So, if one had to hazard a guess, you have probably seen what happened with GameStop, right?
It made international news because it was so bizarre.
Basically, a few online traders got together and just started buying shorted stocks.
One of them was GameStop, and all of those that shorted the stock were investment firms. They ended up losing billions!
It was something out of a movie.
However, this has led to a sharp rise in the average Joe wanting to know how to trade stocks themselves.
But maybe you shouldn’t be so hasty to do this, because currencies are just as exciting.
Why trade currency?
Okay, so what is currency exchange trading?
Well, you are ‘buying’ currencies and trading them for another currency. This is what is called ‘currency flow’ on the market floors of every financial hub in the world.
If you think that a currency is going to go up, then you buy more of it, and then trade it with someone who wants that currency and is willing to pay you more, in their weaker currency.
It’s basically day trading, but instead of stocks, you are trading currencies from all over the world.
However, it’s actually a lot less volatile.
For the most part, currencies do not shift and change so rapidly as stocks. It’s far more predictable. There are still risks involved, but if you’re cautious, you could have a lesser chance of losing your money.
Why trade stocks?
Stocks are, of course, the life and soul of the economy.
Businesses that are public have to be fully transparent. So you know when they are in trouble or when they are about to blast their rivals out of the water.
You can trade stocks as a daytrader or as a stock investor. You work with stockbrokers that have been paid commission to sell the stocks either by the company or by an investment firm.
You will then buy stock of companies that you think will rise and perhaps, stock of companies that will fall and rise. And, yes, you can short stocks that you think will rise, when someone else bets they won’t.
How to get going?
For those that want to invest in stocks and create their own portfolios, you need an app like IRESS.
They have a feature that allows for multiple portfolios to be managed, which is great for novice and advanced traders.
You can trade stocks but also commodities such as gold, oil, and lithium. Unlike other apps, this one actually has information for how to get started. It’s not just getting in and going.
You can tread the tutorial and figure out how to trade in the app. This is what has made this type of app great because it actually supports the beginner.
Stocks and currencies both have their advantages in trading.
Stocks are inherently better for those that want to make money fast.
Currencies are great for those that want low risk and smaller commitment stints.