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What Should You Trade

 

Selecting Your Stock Trading Course

 

Stock Trading CourseWith the proliferation of financial instruments or asset classes that can be traded, taking a comprehensive stock trading course that provides a thorough review of the choices available has become even more critical as there are many pluses and minuses to consider with each instrument or asset class. After all, just consider some of the following types of popular trading choices:

 

Popular Stock Trading Course Topics

 

Stock Trading. Many traders opt to trade stocks with so-called penny stocks (which are any stocks that trade below S$5) being the most popular types of stocks to trade. After all, if a stock that trades for only $1 dollar rises 50 cents, the trader will earn a 50% profit (as opposed to a $100 stock that rises 50 cents) and many big blue chip companies themselves would have started out as penny stocks. On the other hand, a good stock trading course will also point out that penny stocks can be extremely volatile, are subject to market manipulation and are often companies with little revenue or profits that can best be described as having products or advanced technologies that are simply way ahead of their time.

Currency/Foreign Exchange (Forex) Trading. Another popular trading choice is currency or foreign exchange (Forex). After all, Forex trading has low capital requirements, is relatively simple to do, trading commissions are fairly low, there are low margin requirements and trading can be done 24 hours a day. On the other hand, a good stock trading course will also warn you that Forex is largely done on unregulated Forex exchanges and any money in a Forex trading account is not covered by depositor insurance or other forms of protection – unlike with most other types of trading accounts. We suggest you read the Forex Trading article if you are considering this popular trading vehicle.

 

Commodities Trading. Many traders also choose to trade commodities instead of stocks or Forex. The benefits of commodities trading include liquid markets, relatively low trading commissions, the ability to utilize leverage to achieve big gains and the fact that many commodities (especially agricultural ones) follow particular cycles or patterns. However, a good stock trading course will also warn you that the use of leverage while commodity trading can be a double edged sword while the price of commodities themselves can be impacted by a whole host of unpredictable factors – from the weather to political unrest.

 

Options Trading. A trader can also opt to trade options on almost any type of financial instrument or asset class available. Hence and in recent years, options trading has grown exponentially in popularity because after all, options give a trader the ability to use a small amount of capital to control a much larger value or amount of a financial instrument. On the other hand, a good stock trading course will also teach you that options trading not only comes with unlimited potential for profits, it can also come with an unlimited amount of risk if options are not properly used or understood.

 

Stock Trading Course to Maximize Your Success Rate

 

By taking a comprehensive stock trading course, you will be in a much better position to make an informed decision about what financial instrument or asset class is the right one for you to trade.

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