You do read things online about how people make lots of money trading stocks. They claim that they have made money very easily and quickly and that everyone can do this as well. These sorts of claims should worry those that read it because if it was so easy, why would everyone not be doing it and why is there a need to advertise how to do it as the person could just be making money with the trading without the need to sell and ebook or set up a website telling others how to do it.

What you need to know:
Stock market trading is something that normally is seem as a long term investment. The stock market does go up in value generally over the years (normally long term would be considered to be at least five years) but it does fluctuate a lot in the short term. This can refer to an hourly, daily, weekly, monthly or even yearly fluctuation, which will always happen, due to people and companies buying and selling stocks. Some people do make short term trades and will buy something cheap, wait for the price to go up and then sell at a profit, but it is difficult to do this for a number of reasons. Firstly, you need to invest a lot of money to get a decent short term return as there are fees to pay, such as transaction fees and tax so to make a lot of money you will need to make it worth it considering those charges.

How you make money:
Therefore, although it is tempting to think that you can make a quick buck out of the stock market, most people are not able to do it. This would be very much about luck and gambling your money and chances are that you would lose money rather than make a lot. If you do want to trade online, then it is best to do your research first. Make sure you have some money to invest that you can afford to lose but think carefully about how to trade it so that you have the best chances of making a profit. You will need to decide whether you want a spread of investments or just one company and how long you are prepared to wait to make money. Then you need to research the different trading companies to see which is cheaper. Some will charge monthly or yearly fees, so you need to consider whether you can afford that considering how much you are going to invest and hope to make back.

It can be pretty complicated, especially for someone that has not traded stocks before. You should make sure that you fully understand how it all works before you invest. If you do not have the time or do not want to do this then it could be wise to use a financial advisor. Although these will cost money, it could really be worth it if they can guide your investment in a way that will be very profitable.