Stock broking is big money. We’ve all seen Wall Street. Greed is good, so the quote goes. Stock broking is about greed though. It’s a complex combination of math and gambling.
Anybody who’s taken even a passing glance into a book on stocks will know it isn’t easy. You don’t just press a button and earn money. If that were the case, everybody would be doing it.
Stock broking can look complicated on the surface, but there are four key rules to succeeding from outside the finance industry.
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Pick a Market
Thought stock broking was all about buying a selling shares? Nope. There are markets way beyond that.
The futures market for example where you can speculate on a commodity if its market outlook is uncertain. Currency markets are also a popular option, and have been known to be lucrative at times.
Doing Your Research
Stock broking is all about the markets. You keep an eye on the markets, and you make money. You ignore them, and you’re going in blind.
Don’t think you can guess your way to success. Keeping an eye on the whole market at once is impossible. Instead it is best to identify a single market and watch relevant figures from there.
Do you want to do your stock brokering around the finance industry? Say a bank for example.
You’d have to watch both their competitors and ongoing developments in the sector. Fines and levies for example. This can impact stock price. Remember, buy low and sell high.
Pick a Platform
Not only do platforms provide an easy interface for usage, but detailed information and training for succeeding.
More importantly, a lot of broker platforms are mobile too. If you have a regular day job alongside the markets, you can trade on the go.
Of course, best not to be trading when you’re meant to be working. You might end up trading full time if you annoy your boss enough.
Don’t Be Greedy
This is very important. Stock broking is about risk and reward. That said, do not allow yourself to go mad with power after a significantly profitable trade.
Stock broking is about winning. Gambling away your earnings to try and multiply them isn’t wise.
I know it can be hard to say no to a chance to make even more money. If you’re dead set on it I can’t stop you.
Part of being a broker is as much knowing when not to invest as it is knowing when to invest. Be smart with your decisions. Make sure your time is not wasted.
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Stock broking is time consuming. It’s also risky. The rewards and benefits of success are well worth the time and effort though.
If you put in the time and dedicate yourself to knowing the market, you can hardly go wrong.