You have some money saved up and you’re looking to invest it in something, but you’re not sure what. Why not start trading in stocks, currencies or other financial markets? You've heard all the fancy business talk and complicated jargon and, frankly, it can be a little daunting. But you don't need to be a Harvard MBA or have years of experience on Wall Street to start trading. These days, anyone can do it. So, just why would your everyday person trade in the financial markets?

People start trading in the markets for various reasons. Some people trade for an additional source of income, others trade full-time; you may even find people who trade for the mental challenge. No matter what the reason, there is a saying in the markets: “People get what they want from the markets".

Here are some of the main reasons as to why trading has become so popular over the years:

Flexibility – Perhaps the biggest upside of trading is just how freely you can do it nowadays. You can trade from just about anywhere—while you’re at work, in traffic or on the subway. You can also choose exactly when you want to trade, be it during the day or deep into the night. All you really need is an Internet connection and a computer or smartphone. Financial markets the world over are now accessible to you any time of the day, and you can receive live updates on your financial investments and the financial markets at the touch of a button. This allows you to have a variety of investment options and to put together a diverse portfolio.

Perhaps the biggest upside of trading is just how freely you can do it nowadays. You can trade from just about anywhere—while you’re at work, in traffic or on the subway.

Instant Information – The Internet has made it so much easier to obtain investment information. You no longer have to rely on CNN or your broker or bank to know how your investments are performing. There are great websites and tools dedicated to tracking market performance, and you can customize them to show results specific to your interests. You can even track and request notifications on certain investments so that you know when they reach favorable trading conditions.

The Internet has made it so much easier to obtain investment information. You no longer have to rely on your broker or bank.

Choice – You now have the freedom of choosing which stock, commodity, currency or bond to invest in. Previously, stockbrokers and banks would tell you where to invest your money. Sometimes they would give sincere opinions, but much of the time their motives would be self-serving. They had targets to meet, stock that they were pushing, bad stock to offload—you name it. Now, you can go online, do your own research and verify the viability of an investment option before you commit to investing in it. You get to choose what to invest in, when to get on board and, equally important, when to jump ship. Day trading or short-term investing allows you stay focused on making money. You learn to cut your losses when an investment isn't performing. You’ll also start investing in markets and products that you don't directly consume. Long-term investing can make you subjective about and attached to your investment. This is risky, and it can be costly if you don't know when to bail.

You now have the freedom of choosing which stock, commodity, currency or bond to invest in. You get to choose what to invest in, when to get on board and, equally important, when to jump ship.

Lower charges – Stockbrokers and banks used to charge an arm and a leg for their services; but the world has changed. There are more stockbrokers out there then ever before, and you no longer have to travel to major cities to see them—you can reach them from anywhere in the world. This change has forced brokerage firms to lower their charges and commissions in order to remain competitive.

Due to the increase in demand and available brokers, charges and commissions have reduced over the years.

No experience needed – You don't have to have an MBA, be a CEO or have decades of experience to start trading in the financial markets. You just need to do research. Simply find a good, affordable broker, start researching good investments options, and then place your order. Information is readily accessible online—you found our website, didn't you? There are many great websites and blogs that can also give you sound investing and trading information.

You do not need to have years of experience to start trading.

Low start-up – While starting a business can be very costly and time consuming, financial markets offer a low-cost investment alternative. You can start trading with whatever amount of cash you have, no matter how small. In fact, you should start small. Get a feel for the markets first before you invest your life savings; long gone are the days when brokers would ignore you because you weren’t investing $50,000.

Start with a small trading account until you get a feel for the markets.

Quick returns – The returns in the financial markets can be very fast, depending on where you’re investing your money. You don't have to tie your money up for months in an investment before you see a return. Some industries flip very quickly and will allow you to grow your investment within hours. However, these same industries also dip quickly, and they are generally not advisable for long-term investments. If you're looking for a quick turnaround, then it’s imperative that you do sufficient research and analysis.

Some industries flip very quickly and will allow you to grow your investment within hours. However, these same industries also dip quickly, and they aren't advisable for long-term investments.

No investing caps – The beauty of financial markets is that there are no caps. As stated, there are no lower investment limits and, likewise, there are no upper limits either. You're free to invest as much as you'd like, and your returns aren't capped either. You can keep all the returns your investment earns, no matter how big or how small. You're also free to do as you please with your profits. You can reinvest them or put them to other use.

The beauty of financial markets is that there are no caps. You're free to invest as much or as little as you'd like.

 

Bottom Line

An increasing number of everyday people are trading in the financial markets, thanks, in short, to the opportunities afforded by the Internet. Increased flexibility, quick returns, low start-up costs, and ease of access to research information are just a few of the reasons that previously inexperienced people are beefing up their knowledge and taking their chances in the world of short- and long-term trading. Previously off-limits to a “special” few, the democratization of the markets is providing the people of the world with the opportunity to increase their wealth and the quality of their lives.

Summary


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Perhaps the biggest upside of trading is just how freely you can do it nowadays. You can trade from just about anywhere—while you’re at work, in traffic or on the subway.


P

The Internet has made it so much easier to obtain investment information. You no longer have to rely on your broker or bank.


P

You now have the freedom of choosing which stock, commodity, currency or bond to invest in. You get to choose what to invest in, when to get on board and, equally important, when to jump ship.


P

Due to the increase in demand and available brokers, charges and commissions have reduced over the years.


P

You do not need to have years of experience to start trading.


P

Start with a small trading account until you get a feel for the markets.


P

Some industries flip very quickly and will allow you to grow your investment within hours. However, these same industries also dip quickly, and they are normally not advisable for long-term investments.


P

The beauty of financial markets is that there are no caps. You're free to invest as much or as little as you'd like.

 

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Comments

ruslan14
# ruslan14
Monday, March 31, 2014 4:15 PM
Interesting article, well written. Thanks Tradingfo

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