It used to be much more difficult to invest money, before the appearance of the Internet and discount brokers. A mere couple of decades ago, a regular brokerage firm needed to be hired if you wanted to become an investor. Although these used to provide a huge array of services, they came at somewhat heftier prices, rendering most people unable to try themselves out in this profession. Nowadays, however, almost anyone can become a trader. If you have a diversified portfolio, there is no reason to dwindle at the thought of getting into trading, not when it comes with initial investments this low.
FOREX – Foreign Exchange Market
Undoubtedly the largest, as well as the wealthiest of the world’s markets, it is hard for seasoned investors to hear about Forex accepting cheap investments, seeing as how, not that long ago, this one was a domain of huge financial institutions, such as central banks, hedge funds and international corporations. As of recently, Forex accepts affordable investments, and this is how it got introduced into the lives of people with average salaries. Despite this, the Foreign Exchange Market sometimes offers enormous leverages, at times amounting to the ratio as high as 250:1, which is what makes this market an ideal grounds for beginner investors. Based on supply/demand parameters, this market benefits from almost no market manipulation, while being open for 24 hours a day, 7 days a week. On the plus side, you can trade as much as $100,000, after putting down as little as $1,000. The downside here, however, is the fact that it has been known to cause enormous losses.
When it comes to this asset, it owes its popularity mainly to the fact that you can be compensated either in full amount, or nothing at all. This simplicity is what drives people towards this market. The price of a binary option always rests between $0 and $100, and it is here where the main downside rests – because of low earnings, traders often choose to by multiple options, thus causing this way of trading to feel more like a betting place, than a market dealing with stocks. Even though the basics are quite simple to catch up on, this is not to say that you shouldn’t do an appropriate amount of research, before engaging in this trade – the name of the game with regards to this market lies exactly where being informed meets approaching the market at the right time. With this in mind, try consulting 24Option, one of the most reliable online brokers.
Penny stocks tend to be somewhat more volatile than the previously mentioned. However, this is compensated by the fact that it excels in profits too. It is a popular belief that these stocks are quite low in amount. Even though this usually is correct, it is not to say that penny stocks are worth a penny each. As a rule of thumb, every stock amounting up to $5 is considered a penny stock, even though sometimes this number sometimes goes higher. The name of the game with regards to this market is staying well-informed, while making timely decisions.
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