So, I tell you that you can make a lot of money. I tell you that you do not need a lot of money to start in order to get involve. I tell you that there are others that have become rich, even wealthy doing this. I tell you that this is an investment, not gambling. I tell you that I am regulated to some degree. I show you where you can go to check me out. I show you testimonials. You listen and become interested. It sounds to good to be true but the evidence is staring at you in the face. I tell you that all you have to do is read some books, take a course and learn some strategies. It all sounds so easy, feasible and practical. You want to give it a try.
In the world of online trading, you will find all of the above. The trade can be in stocks, commodities, or currencies. All you have to do is set up an online account, deposit the required funds and start trading. The problem is that you will most likely loose all your initial investment and more if you continue. Are there people who are successful at online trading? The answer is yes. But those people are few in numbers and they are usually people who have been trading for years if not decades. The other factor is that those people have the capital to stay in the game. This is very important because in trading; you will suffer losses. If you cannot weather these losses, you will never pick enough winners to stay in the game or for that matter be successful.
A Ponzi scheme works in such a way that the people at the top of the pyramid end up with all the money. The online trading game is similar to a Ponzi scheme. Research shows that most traders lose money. The few that make money collect it from the losers who lost the money. In other words, the 70 - 80 % who lose money, pay out to the 20 - 30 % that makes money. But, it does not stop there. Even if you make money, fees and taxes eat away at your profit. So, you end up paying another group of people at the top of the pyramid besides the game maker. You end up paying the tax man or woman and endure more losses. In the end, it's all a confidence game. Only this game is to some degree legal and regulated, sometimes (see: Binary Options).
Remember the old adage, If it is to good to be true, it probably isn't. You would be better serve to take part in your companies 401k. You would be better off investing in an index mutual fund, if you have money to spare after the 401k contribution. And if you still have more money burning a hole in your pocket, take a tally of the things you most use (see: electronics, social networks, household items, personal care products, etc.). Research the companies who makes these items and invest in them by buying their stocks. It's the long game when it comes to this type of investment. But it will be well worth it. A lot of these companies will be well established and profitable. It may not be as fancy as saying, "I'm a trader." It will in the end allow you to say that you are an investor, a savvy one.
In the world of online trading, you will find all of the above. The trade can be in stocks, commodities, or currencies. All you have to do is set up an online account, deposit the required funds and start trading. The problem is that you will most likely loose all your initial investment and more if you continue. Are there people who are successful at online trading? The answer is yes. But those people are few in numbers and they are usually people who have been trading for years if not decades. The other factor is that those people have the capital to stay in the game. This is very important because in trading; you will suffer losses. If you cannot weather these losses, you will never pick enough winners to stay in the game or for that matter be successful.
A Ponzi scheme works in such a way that the people at the top of the pyramid end up with all the money. The online trading game is similar to a Ponzi scheme. Research shows that most traders lose money. The few that make money collect it from the losers who lost the money. In other words, the 70 - 80 % who lose money, pay out to the 20 - 30 % that makes money. But, it does not stop there. Even if you make money, fees and taxes eat away at your profit. So, you end up paying another group of people at the top of the pyramid besides the game maker. You end up paying the tax man or woman and endure more losses. In the end, it's all a confidence game. Only this game is to some degree legal and regulated, sometimes (see: Binary Options).
Remember the old adage, If it is to good to be true, it probably isn't. You would be better serve to take part in your companies 401k. You would be better off investing in an index mutual fund, if you have money to spare after the 401k contribution. And if you still have more money burning a hole in your pocket, take a tally of the things you most use (see: electronics, social networks, household items, personal care products, etc.). Research the companies who makes these items and invest in them by buying their stocks. It's the long game when it comes to this type of investment. But it will be well worth it. A lot of these companies will be well established and profitable. It may not be as fancy as saying, "I'm a trader." It will in the end allow you to say that you are an investor, a savvy one.
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