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Trading Secrets Revealed 2

Our second trading secrets revealed article looks at a great way to get into your first trades by using the knowledge you already have on hand in a safe and legal way. It is important to always seek legal advice when engaging in any acts that could even possibly be deemed to have any kind of a legal grey area.

Trading Secret #2 Revealed

If you had $10,000 right now to invest in the market, what would you invest it in? Where would be the best place to put your money? The answer may be closer than you think. When you are first starting out in trading all of the information and numbers can look like Greek. The best thing in these situations is to keep to the old KISS principal and Keep It Simple Silly! While you are learning the ropes of how the whole market day trading thing works why not stick to industries that you are familiar with and that you have some specialist or insider knowledge of? This does not mean that you should become an insider trader because as we all know this is illegal. However it is not illegal to trade with knowledge you have gleaned from 10 or 20 years in an industry - it only becomes illegal when you use timely company information not generally available to the public (such as hearing from a Managing Director that the company will be closing down 10 branches in the next 2 months) for your own personal gain. If you are not sure on what insider trading is and whether you are accidentally engaging in it you should talk to your lawyer to get a full run down of all of the facts.

What's the Big Secret About Using What I Already Know?

Often when people have their first trade day they think that they should become instant experts on every industry - especially the industries where the 'big dollars' are made, such as mining and finance. However if you do not know anything about these industries then you are not just learning about market day trading but also trying to learn everything about new industries that other people have entire university degrees to understand! While you might not be a finance expert you probably do have knowledge in some specialist area. Perhaps you have worked in aviation previously. Or maybe you were involved in the printing industry. Think about the jobs you have had and the specialist knowledge you might have and while you are young in the number of trade day you have gone through you can bring the sage knowledge of someone who has been in the industry to the trade. Who knows, by doing things this way you may even discover little know, cheap stocks that have high returns.

What Industry Should I Trade In?

As we have said, an industry that you know about is a great place to start - just remain aware of the legal ramifications of insider trading and check with your lawyer before doing anything that might have any kind of a grey area. If you do not feel that you have particular knowledge of any area then you are probably just not looking hard enough! If it is not an area you have worked in, perhaps there is an area that you have a particular interest in? These days companies of all kinds trade day markets so even if you are interested in horses or personal development there is a chance you can find a company to suit your interests.

When trading it is always important that you do things that are comfortable for you to begin with. While you are still learning the ropes of day trading, working with knowledge you already have is a great idea. As you become more knowledgeable and confident you can begin to expand your interests into other areas and profit from diversification of your portfolio!