There are lots of people who dabble in the stock market as a home based business to earn a little extra money in these bad economic times, and there are many people who use the stock market as their major source of income.
If a person does not feel comfortable deciding on his own trades or if he wants help in finding good trades, there are hundreds of stock market people and services who charge for their services. They will take your money in exchange for their recommendations.
There are advantages to this type of home based business opportunity. You don’t have to worry about a downline or upline as in MLM or multi-level and network marketing. You don’t have to hold home parties or sell anything. You don’t have to talk to anyone or interact with other people. If you have an online brokerage account, it is very easy to make your trades without talking to a single person.
Stock services can cover the gamut of stock trading. You can find someone who will tell you how to trade blue chip stocks, options, small caps, large caps, indices, energy stocks, China stocks, and all sorts of combinations. There are so called experts in everything.
Most stock services are marketing to a large number of people. If the service is low priced such as $ 39 to $ 79 a year, they may have thousands or millions of customers. If they do give recommendations, it is hard to get in at the rates they suggest because there are too many people influencing the trades. If the rate they charge for their service is high priced such as $ 2,000 or $ 5,000 per year, it may be difficult to recoup the money invested if the trades do not go well. Although the opportunity for riches is there, it is easy to lose a lot of money fast in the stock market.
Some of the best advice for stock traders is to cut your losses quickly. You can let your winners run or take out some earnings and let the rest run, but you need to cut your losses before they become complete and total losses. A good rule of thumb by some stock traders is to sell out if the trade goes below a 20% loss. That is not easy to do when you think you can regain the money lost. It is wise advice, however.
Stock trading in its many facets has made many people very rich. It has also caused people to lose huge amounts of money. Cutting losses is one way to insure that the losses will not be too horrible.
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