Of all the ways of investing your wealth, trading on the market is risky but exciting. Making money becomes simple when you consider trading on the market because of one thing. There is a good chance of making enough money if you make the right choice of stocks and shares to invest your money in at the right time.
Pick the right stock
This means that you must not choose a volatile stock to invest in or one that is not showing a good return. The trend is usually to sell high and buy low so that you get a good return on your pick. You can bet on a reliable stock such as bank or oil stocks but you must choose them when they are hot. They will cool off after a period and then you have to move your money. It will be useless if the stock is stagnating and there is no movement in the market.
The way forward is to choose a broker, a market-savvy broker. The option the investor has when it comes to the choice of brokers includes the full-service broker and the discount broker. You can go through the List of Discount Brokers and choose one that works for you. The criteria when it comes to the choice of the broker will include a responsive trading platform among other things.
Lower fee per trade
The advantage of using the discount broker compared to the full-service broker is that you do not pay as much fee as you do when you use the full-service broker. Paying a lower fee for all your transactions will help you save money. The full-service broker charges you a percentage of entire transaction value. So, if you make a trade for $5, 00,000 and the fee is 0.5%, you will end up paying the broker $2,500 for that trade alone. If you make more trades through the day, you will pay this kind of fee throughout the day.
If you choose a discount broker, you end up paying less. This is because they charge a flat fee of $5.25 per trade. You can see a huge difference there is when it comes to fees. This is especially so when you make huge trades and conduct many at that. Making the correct choice from the List of Discount Brokers is important. If you do not want to lose money, you must choose a broker who charges a low fee and provides good service.
You make your own decisions
The shortcoming of the discount broker is that he will not tell you which stock to invest in or what will happen when you invest in some volatile stock. This suits those investors who do not want advice on what to do and where to invest. Of course, those who are newcomers to the world of investing will not do well because they will not have any advice.
Getting some advice from your broker is always recommended since this improves the chances of making a good trade. The broker is always in touch with the market and knows which stock is acting in a strange way and which one is showing a steady progress. Again, the market savvy investor can study the charts and make the decision on his own.