Today people are bombarded with lucrative offers of various companies commercial offering $10, $7 or even $4 by trade of actions. It looks at very trying to be registered and start to trade since the limits are well better than it was before the trade of Internet was possible. They was the good news.
The bad news is that these companies sell the tools to you and only maintain it. They do not sell any guarantee of success to you. It does not import if you profit or lose money, the company commercial will obtain its fees for each trade in any event.
Since you plan to enter the stock market, most probably you envisage to obtain a significant return on your investment which should also be better than you would obtain with purchase investing your money in the investment funds mutuality (less risky than simple stocks) or even the banking extract of no-risk (Cds) where returns are guaranteed.
Well, how can you obtain such returns? The answer naturally is simple and well-known: buy bottom, high sale. If you generally done it you will be a successful operator out of purse. Maintaining the first problem comes: how can you when buy? There are probably several manners of doing that, we do not discuss this here, leave suppose to us that you know way or of other or think that you know. Let say to you obtained lucky and the actions after you bought them go up, just as you envisage.
Maintaining another problem comes: when to be sold? After the actions are to the top of 20%, that do you make? Sell now, or wait until it has place to the top of 50%, of 100% or 200%? You listen to news of investor and made what everyone made differently: while being sold, while buying more, or continue to keep stock? If you choose one of the first two options, which quantity of actions which should buy to you or to be sold? Or if you keep stock, be you sour that it will continue to go up, or you can finish to the top waiting until the stock exchange of actions is again with the original and which lose is value having for result your losses.
The truth is certain really generally knows the answers to these questions and carries out really the benefit. Is question, you east as good as these people? The majority of the people lose money guessing and trying to time the market. If you are new in this play and planning to spend much hour on research, the chances are you will lose. You will compete with the professional tradesmen, the large players and the initiates who profit most of the time because many others continue the loss. Positive what are the chances that you can envisage the market? It is probable very thin.
Some can discuss: I had these actions, I sold them when they were to the top of 20%, but if I did not sell it at this moment, now they would be to the top of 300%. As I stupid was when I sold it, if I did not make I had gained much money. I must still do this. It really there shows that I can earn much money and it is easy! It is right which you can gain much of money, but it is not only very easy that it looks at. Let assume you did not sell the actions when they were to the top of 20%. Whereas you incites to think you would wait until it is to the top of 300%? You could have sold it when it was to the top only of 25%. Or it can descend several times below the increase of 20%, you could have thought that it went down for always and have sold him even with a benefit more humbly than of 20%.
The result is that it is easy to look at the past and to see all the errors which you made. However it is very difficult to make good things in the future. Unless you know market trends well, include/understand relative industries and of finances of joint stock company, most probably you will not be able to make the advantageous trade. Even the professional tradesmen make errors and lose money. If you are not one of them or not envisaging to become one, your best bet would invest in Cd, investment funds mutuality or your own businesses.
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