How to start trading stocks
Today, securities of various enterprises continue to be the leading exchange asset used for active speculation. The answer to the question of how to make money on shares is a whole science, which is learned in the commonwealth of theory and practice. However, there are several basic rules that increase the probability of successful transactions. Knowing these patterns and techniques is the basic platform for a successful trader’s career.
Introduction to general theory of securities trading
Like all stock exchange segments, this market is influenced by many objective factors. Equity trading for beginners and experienced traders is an unavoidable risk, and not to take it into account means an imminent defeat. Therefore, you should immediately pay attention to the following events, which can significantly change the dynamics of even the most stable quote:
- important news of the world economy and politics;
- reports from the Central Banks and Employment Committees of the leading powers;
- fluctuations in the rates of the leading currencies;
- mergers, acquisitions, expansion, release of new models, increase in trading assortment, mastering of new directions by the enterprises which shares in trader’s portfolio;
- annual report of the company which securities are taken into operation;
- distributed deliberately « insider » information – false rumors, news, analytics designed to reduce the value of specific shares.
It should be understood that the stock market is the most dynamic situation, which can inflate the price of shares to heaven or vice versa – to turn them into an ordinary paper. Therefore, before you start buying such assets, you should immediately decide on the following circumstances:
- Investment terms – it is possible to buy shares of a large company and keep them for 10 years, receiving dividends and considering such an operation as a long-term investment of extra money. Or it is possible to buy and sell dynamic assets every day, anticipating the movement of quotations and getting regular profit at the rate difference;
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the amount of investment that you are willing to lose without fatal financial and moral injury in the event of a complete collapse;
the nature and extent of the risks you are willing to take in pursuit of profit. This is a very important point, because you can earn a little with almost zero risks, or you can put everything on the line and burn out once and for all; - the right brokerage platform with a small commission and a good reputation as a responsible and reliable broker. Today, many large intermediaries between exchanges and traders offer free training programs and various bonuses; good choice would be barclay stone broker, there your money will be in safe!
- It is necessary to carefully study the behavior of the security over long periods of time, comparing the world events, industry news with changes in quotations. On the basis of such analysis it is necessary to build your own plan of action, be sure to define the upper and lower limits of the rate, at which to close the position.
Today, stock trading online, as at all times, requires a trader to be calm and calm, and the most accurate calculation. It is clear that with active daily trading it is very difficult to completely eliminate the emotional factor. But if you act strictly according to the planned plan, success is bound to become a permanent part of your work.