Do You Have The Temperament For Stock Market Trading?
There are different priorities in the world of stock market trading when compared to normal investment. It is actually quite easy - though not always recommended - to be an investor who buys and forgets. It would be quite easy to purchase stock in a global giant, never look at the price and simply keep banking the dividends. This is not the wisest of choices, but it is easy to imagine that many people do exactly this.
In contrast, when stock market trading, there has to be much more focus and action. A purchase is made only when it is believed that a profit can be made - and an acceptable profit at that - in a relatively short time period. This might mean that the target is to buy, make money and sell all within a few weeks, possibly within an even shorter time frame.
Since your authors are longer term investors by nature, the idea of 'day trading' is one that fills us with horror! Trying to decide what to buy, at what price to buy, when and at what price to sell at, calculating potential tax liabilities and fees - and doing this every day - seems to us to be a little like having attention deficit disorder for investors. We would not wish to deal with the stress of such a lifestyle.
But lots of people do this and enjoy the freedom it offers. At least it is freedom from a boss or employer, if not from the pc and trading software.
This means that the very first decision about stock market trading has to come from within you. What are your goals and tolerances? Could you handle the pressure and stress of day trading? Or would you rather take a little more time over your decisions?
How much capital do you have to start with? Are you hoping that trading will become your full time profession, or just an intellectually stimulating and hopefully profitable hobby?
Then of course, there are many other questions to answer. Do you have specific knowledge that can help your trading? Are you an expert (or do you want to be) in an area of the stock market?
There is no right or wrong answer here - it can only be answered by the individual - YOU.
Over the coming pages, we hope that we can help your decision making skills and ease you into trading by enabling you to start in the right place.
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To read more about stock market trading, please visit:
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A Beginners Guide To Stock Trading
How To Trade Penny Stock
How To Get Affordable Stock Trading Training
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Could Stock Trading Platforms Help You Make Extra Profits?
Should Private Investors Be Using Stock Trading Platforms?
Stock Trading For Dummies
How To Get A Stock Trading Education
Can Virtual Stock Trading Help You?
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