In this article the basic principles and techniques of stock trade for beginners are stated. This information surely is useful to everyone who makes the first steps in trade in stock markets. Stock trade demands from the trader the maximum concentration and possession of knowledge not below average, the price of only one mistake in stock market can be high. Therefore before you decide to begin stock trade, you will need to be trained.
Stock trade: training
It will be required to receive answers to three main questions to future investor, long before the beginning of the auction in the exchange:
• Will you trade online on the Internet or using the licensed brokers working directly at stock market?
• Will you trade long-term or in day?
• What programs and platforms should you use for exchange trade?
To understand how to begin to trade on the stock market, it is necessary to study all possible methods by which trade is carried out and to choose for yourself the most suitable.
There are several methods which help to understand how it is correct to trade at the exchange. We will tell about each of them one after another.
1. Services of the skilled expert in the sphere of the financial markets. The professional advice checked by practice and time is always much more effective than any theory. Therefore to be trained by such financier or the trader is a good reserve for the successful trading future.
2. Testing of the special software or a trading platform for conducting operations on the stock exchange is an excellent way of obtaining of necessary skills. Nevertheless, getting this software, it is necessary to be the most careful in the choice not to fall into clutches the swindlers who have sold you a low-quality product.
3. Systematic monitoring of the financial markets, the fundamental analysis, tracking of macroeconomic indicators, registration at specialized exchange forums and active participation in them, a subscription to paid and free mailings which can contain useful thematic information, all of this surely is useful in further trade.
Demo account for stock trade
Never forget that stock trade it is not cheap pleasure therefore to begin a real trade without preliminary mastering above-mentioned techniques, we will softly tell, a step is reckless and expensive. It is necessary to begin with the virtual exchange, opening of the demonstration account which will allow to fulfill strategy and obtained information in the applied way, but without risks to lose resources.
The choice of the broker to start a real trade.
The choice of the reliable broker at the exchange is one of the most important tasks which the beginning trader should solve. More than half of the success depends on the broker. The main criteria of the choice of the reliable broker for trade at the exchange for beginners the following:
• existence of the license;
• existence of positive reviews at specialized forums;
• size of the broker commission;
• flexibility and reliability of a trading platform (tool kit, quality execution of warrants);
• a wide choice of the companies whose shares are traded.
How not to be mistaken with the purchase of shares
Stock trade at the exchange requires to learn correctly analyze the company on which stocks you plan to earn. To start profitable invest and not to crash, it will be required to study specifics and tendencies of activity of at least hundred companies as a result to choose no more than ten. Further, this ten will need to make the proposal on purchase of their stocks and if on your offer will respond more than three companies in the market, it means that the price of their assets offered by you is too generous and consequently it is overestimated, and doesn’t display a real situation of affairs of the company. It is necessary to offer such price which no more than three companies would agree then to choose only one from them. Process of the choice has to be slow and verified to trifles as bears the most direct strategic appointment.
The large well-known companies should be preferred small with low capitalization, their actions have high liquidity in the market, on them there are always many news and there is a set of other data for the analysis.
For example, if the company chosen by you is located in the USA, then information about it and its actions will be obligatory on the website of the Commission on securities and the exchanges. Besides, any share trader can always address the filter of actions – to the specialized online service gathering the companies by a number of the established criteria. Usually such service paid and on it is made out a special subscription.
Stock trade: summary
Summarizing all aforesaid, we will allocate the main aspects of the auction in the exchange for beginners:
• Get a hold of basic practical knowledge with the help of training from experienced professionals and use of a demo account to start a real trade.
• Choose the reliable broker who won’t complicate, and will facilitate your trade.
• Constantly be aware of the latest world economic news, don’t stop to improve knowledge in the field of the fundamental and technical analysis.
• Base the list on stocks of the large companies and study a tendency of the movement of their price of a demo account.
• Choose the sector in which the company works selected from those that you know about.
• Use an exception method to leave one or two types of actions with the best or worst forecasts.
• Use filters of actions.
Difficult realities of modern validity constantly remind us of variability of investment climate. Willingness to keep moving forward, not stagnate, to develop as the professional, not wishing for that neither the time nor the strength to always keep abreast of the global financial system– mandatory set of actions inexorably approaching any trader to success in the stock market.