If you’re the type of person who’s always looking for tips on saving money or making wise investments, you’ve probably considered trying your hand at trading on the markets. Investing is appealing, and there are plenty of success stories. But the truth is that it takes lots of hard work and some very delicate analysis. Whether you want to become a professional trader or just want to diversify your portfolio, the key is to arm yourself with knowledge. Proceed with caution, and take advantage of all available community resources to learn about different trading options that are fantastic for beginners.
As a newcomer to the stock market, you want to prioritize accessibility and low-risk investments. Especially as you get your feet wet with your first few trades, there’s a lot that you won’t understand yet about how the market works. You can shield yourself against some growing pains by making conservative investments with a high chance of success. For example, many first consider buying stock in a company, but the cost is prohibitive (there’s typically a minimum investment of $1,000) and many factors can decrease the value of your stock.
Another choice is to invest in futures, but this is also tough for beginners. Some of the biggest successes in futures trades are made by accurately predicting market volatility. This is challenging for a newcomer and thus high-risk. A better choice for a novice is to invest in Forex (the foreign exchange market). Explore the pros and cons of this option in the infographic below.