How and Why Finance and Business Students should Learn the Basics of Stock Trading

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

The Importance Of Stock Trading

Any good consumer product has one end goal – proliferation. Nike sells millions of pairs of shoes around the world with some fetching ridiculous amounts of cash. The sneaker culture is rife and collectors will part with an arm and a leg just to get their hands on to a footwear item that will likely go behind a display cabinet never to be worn again.

The internet, by far the most important creation of the last 60 years, although only made commercial in the last 25 years, has proven to be an indispensable part of the humanity’s existence. What used to be a world into which we used to escape is now the world itself. 

The proliferation of the internet and with it e-commerce, surfing speeds and smartphone technology, has made sure that just about everyone, with little means, can access the information superhighway. The schooling system now offers subjects more geared towards the technology that caters to the creation of websites and the business aspects thereof.

Many businesses have taken their operations into the online space, deeming it indispensable. Even the stock market, once an industry exclusive to its financial hubs, namely Wall Street, London and Tokyo, has now become accessible through the magic of the internet. In fact, if you’re a student of finance or business, then learning the basics of stock trading is sure to be in your best interest.

The basics of stock trading

How and why you should learn the basics of stock trading is both a question and a reason.  Let’s first confront the reason; of which there are many!

Stock trading for the longest has time has been an elusive figure within in the financial sector. Shrouded in myth and fantasy to anyone from the outside looking in, this Wall Street alumni institution made itself aloof through the use of specific jargon sure to disinterest any interested parties.

Markets, shares, commodities and indices, were terms all used as gatekeepers to Joe Public. But now that online trading has become quite ubiquitous on the world-wide-web, its exclusivity and prestige has fallen away to a large extent. It’s still a very different and exciting world to explore with lucrative possibilities, it’s just that there’s no longer any need to find it intimidating, especially once you endeavour to explore it.

The How of the above statement is quite simple and entails signing up with one of the many online traders. Before you do so, do make sure that the organisation is licensed and regulated.

Once you’ve opened an online trading account, it’s advisable to first become acquainted with the software, the system, and the world itself. This can be effectively achieved by way of a demo account, consulting on legit trade chat forums, and the use of automotive bots; the latter can be especially helpful if you’re trying to turn this into a side hustle. Specific methods of trading, like CDF (Contract For Difference), which is essentially what you’ll be partaking in, is itself quite a simple process once you grasp the intricacies.

To put it simply, you’ll be speculating about the price of a share within an allotted space of time. Will it go up? Will it go down? And, because you’re speculating, you’re not actually being made to buy shares, which usually requires a fair amount of capital and the weeks, months, and years of patience to see the fruition of profit.

Speculation on the other hand requires much less money and can yield faster profits – although, like the market itself, this is never guaranteed.  On a parting note, it’s best that you learn before you try and earn, and that you accept the volatility of the market.