INTRO TO TRADING STOCKS

• Some of you may have heard about different types of trading: short term swing trading, day trading, position trading but in simple terms, trading is all about buying assets and selling them at higher value but there are misconceptions when it comes to trading. 

• A lot of people seem to think that with trading you will become incredibly rich very quickly but that is not the case for a wide majority at all. Any type of trading has its risks that deter people from wanting to enter the market but it also has many potential rewards if you know exactly how to sell and buy assets at the right time in the right moment. 

• Even with a full knowledge of how the stock market can work in your favour, luck does play a major factor in making a profit off of a trade but having a deep understanding of concepts might incline you to consider an interest in trading whether as a side interest or if you’re really dedicated, there are some people who have made trading to be their full time career maybe you might even convince your parents of entering the stock market to trade for you! 

• Of course you wouldn’t be able to legally own any purchased stocks and assets until you are over 18 but you can still manage and make decisions with having these conversations with your parents who can set up an account on your behalf but you're going to have to do a lot of research to get them on board and to show you know what you're doing. 

• Before attempting your first trade, you want to analyse the sector of the market you are in. Ask yourself what sector you think would be most suitable for your goals and what you like. 

• Look at annual reports! Annual reports are reports open to the public about the company’s financial data, market research, product plans and other information but what you want to really know is their income statements and balance sheet. Reading these reports will help you gain insight into whether investing into the company you have chosen will have low risk of losing your money. 

• Picking a brokerage firm! There are many to choose from such as Etoro, pick whichever you feel most comfortable with and start from there!

• you might want to first start paper trading before thinking of buying and selling anything yet! A paper trade is a simulated trade that allows an investor to practice buying and selling without risking real money..

A common misconception amongst people is that they believe trading and investing are relatively the same thing but this could not be more wrong! For a guide into investing and what it is Click here!