Day Trading on the stock exchange and FOREX (foreign exchange) Trading are becoming increasingly popular ways to make
money. But they are also one of the riskiest ways to make (and therefore lose) money.
Now, I don’t profess
to be an expert in this subject I’m certainly not going to cover all there is to know about day and forex trading on
one webpage, other than how it works and the pros and cons of this method of making money. What is day
Day trading, as the name implies, is trading on the stock exchange on a daily basis to take advantage
of the fluctuations of gains and losses on stocks that occur on a daily basis, compared with long term stock investing where
an average gain in the long term is expected.
For example, a stock may open the trading day at $0.60 and close
at $0.66 – this may only sound like a small increase, but it is 10% of the share value. So, if you bought 10,000 shares
in the morning for $0.60 per share (for $6,000) and sold them again at close for $0.66 per share (ie $6,600) you would have
made $600 profit for the day! [not taking into account brokerage fees].
Sounds good I know, so what’s the
down side? RISK of course!
Share prices can also drop in value on a daily basis, so you still need to carefully
research your stocks and buy and sell wisely. By watching the stock exchange during the day, you can quickly get an idea of
which stocks perform best and how they typically perform throughout the course of a day.
What is FOREX?
FOREX (foreign exchange) involves purchasing other currencies and again relying on the fluctuations in foreign exchange value
to make a profit.
For example, if the Australian Dollar is worth US$0.60 today, but increases to US$0.66 in the
following week, again a 10% profit can be made.
Again though there is a risk that the exchange rate may
actually plummet – which it did recently – so careful research is required. Or try trading Gold & Forex With One System! Gold Trade Pro Is A Highly Successful Gold Trading System From A Professional Gold Trader. Now Upgraded To Include SaneFX Forex. Members
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