I'm in my 50's and have an interest in the global economy and investing as well as experience with some financial basics. These are my thoughts and experiences on trading, tips, investing, and the economy.
I started searching for investing tips beginners in my twenties.
I got obsessed with investing in my early 20s. Back then I didn't have the extra capital, so I looked at things that were highly leveraged. ( Like futures and penny stocks ) I was attracted by the allure of quick money, learning, new things, freedom, unlimited upside potential, self-improvement, the addiction, the ability to use massive leverage, and chicks dig traders
The first tip is that you can lose more than you put in. Volatility is an obvious danger, but it is still worth mentioning. Highly levered stocks and futures can fluctuate and spike up or down quickly. When you invest in leveraged instruments, the chances of losing money are much higher than with other investments.
The following are some of the risks involved with this type of investing:
Leverage can work against you. When you buy on margin, the profits accrue to your account are matched by losses in your account. In other words, if your stock goes up 20%, but you only have 10% equity in that investment, your gains will be limited to 10%. If the price drops back to where it was when you bought it, your losses are also limited to 10%. Do you see how this works? Your gains are limited, and so are your failures. That's why it's called leverage — it gives you more buying power than you have in cash (or cash equivalents). It also means that if things go wrong for you and the price drops significantly (more than 10%), then all those losses will come out of your margin account first — before any of your other investments take a hit.
Liquidation can happen very quickly! Most margin accounts require brokers to liquidate securities when an investor's equity falls below a certain threshold — usually 50% or less. As a result, you may have to deposit funds or sell securities to meet margin requirements.
I spent thousands upon thousands of dollars on real-time data and trading software. Back then, the data wasn't readily available online, so I had to buy a satellite dish. PLUS, another $250 fee per month just to put bars on a chart. I spent most of my time in Supercharts and then later Tradestation. You can build your indicators and alerts with Tradestation. So I had it sorted through a list of 10,000 penny stocks. Today I am amazed at what tradingview.com has to offer for free!
Tradstation is a popular software for traders, but there may be better choices for those who want to work with many charts.
Traders and investors widely use the Tradestation platform to make trades and manage their portfolios. It can be used to create and analyze financial data, execute trades, track performance, and more. It's expensive software, but it's worth it for investors who want the best tools to help them make better decisions.
However, Tradestation has been reported as a resource hog on some systems. If you have an older/smaller processor, you should be careful when using this software because your system may slow down significantly when running this program in the background.
I swore the lights dimmed when there was a price spike. The fans kicked up and the SCSI drives started grinding ...
Stock trading software scams are not new in the market. They have been around for a long time. However, the problem has become more prominent with the introduction of cryptocurrencies.
A lot of people are looking to make quick money by investing in cryptocurrencies. But it is also important to know that there are many scams out there and you should be cautious about what you invest your money into.
One of the most common scams in the stock market is software that promises to make you rich. These scams are often promoted by fake reviews that create a false sense of security and trust. They will lure you into a false sense of security with promises of high returns and low risk.
As a trader, it is important to be aware of these trading systems scams so you can protect yourself from them.
Another problem with these scammers and fake trading systems is that they will ask you for your credit card or bank account information before they give you access to the system. They can withdraw money from your account anytime without your permission or knowledge if you do not cancel your subscription.
When my name got out there, I got constant calls from people pitching their "high-return trading systems". (Now they call them trading robots) Eventually, I got short with them and would say ... " Sure, I believe you ... you can make money with any trading system IF YOU SELL ENOUGH OF THEM." Seriously. If you had a highly profitable trading system ... It doesn't make sense to sell it. (Would you sell your magic money printing machine if you had one?) It would need to be specialized for each market. So it would increase competition for good fills.
If you're thinking about investing in highly leveraged stocks and futures, here are some of the dangers you should be aware of:
High risk of loss. The ability to make quick profits can also mean high losses. A stock that doubles in value may suddenly lose half its value.
Volatility. Highly leveraged investments exhibit greater volatility than traditional investments, which means they can be subject to greater price swings up or down.
Liquidity risk. If there is a lack of liquidity in the market for an investment, it can become difficult or impossible to sell your position at a fair price.
I hope these investing tips for beginners were helpful! Ben Alexander