need to consider why you Should Not get into stock if given another option or business opportunity.

Experts say that people should not be very impulsive in getting into stock trading without really gathering their facts straight. This is because the investment involved in stock trading is not a joke. And once you lose a lot of money of investment, it will be hard to recover in that same industry.

If you have another business option that you think that you will succeed in, it will be best to try it first because stock trading can break your heart and your pocket once you get started the wrong way.

Experts say that people should not get into stock trading because :

There Is No Exchange System Available.
This is one the greatest risks that people who get into stock trading must face. Since it is a free flowing market with no definite time of operations, one can never be sure if they can close a transaction or not. If you are not comfortable with the idea that your business has no regulated mechanism, then don’t invest on it in the first place.

It Can Be Quite Complicated.
Compared to other markets, the nature of stock trading is much more complicated and harder to understand. Since it is quite different in terms of the approaches and techniques being used, some people easily get tired of getting the hang of it. Because of its complicated nature, it takes years for some traders to understand all the things that they need to understand about the process. Some may even refer to trading as an art.

It Has 2 Sides To Every Position.
Although it is the nature of a market to have more than one side position, the two-side position of stock trading can be confusing to most people. This is because the currencies that are being dealt with change rapidly and fluctuates unexpectedly compared to other markets.

But to me, I believe if you follow a good trading system and practise good money management, you have at least started off in the correct footing in your stock or option trading journey. Then, you would persevere and keep learning hands-on from your trading experiences to become better and better in your trading.

Yours Truly,

Tony Chai

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