Trading is perhaps one of the most lucrative careers that you can get into. So, if you’re looking to make a whole lot of money, it’s not all too surprising that you’ve made your way here! Sure, trading may seem relatively daunting. We’re all familiar with the stereotypical tropes portrayed in films – business people shouting figures down the phone, paperwork flying everywhere, and tensions constantly running high. While trading can be a high pressure environment to work in, it’s important to bear in mind that media is dramatised and tens of thousands of people engage with trading professionally and the majority don’t experience much more stress than other individuals. It’s just another job and another way of being able to live the lifestyle that you want! So, here are a few steps that you can take to make your way into this industry!
Choosing a Market
First things first, you want to choose a market to trade on. Specialising in a specific area will make you more desirable to people who might employ you, or will give you a leg up and an edge if you are planning on working for yourself. Here are some areas to consider.
The Stock Market
The stock market is perhaps the most basic form of market. It involves purchasing shares of companies when prices are low and selling them on when their value increases. You might purchase standard stocks which entitle you to a share of an actual company’s worth, or you might engage with dividend stocks, which entitle you to a share of a company’s profits. Either way, you could be on to some serious money. You just have to be savvy when it comes to selling up at the opportune moment.
Forex
The Forex market is the world’s largest trading market (which isn’t all too surprising, seeing as individuals from around the entire world engage with it). In Forex, you should look out for leverage higher than 4:100. You want to exchange money when exchange rates are low and sell it on when exchange rates are high. To outsiders, fluctuations in rates may seem relatively slim. But when you are dealing with large volumes of money, even the slightest fluctuation can make all the difference.
Options
The options market is a little confusing for beginners. This is because you don’t deal in tangible goods or exchange rates – both concepts which the majority of us are already familiar with from day to day life. Instead, you trade in options which are derivative, as their value is directly tied up with the value of something else. This makes things a little more complex and you should definitely conduct further in-depth research if this is an area that you are interested in!
While getting involved with trading may well seem intimidating at first, you can take small steps to start familiarising yourself with different aspects of this type of career. Hopefully, this has helped you to understand some of the different markets that are available for you to trade on!
