How to Trade

Lesson Overview

In order to Trade in the Stock Market, You will need a few things to get Started.

First of all it is very important that you develop a very in-depth understanding of stock market before trading. Most of the people, in fact as many as 90% of first time traders end up with losing all their hard earned money as they do not understand this market. That is why, they think it is impossible to earn money in Stock Market and think of it as scam.

However, that is not true. Millions of people generate massive income through Stock Market.


Stock Trading is sometimes referred to as a Zero-Sum game. This simply means that no money is generated in the Stock Market. However, money simply changes hands from one person to another. For example, when one trader losses money, the other trader or traders earn that money back. This means that the 90% of people who lost their money, that money actually goes into the pocket of other traders.

This means that you if learn Stock Trading properly, you can earn massive amount of money in no time. The potential is simply unlimited, it all comes down to your investment strategy and investment amount.

Investment Capital

The 2nd most important thing is capital. After all, you are buying real assets in the form of shares so you need some money to get started with. Do not worry, this money does not go to us or anyone else, it stays with you in your account and you use it to do trading, that is; by buying shares at a lower price and later selling the same shares for a higher price thus generating income. Let’s do a simple math.

Lets say you start your by investing just $1,000 in Apply Stock. At time of writing this, Apple stock is worth around $120 per share. That means, you can buy 8.3 shares of Apple Stock with your initial investment of $1,000. Lets do the math.

$1,000 / $120 = 8.3 shares

We all love blue chip companies such as Apple, These companies are very well managed, they have huge customer base and are always coming up with new innovations and products so they continue to grow and slow and steady pace.

Fast forward a few days, weeks or months. You decide to sell your Apple shares to get back your money. Lets consider that now the Apple stock has gown in value and is now worth $140 per share. This indicates and increase of $20 per share from your original investment. So lets do the math again.

Your total shares — (Multiply By X ) —- Current Worth

8.3 X $140 = $11,662

Thus, your initial investment of $1,000 just turned into $1,162 hence making you a decent profit of $162 in a very short span of time.

Trading Platform

Finally, you will need a Trading Platform to do all this. Trading Platforms are provided by 3rd party brokers. Through their platform, you can do trading and the broker earns a small commission. However, most of the brokers now allow commission free trading which means you keep all the earnings.

Finding commission free Trading Platform is hard and if you search online, you will come across thousands of such platforms. In order to save you the trouble, we have made a list of all the top Trading Platform for your which you can find in our “Trading Platform” section on the left menu.


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