Share trading, also known as Stock Trading, is the possible acquisition of shares from a company in the hopes of getting huge profits.
The main concept would be to buy shares from a company and you can either trade it to potential buyers or you can hold on to it to earn money from a company’s dividends.
I will discuss all of the benefits of share trading in this article, so be sure to read on to find out more about this.
1. Good Returns
One of the best ways you can earn money through share trading is, well, by doing actual trades with stock brokerage firms. Think of this as your common market where you buy goods at lower prices and sell them at a much higher value to earn maximum profits.
Share trading promises a good return on investment because there are some company shares that are much more valued than the others.
If it is a well-known company, it is deemed as a more stable entity which means that you might not get a very high return, but you can actually have a steady income stream in the years to come.
If, on the other hand, you’re going to invest in a small company with a promising growth in, say, 10 years from now, you’re going to earn more since the shares by then will be valued much higher than it currently is right now.
However, keep in mind that if you’re going to follow the latter strategy, there will also be a possibility that the company will not turn out the way you had hoped. Although it can be risky, a little bit of luck can actually help you get greater returns.
2. Company Dividends
Trading is not the only way for you to earn money using the platform. You can also earn it through the dividends that companies hand out to their shareholders.
They are usually paid bi-annually and the amount will depend on a. the shareholder’s total stocks and b. the amount of money the company has received.
Do note that the company you’ve invested in might not choose to give you dividends and instead, they will invest it in their company for better growth.
This can still prove to be advantageous to you given that when a company grows, so will its stocks’ value.
3. Global Market
The beauty of the stock market is that you acquire stocks from international companies and you can sell them at the currency of your choice. There are conversion fees that you need to pay, of course, but because of the number of global companies you can invest in, the possibilities are endless.
Share Market trading is actually quite a lucrative thing to do. There are plenty of strategies out there that you can employ that will really help you get a large amount of money, given the appropriate time.
You can earn profits just by trading, relying on company dividends, and even buying and selling stocks in the global market as well.