Stock  Trading Information

Stock trading can be an interesting and lucrative method of work from home or mobile living to increase income over time. Many people view stock trading as a "gamble" or "too complex" to do and really it's not that hard or complex if one just uses a bit of common sense and takes time to learn a bit and start small. No one rides a bicycle or drives a car full speed at first and first time they get use one. But after learning and trying slowly one can be a very good driver.

Think of it this way - suppose you buy "stock" and open a normal store on the street - that's a gamble, you don't know if there are customers, if the stock will sell, if you paid too much or even if a customer will come in. Look at stock trading as a similar, it's a business... except your "stock" is numbers on a paper and your customers are unlimited but you never see them and all sales are online. All you have to do is decide what is profitable to buy at the best price and then put it on the shelf so to speak for a higher price and wait for a buyer. It's similar to an auction sale - people buy items for the best price and then sell them to others or at a different auction for more. Now compare that to "gambling" once your money is in a machine or on a bet - it either wins or is all gone... no choice at all. That's gambling ! With stock or trade - you do have a choice - you don't have to buy at the wrong price and you also don't have to sell and you can also decide to sell and limit your losses and still have most of your money to try again. In gambling there is no choice - once a bet is made and it's wrong - the house keeps all of your money. Trading is no different than the risk to open a business except that you have no building to store product, no warehouse and no staff or utilities or landlord to pay rent to. The business of trading is buying and selling various invisible products and only on paper with the object being to make your profit numbers larger on each trade or to gain more stock by trading.

Trading equities has a few different forms, scalping to get a fast profit on any price change, day trading where an item changes price daily, swing trade or intraday trade where one may buy and hold an item for a few days or a week then sell and long term investing where an item is bought to hold for a long term increase in value over months or years. A trader may also have various diversified items that may fit any of the above ... some items to trade quickly, some to hold a bit and some long term items.

It also does not have to be expensive to start out now that we have self directed and commission free trading online - anyone can start with as little as a dollar and trade a few penny stocks to profit and then build from that as they get more experienced.

A very good practical way to start that is to use common sense and is like this - how much is a cup of coffee or two a week ... 5 bucks ? Each time you have income just put 5 bucks into a trade account, then use that to practice with. Over time it will build if you do that regularly or take just a dollar and deposit it for trading. Out of each paycheck you will never miss a dollar or five. What can you do with so little ? Well, you can buy 33 shares at 3 cents each for a dollar and if they rise to 4 cents and you sell - you now have a 30% increase. 33 x 3 is 99 cents .... 33 x 4 is 1.32.... now you can buy 44 shares and then you have 1.76 in money - near double. How hard is it to profit a penny - lots of penny stocks go up and down a penny daily or several times a day. But one thing is certain - you will never do it if you do not put that dollar aside and then try it .... instead that dollar or five gets spent on a coffee or something else. To earn money you have to find out how to make it work for you first.

There are a couple places in Canada now that do have commission free stock trading and trading is best done on the Toronto stock exchange TSX which has a choice of about 3000 different companies to trade. To learn more go to the Stock Trade page for details.

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