Trading is an investment
This is a question with two answers: Yes and No.
Let's be smart, for the majority of day traders, becoming successful through online trading is a far reach. You need to have the 'right-place-right-time' conditions, a good amount of free money to invest and extra special market conditions (or traders' luck).
Some investors may be able to turn $1000 to $10,000 and then eventually to increase their earnings, but if you don't have patience, educate yourself and learn the markets then this may probably never happen.
Trading is not a 'get rich quick' answer but more of 'a long-term investing process.' The key is to steer away from absorbing too much useless information containing confusing messages which influence your trading decisions, and stick more to finding out how to invest properly with educating yourself via reliable sources and having a proper financial strategy.
Having an investment portfolio is one step towards accessing the global markets and reaching towards profitable trades, if you are indeed, successful. It's always good to start investing when you are confident and ready, so here are a few things to keep in mind:
If you're ready, why wait?
Investing is risky, there is no doubt about that. Anyone entering the markets can invest as little as they are comfortable with and spread that investment over stocks, forex, or any other asset group they like and watch the progress of those trades over a given period of time. If this strategy works then of course, as a trader you will naturally revise your investment and perhaps change your plan. Let's say hypothetically you invested $20 per week on assets giving you a return of 8% over 5 years as a long-term investment, you would see the following ROI:
$1,082 return in year 1
$6,347 return in year 5
$15,914 return in year 10
We're not saying it's easy or definite, but if you want to invest, always be cautious and understand the volatility of the market and the economical/political circumstances that influence it.
Don't be afraid to read and see the long-term goal
We can lose money on a daily basis due to inflation, investing is one way you may actually be able to see returns on your equity. Read as much as you can, educate yourself on current market conditions and see your trading portfolio as a long-term investment rather than a 'get rich quick' scheme as we mentioned earlier, which never hardly works.
Don't confuse yourself with more than you need to
If you are a beginner you may get caught up and confused over the vast amount of stocks and other asset groups there are to invest in; don't. There is no more complexity behind one asset over another, so, as we mentioned a few times, stick to one source to learn about the asset you are interested in and practise your trading methods until you are ready to open a live position. Also, never ever forget the golden rule; don't invest more than what you can afford to lose!
Whatever it is you wish to invest in, you can do it with 0% trading commissions and zero deposit fees with ForexTB. Explore a free demo account with $100k virtual money and explore over 300 financial CFDs on MT4 or our WebTrader platform.
This article was submitted by ForexTB.
