i know the fact that in stocks arenīt that much factors involved like in the currency market.
...
I am asking cause i am looking for investing (not speculating on high risk) for mid-term maybe 2-5 years, instead of daytrading currencies.
Ignored
I totally disagree. Trading stocks -especially if you want to do it long term like you wrote- means that you have to read and understand all business reports from any company you would like to invest in.
I came to this hearing more and more people saying...
...Some friend of mine (graduated banker) told me...
Ignored
If you lose money because you followed some else`s tips, then who is responsible?
You. Because you chose to listen to that person.
Will your friend or any expert you got tips from give you a refund if you lose money?
You are responsible and it is your money.
In any field of life it is valuable if you know for yourself what to do. Investing is no exception.
Of course you need information to make those decisions. But the good news is that you can get the information that you need.
there is nothing instead of some luck as private retail trader in the currency market if you not some of the big players trading with really deep pockets.
Ignored
"big players" - these are traders that work for investment banks for example. They are often referred to as "the institutionals" or institutional traders.
If you can trade on the same side as those people, then you can sort of surf the wave of the price movement they produce. It`s my personal conclusion (for my trading) that this is what I want to exprore more. The means to this is price action. This is not a tip for you to do. It is what I want to do for myself. Maybe you want to read something about it though.
there is a good chance of trading Oil when it comes down to under 95 again, because America drubbed the price there because of the Lybia Crisis and itīs likely that is going up again. So you could buy at 95 at a "zero-risk" and go long for 2 years...
Ignored
1. There is no zero-risk.
2. I also think that on the long term oil will go up. But you could still lose money. There are so many factors to international politics which you are referring to. It is impossible to make a trade based on that.
If you bet on uncertain things, this is called gambling.
You wrote you want to invest.
But i donīt really know where to start and how much capital is needed to start trading stocks in a serious and profitable way.
thanks in advance.
Ignored
It`s a complex matter. My advice is that you decide for now that you are not yet sure how to do this and that you will decide after you read different things about investing by different people.
I assume that at some point you will come across something where you intuitively have the feeling that this is plausible and makes sense for you. You should remain critical and always think for yourself (it`s also your money that you put on the line) but if you have the this-might-be-it-feeling you should try that out (learn more, demo trade).
Don`t invest in anything you do not fully understand. Means: You should understand what the company does. If they do well. Do they have the right products for their market? Will they have the right product for tomorrow`s market? (=good management?)
Is the market they are in healthy? Are they in a branch of industry that is growing (like greentech for example)? Will there be potential problems (airlines and future requirements to pay for their emissions...)?
Does the company have too much debt?
How do they do in comparison to competition?
Not so complex?
You also have to take into account that stock prices are allegedly manipulated (of course I don`t know for sure) by high frequency trading (I propose you look that up at wikipedia.org) that Goldman Sachs and other investment banks do.
Another factor is that stock prices are often moving up and down again. If you buy and hold you might after a few years be where you started from.
Funds could be an interesting alternative for private investors.
Of course here too you have to choose.
There are ETFs which are mostly un-managed funds. (exchange-traded funds - see wikipedia).
And then there are actively managed funds.
I personally tend to be more interested in managed funds.
You still have to put work into research. There are all kinds of strategies and markets these funds are investing in.
The focus might be on things so diverse as the region (emerging markets or Scandinavia (stability)) or company size (small caps = small companies could gain dramatically in value if they have a unique product, could be bought by a bigger corporation (=jackpot) but also go bankrupt more easily) or dividends or whatever.
You should always look at the long-term charts on any instrument (stock or fund) you are interested in and read a lot about the people who are responsible for it`s success (managers of the company or fund).
If i were you, the first step to become a successful trader is to join the house. From there, u will be able to learn successful traders trade and make friends with them.
