Is Investing Something Only The Rich Do

Stock investing used to be something that only the rich dabbled in but these days it is a hobby that just about anyone with a bit of spare cash at the end of the month can do. There are not many of us who could afford to lose our money each and every month but trading on the stock market can be great if you get to see your investment grow over time.

When it comes to getting started on the stock market, it would be a good idea to think about the things that interest you. Investing in valuable commodities such as silver and gold is a good idea although many people are under the impression that this requires huge sums of money to be invested. Nothing could be further from the truth. By spending only a few pounds it is possible to trade in and out of a few grams of gold or silver. The dealing costs are exceptionally low and this can be an interesting way to try to increase the value of the metal being presently held.

Investing, until recent years, was always conducted through a broker and the fees could be fairly hefty. It was usually in the trading of stocks and shares, and for the cautious investor, the broker would always suggest buying shares in “Blue Chip” companies. The reason they suggested Blue Chip companies was because they were considered to be the safest type of investment and because dividends were paid twice a year. The other way of investing through a broker was in “Unit Trusts” whereby many smallish investments were clubbed together to make a single larger investment.

It is now relatively easy to buy and trade shares through an online broker. Instead of paying huge fees to the traditional stock broker who would work from a luxurious office, the fees for online brokers are considerably less. It used to be the case that clients would always follow the advice provided by the stock broker. The broker went out to visit very wealthy clients either at their offices or in the evening at the client’s home or at their club. But online brokers will charge a small fee of about 10 for every transaction.

The principle of stock market investing was always that it is better to buy at low prices and sell at high prices. This theory sounds great but it is not always that simple. There are a number of different types of trading such as forex trading and spread betting but it is up to you which one you go for. However, before going any further it is important to decide the amount of available money there is in order to start the venture.

It is best to start with a small amount that you can afford to lose and then get going.

Click here to find out more information on option trading and other aspects of investing on the stock market.

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