Do people really make money out of the financial markets?

Question

I`m trying to imagine that people will sit at a chart and make a prediction that it will go up or down & make money on this. Does it really work? Are there really people out there that can make a living doing just that?

Answer 1

Yes people and bussiness do in deed make and lose money on the financial markets.

Your pension scheme if or when you get one will probabily invest in stacks and shares as well as property and gamble your investment hopeing you will get a good return.

Remember stocks can fall in price as well as go up so be carefull !

Answer 2

Have you seen the cars they drive? what do you think?

Answer 3

its not that simple.  you can make a model based on statistics and math to forecast not just up or down, but the risks involved with each decision in question.  There is a lot of money in this line of work.  You would need an advanced degree in math or stats, an undergrad degree will get you no where.

Answer 4

Yes. I know quite  a few. It's half knowledge, it's half luck.

Of course, long term the stockmarkets always rise - especially if you choose the right stock.

Real estate and natural resources are finite, and there are more and more people. Prices will keep rising.

Answer 5

nope - they do it coz its fun and they live in bins.......

course they make money - and some of the bonuses are massive for good performance..... these guys can buy cars and houses with their monthly bonuses.. never mind their annual bonuses.

ignore the guy below who says 'I know quite a few. It's half knowledge, it's half luck.' - these guys are paid megabucks coz the job is hard, hours long, and risks to the business are massive - their decisions can loose millions in an instant.

Answer 6

Of course people DO make money on the stock market. That's a strange question to ask. Usually people think that only institutions make money as they have a wider range of products to trade but it's wrong, especially for the UK. Retail investors now have access to a wide range of investment vehicles, including financial spread betting, CFDs, share trading and more. Just visit http://www.independentinvestor.co.uk and see for yourself. Some people say that you can't make money in spread betting and cfds as it's gambling and stuff... but many people speculate in financial markets and make money and there're more who try to speculate without doing any research and knowing anything, then they lose money and start blaming everybody but themselves and say that it's impossible to take money on the stock exchange. Rubbish. DO RESEARCH and some hard studying.

Answer 7

It's not a matter of "staring" at charts, it's all about analysis of trends and other trading indicators, which will give a probability of the most likely event to take place of a specific time frame i.e. that the stock/forex price will rise over the next 48 hours, and to what level those changes may occur.

You need to do some proper research, try searching Google.

Answer 8

Yes you can but you need a strategy and some strict rules. if you follow rules you can make a living with little work.

We can help you if you wanna be one of them

Answer 9

No, not really.

It depends a bit upon whom you are calling "people" in this context.

Most (small dollar) people trading in the market do it for a period of time (usually while the market  is hot-hot) until the trend turns against them and then they fade away.

You also have an industry out there selling the idea of trading as a business.  Like all things that promise big rewards for little money and effort, they attract a steady stream of interest.

Then you have the pro's.  Most pro's actually make their money some other way:  commissions & fees are the big items (they are basically salesmen).  But they sell the idea of investing in which they have some edge:  either technical or fundamental.  They also ride trends:  the hot-hot-hot guys this year aren't the same ones from 5 years ago; who aren't the same ones from 10 years ago; and you will have an entirely new crop 5 years from now.

The ones who tend more to relationships or who build a brand without investing too much in a particular trend or bottom line profit in a particular year are the ones who last.  But they also tend to sell a brand of bs:  that they have something unique that will net you a larger return over time.

There is no magic formula that will make you a fortune (or a comfortable living) in the financial market place.   Hard work, time, research, and risk.  That's it.

Answer 10

Just to add a new twist; it's a bit of knowledge, a bit of luck and a lot of inside info. With a smzll investor it's mainly luck; try sticking a pin in a list of shares!