Saturday, August 14, 2010

Trading style


Before you enter the world of stocks and currencies you must ask yourself what kind of trading style is for you. Do you want to be day trader, long time holder, swing trader....If you choose day trading style you must spend a lot of time in front of a computer analyzing graphs, making fundemental analysis, listening to the news,...If you have a full time job you can expect to devote all your afternoons to stock or forex markets. So you should realisticly think how much time do you have left each day.

The other part of the equation is the money  part. Dont risk your family savings with your first endeavours with the stock or forex markets. Learning takes time and it costs money. You will almost certainly loose money at the begging of you carrer so be prepare to take some loses. Dont use money that you require for living, and dont borrow money to make money in forex or stock market.

Most online trading platforms offer usage of leverage. Leverage can increase and also decrease your profits. Your mistakes will cost a lot more if you use leverage. Of course leverage looks tempting, you can earn more money quickly. Dont use leverage especially if you are a begginer. Your carrer in investing in either forex or stocks can be over very quickly.

No comments:

Post a Comment