Is Stock Trading Right For You? - Pros and Cons

Not everyone is fit for a high stress environment where things can change in a New York minute. If you are thinking about trading stocks there a few things you should consider before you dive in head first.

Here are the pros of why you should invest in the stock market

• Return On Investment - The highest returns come from investing in a stock that is in its beginning stages. You have to find a stock that is most likely to gain investors. Think about it like this, if you would have invested in Google, in its earliest stages of growth, you would have been a millionaire by now. Find a product or company that seems like they will do will and invest in it as early as possible.

• Constantly Changing - If you are someone who hates repetition, loves frequently changing activities, and loves to gamble, stock trading might be for you. It's a business that is changing every day and for anyone that thinks they have got it mastered needs a reality check. Just when you think you've spotted the trend, it could shift the very next day and give you a run for your money.

• Work From Home - The great think about the stock market today is that everything can be done online or with software and a strong internet connection. The great thing about online is that it can be accessed from anywhere. Not only can you work from home but you can also work from anywhere that has a strong internet connection.

Here are the cons of why you shouldn't invest in the stock market

• High Starting Costs - Trading in the stock market has it benefits but start-up costs are not one of them. To get into trading and actually stand a chance at making money is tough if you don't already have a high bank roll to start with. Some trading firms on the lower end want you to start with at least $2,000 dollars, most want you to be able to at least start with $15,000 dollars to be able to see a return on your investment.

• Trend Spotting - It takes a certain amount of intuitive nature to be able to gauge whether a stock is going to rise or fall. Some of the best traders in the world are still perfecting trend spotting methods. There are software applications that use algorithms to spot trends but software doesn't have the unique intuition that a 30 year stock trader might have, it can only gauge rises and falls by what has happened in the past and then applying it to today. Even if you are a naturally intuitive person, this can still be a difficult task for you.

These are the Pros of why you should invest in the S&P 500 E-mini:

• Traded Online in a completely electronic environment, making traders even on most playing fields, whether you are trading 15 contracts or 1500.

• Simplified futures contracts - Decreases the need to track numerous charts

• Cost's less to get started than traditional markets - Buyers can get started for as low as $2500 dollars.

These are the Cons of why you might want to rethink investing in the S&P 500 E-mini:

• Slower Market - If you are someone that likes a lot of action, all the time, then day trading might not be for you. There are limits of how long and how much you can trade in a single day.

• The electronic environment is a pro and a con because there is such a thing as, "trading too fast". If you have even one day where the market doesn't go your way, trading too quickly could also make you lose money quickly.

• Competition - Almost half of all trading that is going on in an electronic environment is run by algorithms. Meaning, computers that can find patterns in the market and matches those patters to turn into dollar signs. The competition is stiff but it is still possible to profit in this market, not all algorithms work according to plan.

Make sure that you are confident that this is the type of business you want to get into. Trading stocks is not something that you can just learn overnight, even with the best teachers in the industry. If you have the extra money to throw around and you're willing to take the risk that comes along with it then, you should definitely think about getting into the stock trading game. While everyone else is waiting to make a decision, take your first step and start trading today. What have you got to lose? It's only money.