ChickenPie67
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#1
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#1
I’m not an expert on the specifics such as analysis but i know roughly what the idea is.

My question is this, is trading a stock as easy as looking at a graph, seeing an upward trend, buy a stock, see that the value has gone up after an hour or 2, maybe a day, and then sell it for some quick money. I’m seeing a lot of people saying they’ve got into trading but what does “get into trading” actually mean, my mate made over £100 just by investing in a pennystock, was it luck?

Everywhere i read i see it’s risky etc and you should instead be investing into an index fund and wait for the long term growth but if my mate made 100 quid in a week i wanna see if other people are doing that too.

So basically, is trading a stock as easy as looking at a graph it goes up and then you sell, do you trade? and how much money do you make?

Thanks
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ch0c0h01ic
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(Original post by ChickenPie67)
I’m not an expert on the specifics such as analysis but i know roughly what the idea is.

My question is this, is trading a stock as easy as looking at a graph, seeing an upward trend, buy a stock, see that the value has gone up after an hour or 2, maybe a day, and then sell it for some quick money. I’m seeing a lot of people saying they’ve got into trading but what does “get into trading” actually mean, my mate made over £100 just by investing in a pennystock, was it luck?

Everywhere i read i see it’s risky etc and you should instead be investing into an index fund and wait for the long term growth but if my mate made 100 quid in a week i wanna see if other people are doing that too.

So basically, is trading a stock as easy as looking at a graph it goes up and then you sell, do you trade? and how much money do you make?

Thanks
The principle of trading is trying to buy something for less than it's underlying value, holding onto it for a period of time, and then selling it when it's worth more than you paid for it.

Sounds easy right?

Unfortunately the reality is that the vast majority of traders aren't able to accurately assess a share's/commodity's/currency's value, they are just guessing/gambling on it's movement (despite what some might tell you). Your probability of making a profit is further reduced by the poor margins involved, buying/selling fees, transaction delays, commission, etc.

So while some day traders make a profit (<2%), the vast majority (>98%) lose most, if not all, of their money.

It will seem like most people are far more successful, however that is because of poor accounting and survivor's bias over a relatively short period of time. Also be aware that a lot of the people on Instagram claiming to be successful "traders" earn their money by commission or selling crap training resources or "signals", not trading!

In the most simple terms, day trading is a mugs game.

On the other hand investing in broadly diversified, low cost index trackers over an extended period of time (ie; 10+ years) represents a much lower risk, and has a much higher likelihood of generating a profit.
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Quady
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(Original post by ChickenPie67)
I’m not an expert on the specifics such as analysis but i know roughly what the idea is.

My question is this, is trading a stock as easy as looking at a graph, seeing an upward trend, buy a stock, see that the value has gone up after an hour or 2, maybe a day, and then sell it for some quick money. I’m seeing a lot of people saying they’ve got into trading but what does “get into trading” actually mean, my mate made over £100 just by investing in a pennystock, was it luck?

Everywhere i read i see it’s risky etc and you should instead be investing into an index fund and wait for the long term growth but if my mate made 100 quid in a week i wanna see if other people are doing that too.

So basically, is trading a stock as easy as looking at a graph it goes up and then you sell, do you trade? and how much money do you make?

Thanks
Yes, or see a downward trend, sell, they buy when you think the down trend is ending.

Or see something going up/down and think its going to reverse and proceed accordingly.

I don't trade.With the financial markets I can't tell how to evaluate short term movements.
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concernedLMAO
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(Original post by ChickenPie67)
I’m not an expert on the specifics such as analysis but i know roughly what the idea is.

My question is this, is trading a stock as easy as looking at a graph, seeing an upward trend, buy a stock, see that the value has gone up after an hour or 2, maybe a day, and then sell it for some quick money. I’m seeing a lot of people saying they’ve got into trading but what does “get into trading” actually mean, my mate made over £100 just by investing in a pennystock, was it luck?

Everywhere i read i see it’s risky etc and you should instead be investing into an index fund and wait for the long term growth but if my mate made 100 quid in a week i wanna see if other people are doing that too.

So basically, is trading a stock as easy as looking at a graph it goes up and then you sell, do you trade? and how much money do you make?

Thanks
In addition to what the above guy said it is extremely stressful and time consuming.
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mnot
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#5
(Original post by ChickenPie67)
I’m not an expert on the specifics such as analysis but i know roughly what the idea is.

My question is this, is trading a stock as easy as looking at a graph, seeing an upward trend, buy a stock, see that the value has gone up after an hour or 2, maybe a day, and then sell it for some quick money. I’m seeing a lot of people saying they’ve got into trading but what does “get into trading” actually mean, my mate made over £100 just by investing in a pennystock, was it luck?

Everywhere i read i see it’s risky etc and you should instead be investing into an index fund and wait for the long term growth but if my mate made 100 quid in a week i wanna see if other people are doing that too.

So basically, is trading a stock as easy as looking at a graph it goes up and then you sell, do you trade? and how much money do you make?

Thanks
Making money fast is risky, if it wasnt risky every financial institution would be doing do it and the potential would dry out.

Lets pretend its roulette. If you put all your money on red or black you can double your money or loose it, the thing with the markets is its like having your money permanently on the board with the wheel constantly turning at any point you can miss and if ypu invest in 1 or 2 stocks everything can be wiped out, any profits + original investment. But someone who hedges and cuts their money into lots of little chunks they can play on 100 tables simultaneously, now they can still get wiped out but the chances all 100 tables blow up simultaneously are very low.

be sensible. 90% retail traders blow up. (then again people who invested in Tesla or Apple early days are laughing, the choice is yours). Just educate yourself at least.
Last edited by mnot; 7 months ago
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