What are trading stocks, forex, and broker?

What are trading stocks, forex, and broker?
Can anyone who knows:

What is trading stocks and how to make money with it?

What is forex and is that related to trading stocks?

What is broker and the same questions above?

Can we absolutely make money with those?

Best answer:

Answer by InspectorBudget
You most certainly have a lot to learn. Go to your local library and read up on this subject before you do anything else.

With education & understanding, you will have a much better chance of being successful.

Know better? Leave your own answer in the comments!

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  1. Ah Kiat (January 2nd, 2014 at 6:45 am)

    Hi Dynasty,

    Stock trading meaning if you think that for example Facebook share price will rise from current price say USD$ 20 and let say the next five days, the price will go up to USD$ 40, depending on how many shared you have purchased, say 50 shares and if you decided to liquidate it, you will make $ 20×50=$ 1000 and of course if let say the price will to drop to USD$ 10, then you will lose $ 10×50=$ 500.

    Forex trading is trading on currency pair such as the most popular pair EURUSD and if tomorrow Germany will to announce that they will get out from EURO Zone, and if you know the information beforehand, you can short 1 standard lot, meaning 1 pip=USD$ 10 on EURUSD and take profit at 500 pips, you will make a profit of 500pipsx$ 10=$ 5000 within hours.

    Of course both investment tools can make money only if you know how to take care of your money management to reduce your risk to the lowest. Actually in my personal forex blog, I did write something about money management on how to limit your risk if you are wrong of your trade.

    Broker is platform that you need it to buy and sell your stocks or currency pairs (Forex) and they will take commission from every trade that you have transacted. If you want to try it out, you can apply for a Forex demo account to have a feel on what is Forex trading all about and try to read up Forex trading from babypips.com or my blog. In any case, it is all Free so take full advantage of it.

    Absolutely can make money provided you can control your own psychology and have a sound money management to control your risk per trade.

    Best Regards
    Ah Kiat

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