By Ewan N MacLeod
Most people are aware that you can potentially earn a lot of money through Internet trading and investing, all from the comfort of your own home. However, here are 8 reasons why you should be very careful in this area.
* Internet trading is a very specialized market, and you need to have a lot of knowledge to really understand what you are doing and the risks involved.
* You first need to have some money to invest, and you could lose all of it. The more you risk, the more you could win, but equally the more you could lose.
* Many trading investments are derivatives, meaning that the money you put down is only a deposit. You actually control a much larger sum (like ten times more!) and you could lose all this money if luck goes against you.
* All trading systems involve a strong element of luck. Anyone can get lucky a few times, but betting your future on consistent luck is something that only gamblers and losers do.
* Trading on the Internet is a zero-sum gain. If you win money, it is generally because someone else on the other side of the trade has lost money. You are making money out of someone else's misfortune.
* Unexpected events can happen so easily in this unpredictable and uncertain world. Unexpected events mean that the market can suddenly turn against you, causing you to lose your fortune just as quickly and easily as you could gain it.
* Much of trading is little more than gambling. You are essentially betting on the outcome of what you hope will happen.
* People who have made serious money through trading have done so because they have risked serious amounts of money. In other words, they bet big and the bet paid off. They could just have easily lost big.
However, fortunes can be made reliably and consistently on the Internet - but Internet trading is not the best way to do it. Instead, the Internet is an immense market that is still growing and is ripe for individuals earning a steady income through the principles of Internet marketing. These can easily be learned by anyone who is computer literate. So why bet on luck through Internet trading, when you can rely on systems with a solid foundation and which are just as easy?
Ewan N MacLeod is an expert on Internet marketing, profiting from the Internet revolution, and generating a passive income from the Internet. His blog site http://passive-net-income.blogspot.com/ contains a wealth of advice on how individuals can profit from the Internet, how to generate an income from it, and how to avoid the scams and pitfalls along the way. If you want to earn an extra income from the Internet, or learn the secrets of Internet marketing, make sure you visit his blog. It's the one site you can't afford to miss!