The biggest mistake people make is not getting into trading and investing early enough. The best time to start is right now, and even a little bit of money can put you out there and have you start preparing for your future. Some think that their little bit of money will not matter, so they don't save or invest at all. However, that is a huge mistake!
Trading in the financial markets is not just for rich people. Everyone has to start somewhere and you can start yourself by trading on a financial market platform. Just saving a few hundred dollars a month can go a long way for you and your retirement. Less than that is fine as well. Everyone has to start somewhere.
So, what is a stock?
A stock is a share of a company. Some stocks pay dividends, and that is great as well if you want to get into dividend investing and making passive income.
Being a shareholder means that you have voting rights, but it does not mean that you can run the company. You have voting based on electing who the board of directors are for the company.
What is a trade?
Some of you may want me to back up even further. What is “trade?” A trade is when you buy or sell a share on a market. You can trade on an exchange floor or electronically, such as through a trading platform.
Trading electronically is what most people want in the financial markets. The NASDAQ is completely an electronic based trading system and other markets are beginning to follow suit. With the electronic trading platforms, there is a computerized system that matches those who are buying and selling shares. This is done quickly and is a great way to trade.
Do you trade? Why or why not?
Image via Flickr by Dick Thomas Johnson
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