You’ve heard the story about the stock market being volatile but, in reality, it’s really unpredictable. I had a few friends tell me this and, while I can’t prove it, it’s very likely true.
A recent article in Forbes revealed that nearly half of the millionaires in the U.S. made a killing trading stocks in 2014. In fact, it was estimated that there were up to 9,000 millionaires that made more than $10 million in 2015.
And, according to the Wall Street Journal, more millionaires are using the financial system than ever before.
Is it possible to trade stocks profitably?
It’s not possible.
If you’ve ever bought a stock, you know that it doesn’t always go up. When the markets go up, stocks go down. Conversely, if stocks go down, the stocks go up. So, if your stocks get into a downturn, all you’re left with are the short-term trades you’ve made on the dips.
And, even if you do the long term trades, you’re still making some losses. The problem with holding a stock is that it’s never guaranteed to go up. It’s also not guaranteed to go down. When you buy a stock at a good price, you might be able to get a few good returns for the cash you’d spend on the stock. But, that good return may be wiped out by a bad trade. And, as you might expect, the longer the stock’s in the market, the greater the risk. Some investors make a ton of money trading stock, yet still lose more than most people ever will.
How much does it cost to trade a stock with a professional?
Most professional traders are not making $300,000 in a single month. And, while trading stock is a great way to make a few bucks on the side, it’s not a career for most folks.
Professional traders usually trade in a variety of investments. Some specialize in stocks and some trade commodities like gold futures. But, their goal is to make money. As you might expect, trades can range from pennies in the dollar to $400 or more.
Should you buy stocks with a broker?
The number one reason brokers keep their clients from picking stocks in the brokerage house is their lack of knowledge and experience. And, in turn, their lack of understanding of what trading stock means.
Many brokers have a very, very low turnover
swing trading roi, swing trading indicators forex pdf, swing trading tutorial pdf free, accumulation swing index trading system, swing trading vs day trading which is more profitable woolly mammoth