Stocks trading uses leverage. Leverage means you put more money into the trade and the banks that hold the stocks you buy then add to that total. This means more profit for you. Stocks trading is considered by many experienced traders as the surest way to make a good profit and there are many different theories about what is going on with the stock market. Some say it’s all about luck, some say technology, while others say the big secret is bankers trying to manipulate the price of shares to keep you tied to their stock.
Leverage makes trading with leverage very risky because you are depending on the expertise of other people to either help or hinder you. You could lose lots of money doing very little but if you are very lucky, you could make hundreds or thousands of dollars.
The role of smart money in the …