There’s no denying that hiring a stockbroker is extremely easy. Not to mention, it’s a good option if you want to invest, but you know next to nothing about how to play the stock market.
Just because something is easy doesn’t mean it’s the best idea.
Getting into the stock market isn’t as difficult as you might think, especially if you start with penny stocks. Here are three convincing reasons to fire the professional and become your own stockbroker instead.
Save, and Make, More Money
Money drives many of the decisions we make, so it should come as no surprise that it’s the number one reason why people decide to buy and sell their own stocks.
First, you’ll end up saving because you won’t have to pay steep broker commissions. You can also get out of paying for other costs that are associated with stocks, like transaction fees.
Not only will you save money, but by doing it all yourself, you also have the potential to make more money. That’s because you can take the money you would have spent on broker commissions and transaction fees and reinvest them into the market. The more money you put into stocks, the more potential they have to pay big.
More Responsive Trading
The act of buying and selling stocks isn’t what’s hard about playing the stock market. It’s about knowing which stocks to buy, which ones to sell, and when.
That’s where you’d think hiring a professional stockbroker would come in. Although it’s true that they can help you figure out which stocks to buy and sell, they aren’t always as responsive as you’d like.
The stock market can change fast. You may have mere minutes to sell a stock for the highest price, or acquire a new stock for a low price. Because a stockbroker works with many clients, he or she may be slow on the uptake.
If you do it all yourself, you can buy and sell in an instant, allowing you to make more money on the stocks you sell, and save more money on the stocks you buy.
Improve Your Investment Skills
We could all use a little more knowledge when it comes to finances. If you’re your own stockbroker, you can actually improve your investment skills:
- Learn the best times to enter and exit trades
- Learn how to better predict the market
- Understand the difference between different stock market terms
- Learn how to be comfortable taking risks
It’s your money. Shouldn’t you know exactly where it’s going? When you pay a stockbroker to do all the work for you, it’s like giving someone else your money to gamble with.
Why not gamble with your own money and have a little fun in the process! Hopefully, these three reasons have given you the excuse you need to look into the market and become your own stockbroker. You may discover that buying and selling stocks is a lot more fun than you thought!