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    Hi- So I really want to start trading stocks. My Math education stopped at GCSE where I got an A grade. I'm going to study Law at University, so there isn't much of a connection there.
    I'm particularly interested in penny stocks, as you can make significant amounts of profit over a short period. Are there any videos/books I can read? Preferably something a little simplified!

    Thanks!
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    I don't know much about penny stocks but I assume it's easier and faster because it's in penny's so you'll have larger percentage changes with a 5-10p change. One thing to remember is that stock values don't necessarily represent the value of a company however the change in its value can tell you it's performance but you can't compare 2 prices and say which is worth more, but you can say which is performing better by tracking it's changes.

    Stock trading is all about understanding the economy, everything is linked. E.g an increase in interest rates effects the currency which effcts the price of oil, it actually makes it cheaper. So the stock price of BP would probably increase along with other companies that rely on imports.

    If oil prices went up for the many reasons it does, this can effect the entire market through a circulation effect (although someone somewhere is ALWAYS making money). So you need research things like this and understand circumstances that impact the markets, if you enjoy economics you can easily make sense of it. Try using an app like Trading212 they have trial accounts where you just trade with valueless numbers. First you have to understand what impacts the markets in the long run, then in the short run, then on a day by day basis then on an hourly basis, once you learn how to understand markets by the minutes you can make huge money.
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    (Original post by zayn008)
    I don't know much about penny stocks but I assume it's easier and faster because it's in penny's so you'll have larger percentage changes with a 5-10p change. One thing to remember is that stock values don't necessarily represent the value of a company however the change in its value can tell you it's performance but you can't compare 2 prices and say which is worth more, but you can say which is performing better by tracking it's changes.

    Stock trading is all about understanding the economy, everything is linked. E.g an increase in interest rates effects the currency which effcts the price of oil, it actually makes it cheaper. So the stock price of BP would probably increase along with other companies that rely on imports.

    If oil prices went up for the many reasons it does, this can effect the entire market through a circulation effect (although someone somewhere is ALWAYS making money). So you need research things like this and understand circumstances that impact the markets, if you enjoy economics you can easily make sense of it. Try using an app like Trading212 they have trial accounts where you just trade with valueless numbers. First you have to understand what impacts the markets in the long run, then in the short run, then on a day by day basis then on an hourly basis, once you learn how to understand markets by the minutes you can make huge money.
    Thank you for that! Especially the explaination about how the economy affects the stock market. I mean obviously I knew this to an extent- like how changes in the aviation market can affect aviation stocks etc, but I didn't realise that oil for example affects the whole market!


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    (Original post by hudamh)
    Hi- So I really want to start trading stocks. My Math education stopped at GCSE where I got an A grade. I'm going to study Law at University, so there isn't much of a connection there.
    I'm particularly interested in penny stocks, as you can make significant amounts of profit over a short period. Are there any videos/books I can read? Preferably something a little simplified!

    Thanks!
    Commercial awareness, an understanding of accounting principles (and a willingness to pour over them) in addition to understanding investment strategy are all required for long term success. The good news is that you don't need an absurd level of maths though, it's more about application.

    Also i'd scrap your approach to going with penny stocks. There's a reason most of them are worthless.
 
 
 
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