Learn how to trade the financial markets

Why trade the markets?

There are many businesses all over the world which use the financial markets to buy and sell products to meet their needs. At the same, there are masses of individuals and organisations who buy and sell the same financial products purely because they want to make a profit from the changing prices.

If you have cash in a high interest bank account or a managed long-term savings plan, chances are, your money is being used for trading. The money may be pooled into a larger fund which your bank uses to trade the markets and raise more cash (interest) for you, the bank and other investors.

But instead of trading in this ‘passive’ way, more and more people are taking a more active role in helping their money grow, by trading directly on the financial markets themselves. While trading is generally riskier than leaving money in a bank, it does give people the opportunity to earn more money than they would otherwise gain through interest on their savings.

It's not just the 'professionals' who can make money through trading. Anyone, with a little study and practice, can develop trading skills and learn how to minimise their risks. Trading can be a rewarding way for you to make better returns on your cash. But remember that trading could also lead to losses. If you are thinking of giving trading a go, you should learn the basics and first practice trading with play money. When you are ready to trade for real, you should begin with small amounts and only trade with money you can afford to lose.