The Basics Of Stock Trading: Facts Every New Investor Should Know

The following is a guest blog post:

If you’re new to stock trading, you’re in the right place. You’ve probably already heard stories about how someone you know turned a small investment into a huge windfall and might want some of that for yourself. While these big gains are sometimes possible, they are still quite rated and shouldn’t really be what you’re getting into investing for.

However, if you want to try and achieve some long-term financial gains and move towards more sustainable growth in your passive income – investment could be for you. In this article, we’re going to look at a few different things you need to look at if you’re new to investment, so you can make sure your money is secure and your goals are achievable. Let’s have a look at the info:

Stick to long-term goals

Too many people get into stock trading thinking they can double their money in a couple of years. While there might be the odd success story like this – they’re super rare, so get them out of your mind. Your goal should be achievable, and it should be over a longer period of time.

While there are many “day traders” who make money off of the fluctuations that happen over 24-hour periods, this is often a full-time job and one that comes with a lot of risks. For someone new to the investment you should steer clear of this sort of trading and stick to something that’s going to earn you money over a much longer period.

Make sure you have realistic earnings in mind

Again, this ties in quite well with the previous point – you need to make sure you’ve got realistic earning goals as well as real-time goals. Your aim with investment should be to make a slightly better return than if you just left your money in a savings account – not to suddenly get rich overnight. That means you should be happy with a 7-8% yearly return on your investment as a sustainable way to grow your cash. That also means that you shouldn’t expect too much from your investments. The higher yield you’re after – the more risk you might need to take.

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