Why Trade Stock or ETF?

May 14, 2020

Participate – Stocks are an exciting way to participate in a growing economy and, particularly, in stocks you find interesting or innovative. When an economy is growing, company earnings can increase, jobs are created and people with secure good paying jobs are more likely to invest in stocks and mutual funds which can help drive stock prices higher.

Growth – Stocks are also a good way to stay ahead of inflation and grow retirement savings. Historically, stocks have increased in value 7 to 10 percent on average per year, against an average inflation rate of 2 to 4 percent. Stocks don’t go up every year, but over time stocks have proven to be a consistently good investment.

Efficient Markets – Stocks are easy to buy and easy to sell as trading action is efficient with so many participants in the stock market every day, prices are generally fair, and there is generally enough trading volume of buyers and sellers to get in and out of most positions easily if you trade commonly known companies

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See also

Introduction to Day Trading

Introduction to Day Trading

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Introduction to Day Trading

Day Trading Requirements

Market BasicsStocks & ETFsThe rules adopt the term “pattern day trader,” which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days,...

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Introduction to Day Trading

Why Day Trading Margin Requirements are Important

Market BasicsStocks & ETFsThe primary purpose of the day-trading margin rules is to require that certain levels of equity be deposited and maintained in day-trading accounts, and that these levels be sufficient to support the risks associated with...

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