Stock Trading News - Why Trade Stocks ?
So you want to trade stocks? You probably know that despite the recent stock market crash buying and selling stocks is a fantastic way to become rich. Stocks and shares can make you money while you sleep, provided you choose the right stocks to trade of course.
When you trade stocks and shares you are buying into investments that consistently outperform all other investments in the long-term. This is also an unprecedent time in stock market history as it has never been easier to open a stock trading account with an online stock broker and trade stocks online with all the real time quotes and prices, and real time charts that you could ever want. Just like a professional stock trader or investment manager.
Since 2007 there has been a stock market crash of historic proportions with the DOW, Nasdaq and S&P down around 50%. However, don't forget that the second richest man in the world Warren Buffett aka the Oracle of Omaha became rich purely by trading stocks, or more accurately, by investing in stocks, as he does not like trading stocks short term, he prefers to buy and hold stocks for the long-term - at least 5 years but usually a lot longer. He also re-invests any dividends.
It is interesting that Warren Buffett started buying stocks again back in October 2008 after not doing any stock trading for many years, as he considered that all stocks were way overpriced and that there were no profitable stock trades to be had. He has now changed his opinion and although he was too early by deciding to invest in the stock market again back in October he is nevertheless confident that over the long-term his stock trading investments will prove to be profitable.
Long-term buying and holding of stocks is a far more sensible option than trading in and out every day, day trading, unless you are exceptionally gifted. Oscar Carboni is a day trader of stocks who appears to get it right more often than he gets it wrong, he also offers a lot of stock trading advice online and live for free !
According to Mr Carboni we may be seeing a fundamental shift in the stock market. He has been selling stocks since October 2007 when the stock markets peaked, turned around and plummeted. Now, however, in March 2009 he has just changed his position and is cautiously buying back into stocks. Because he is a day trader he trades stocks each day sometimes more than once and closes his positions so that he does not hold on to any stocks that he has traded overnight.
There is a lot of money to be made on the stock market. How do we know this ? Because people have lost millions trading stocks ! It is clear therefore that if you can lose millions trading stocks you can also make millions on the stock market.
We may well be at a historic point in the stock markets, at the beginning of a long bull run after the worst bear market since 1929 and the great stock market crash. The current uptick could, however, also be just a short-term blip that may last a few weeks so take care if you decide that you want to get involved in stock trading.
