Wednesday, August 31, 2011

Trading in the Stock Market

Trading in the stock market is just like buying and selling.  You buy stocks when the price is low and sell it when you already realize the profit you have targetted from it. There is no physical products involved, just the computer, internet connection and the broker's trading platform (this is applicable for on-line trading).

I'm not a professional stock trader who uses graphs and indicators to enter or exit a certain trade but I have developed my own strategy and so far, I'm earning decently from my trades although I don't earn daily but overall, at the end of the year, I am able to profit 30% to 40% of my capital.  Doesn't sound much for professional traders but for a simple mother who wants to augment the family's income, it's already a big thing for me ... payment for insurance premiums and other family expenditures which I don't need to get from my husband's pay check.

Aside from the earnings that I get from stock trading, I also enjoy exercising my skills on planning and decision making in making my trades, it just makes my mind working and I love it.

What is important in stock trading is that you have your plan and you have the fund so you can execute your plan but always remember this, trade only the extra money that you have ... not the money for your family's monthly budget, not the money for emergency purposes and most of all not the money that you have borrowed. 

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