How to succeed trading Stocks
Stock trading is fun, but not everyone who reads this blog is experienced traders. Therefore, it is appropriate with a course on trading stocks here!
There's not difficult to make money in stocks. Unfortunately it's not so hard to lose money on stocks either.
The trick is to master stock trading in such a way that it is possible to achieve a positive return over time. Losing money is almost inevitable, especially if you are doing high frequency stock trading (ie that you buy and sell stocks frequently).
Select a stockbroker online
There are many stock brokers to choose from. Some have relatively high commissions and other fees, while others are virtually free to use. In addition, there is considerable variation in commerce solution, ie the website or application you use to buy and sell shares.
AvaTrade is a good side to trading. Here you can buy a variety of securities, including US-, british- and foreign shares, CFD (contracts for difference), vlauta, commodity securities and exchange-traded funds. Besides, you can trade in indexes (such as OBX on the Oslo Stock Exchange).
Stock Market: What direction it moves?
Anything you can start with as stock speculator, is to look at the stock market in whole. Not necessarily the world market, but for example, focus on one segment. Feel free to use the Oslo Børs or OBX, and observe which direction the market moves. It either goes up (called Bull market), down (kellse Bear Market) or sideways.
Shorting: Trading for pessimists
It is possible to make money on stocks that go down in value. A financial crisis is a superb moment for shorting. The advantage of shorting is that you get opportunities to make money even when the market goes down. The downside is that you theoretically could lose all the money.
How to start making money in stock trading?
It requires both knowledge and capital to make money in stocks. If the goal is to "get rich" you must first start with much money. You will not get rich on stocks if you start with only 500, but even then only small sums of money is a start.
There are examples of stocks that have risen extremely high in value, but there is enough unfortunately a bit hard to hit target on these big winners.
Equity Strategies and Analysis
The best strategy is often to invest in stocks that are rising steadily, solid companies that have a good stock history. Another option is to invest in some more volatile stocks (where the share price volatility within a shorter period). It can often be a bit more risky.
Whatever you have to do preparatory work and analysis company. There are two primary forms of analysis, technical analysis and fundamental analysis.
- Technical analysis involves analyzing stock prices in themselves (history of share purchases and sales).
- Fundamental analysis involves studying the company itself and the economic environment around the company - such as accounting and stock exchange announcements, developments of competitors and political conditions, just to name a few.
It is best to learn a little of both these techniques, fundamental and technical analysis. The more you can start is to pick out one company, and as you study this. Look at the stock history and learn to know the company.
Practice makes perfect, also in stock trading
The best way to learn stock trading is enough through exercise. Of course you can pick up a lot of useful knowledge in the stock books, but no practical experience, it is difficult to find a use for the theory.
start the first to try your hand in the stock market, often more small sums of money first. As long as you only risk what you can afford to lose should go very smoothly.
Try trading now
Try trading for free using AvaTrade. The type of stock trading you can try here is CFD trading, which gives you many possibilities, for example you shorting stocks (make money when the stock price falls) and you can trade on margin (make more money without increasing your investments). Any profit you gain is yours to keep.