If you’ve been watching the stock market and investing for any length of time, you know that trading is one of the best ways to make money. It’s also one of the most challenging ways to make money, because changes in the market occur almost daily, and successful investors follow different trading strategies and techniques to make the most out of every trade.
If you’re looking to start trading but don’t know where to begin, this guide by Paul Zogala, who works as a Trader at Murchinson, can help. It breaks down everything from how markets work to why you should buy specific stocks. With all that information at your fingertips, you’ll be well on your way to becoming a master trader — and making money from your investments like never before.
What is Trading?
Paul Zogala explains that trading is the use of one or more financial markets to purchase and sell commodities and/or currencies. The trading of financial assets such as stocks, futures, bonds, commodities, and derivatives is called investing. The trading of commodities such as food, medicine, raw materials, and financial assets is called trading commodities.
Why Does Trading Work?
Most people have heard of investing to make money, but do you know why investing works? Because it does! Investing works because you want to make sure you get something in return for the money you put into it. That something can be stocks that gain, commodities that rise in value, or more stocks and commodities that fall in value. From buying to selling, trading is a process of making decisions based on current market conditions and available buying and selling prices.
According to Paul Zogala trading is a simple, but powerful, way to make money. Trading is a lot like a game of chance. In the game of trading, you’re not really gambling because there’s no chance of getting “lucky”. You have only yourself to blame if you end up with a losing investment.
How to Trade
First and foremost, you’ll need to learn how the markets work. You can learn this through reading articles, watching videos, and even talking to professionals, such as Paul Zogala. It’s very important to find a trading partner who is at least as interested in learning as you are. You’ll make yourself more likely to succeed by working together and sharing your excitement about what you’re learning. You can also find information about trading on the internet. There are lots of websites that feature blogs and articles about trading, as well as forums for learning and sharing information about trading.
How to Trade Stocks
If you want to begin trading stocks, you’ll need to find a trading platform. Paul Zogala shares that there are many different types of trading platforms, but the most common ones are online, web-based, and mobile. You’ll also need to find a broker that lets you trade stocks. Brokers are companies that help you buy and sell stocks. You’ll use brokers that specialize in trading stocks as your go-to when you want to buy and sell stocks.
Once you’ve found a broker, you’ll need to decide on a broker trading strategy. There are lots of different broker trading strategies, but the most common ones are buy-and-hold, buy-able-now, and sell-and-hold.
With all this information by Paul Zogala at your fingertips, you’ll be well on your path to becoming a master trader — and making money from your investments like never before. For more information on trading, follow this professional on Twitter.