Taking part of the possibilities that trading is offering is something that more and more want to take. But the hurdle to get started can feel huge and the misconceptions and false facts that are roaming are quite abundant.
The first thing that comes into mind when one is thinking of trading is the stock market, but there are more possibilities than that. You can also trade money, yes buying and selling money is a big thing. This is called forex trading in Australia and can be managed in a few different ways, as all trading.
As always trading in any market is risky and needs to be done with money that you can lose. There are no promises that you will win or even keep the money that you have invested. But if you are skilled, lucky and have timing you can make good money without a lot of work. And if you really mean business and spend a lot of money and time you can make a living out of it, but the more you put in the more you can lose.
Brokers and marketplaces
First thing that needs to be done is to find at broker that suits how you want to trade. Do you intend to trade every day, now and then or just once and then leave it for a few years? Be honest to yourself and how much time you can spend! Do you want to take care of your own investments or do you want someone to handle them for you?
The stock market
A stock is a part ownership in a company, there are two grades of stock An A grade stock is worth one vote at the annual general meeting and a B stock is worth 1/10th of a vote, sometimes you see a C stock and they are worth 1/1000 vote. That is the technical difference, but the stock market is not all about technicalities do you wish to be an active owner or just trading? If you wish to be a successful trader look at what stock is cheaper and what stock has a higher turnover. Those two elements are key to successful trading.
Buying and selling money, or currency as it really is, is another way of having a go at making money at the trading business. If you travel abroad and exchange cash this is what you actually are doing without thinking of it. Maybe you have had some cash left on return and have exchanged them back? Well there you are, you have bought and sold currency. Maybe you remember if you got a better rate on return or not? Hopefully you made a few bucks on you trip, maybe you lost some.
Believing in countries
When trading in currency you don’t just work with one currency and then back to dollars. You can buy when you believe in a strong economy for a certain country and sell when you think that something is going to make the currency rate towards another countries currency will drop.