Stocks and stock trading
Shares are assets of a company, and by buying shares can make money if the stock price rises. Here is everything you need to know to get started with stock trading.
It is not difficult to make money in stocks during boom times.
Are you a bull or a bear?
A rising stock market are called a bull market. When the market falls it is called a bear market. And if it is neither, it most be a horisontally trending market (no direction).
Shorting: Making money on stocks when the market falls
When the stock market falls, it is more challenging to make money. Then it is far from the winners, and it is difficult to select the right stocks. However, it is possible to make money in falling markets as well, using shorting.
Shorting is an option if you think that a stock will be far down, or if you think the recession (fall) in the market.
Few great brokers offering shorting of shares, while being priced cheap enough that it is feasible to monetize it, but easyMarkets is a good online broker we recommend for this type of leverage trading.
Different types of stock trading
Stocks can be traded in many different ways. The most common by far is to buy shares on a stock exchange, such as the Oslo Stock Exchange, and then sell one of these again at a later time, and hopefully at a profit.
Share CFD is also a popular option. You buy so-called contracts for difference where the shares of the underlying security at the contract. It may sound complicated, but after you have come into this so it is just as easy as regular trading.
Daytrading and active trading is a kind of stock trading where trading is close to each other in time. For example, you can buy shares in Statoil at 13:00 and sell their shares again at 1:03 p.m.. It happens all the share trading (both purchases and sales) within a period of only a few milliseconds, seconds, minutes, or at most a few hours. The advantage of daytrading is first and foremost the need to hold stocks overnight when markets are closed, and if you have a profitable strategy can achieve very high returns. It is said, however, that it is harder than daytrading trading equities in the longer term.
Share Savings is the opposite of active trading. You buy a stock that one form of savings. The stock owned like in several years, and it is not concerned with the small svingningenen in the market. Buy a stock at 18 and sell it when you retire. One can of course choose stocks that form of savings in a shorter time frame as well, but a period of 5-10 years is advisable.
Mutual is also a kind of saving, but here you do not manage your money yourself. There is a brokerage and other portfolio managers who handle the buying and selling of shares. Because there are others that manages the portfolio on behalf of its clients, it will apply relatively expensive fees. This applies also to have a good time, and recommended time horizon is at least five years and preferably more. If you have the opportunity and time to it, so it's usually much better to invest in stocks on their own than through a fund.
A stockbroker was in the "old days" a person who executed trades in the market on behalf of a customer. You as a customer can sit at one end of the phone and say you wanted to buy 5000 shares in Statoil, and then relayed broker this order to the Oslo Stock Exchange.
Today, technology has made stock trading a lot easier purely practical. You is not through another individual, but through an online broker online.
It is important to select an online broker that is both inexpensive and is good to use. easyMarkets is the online broker we recommend. Here you have no commission on equities, and you will also have free time information. Besides, you can shop more than just stocks here, they also have the opportunity to trade in currencies, commodities and stock CFDs at very good prices.
Another thing with easyMarkets is the ability to engage in shorting and leverage (up to 1:50). With such high leverage has the opportunity to make good money even if stock prices barely rise. With free real-time quotes and very good analysis tools can operate as a professional with technical analysis (training and information is available hoseasyMarkets).
Minimum deposit to open a trading account with easyMarkets is at $ 100 If you wish, you can also try a free demo of easyMarkets to find out if this might be something for you.
easyMarkets is a good online broker for you who want to trade in shares, engage in shorting and leverage, trade commodities, currencies, indices, CFD, and exchange traded funds.
Learn stock trading
The best way to learn stock trading is not reading many theoretical books. Practical experience is far more useful, so you can take the theory a bit along the way. Start by creating an account with one of said network brokers above and try your hand at different strategies.
It is not necessarily so hard to make money on stocks. Read about the companies you invest in, and always do a thorough preparation with shares you buy. Some online brokers also offer daily reports where you get infomrasjon and analysis on the market, which you can use to make trading decisions.
We recommend starting with a free demo account with easyMarkets. It comes with free real-time quotes, the possibility of technical analysis, cheap and free tradeing, and a unique opportunity to learn stock trading and trading.