Millions of people make a sizeable profit from the stock market each year. You might not realize it, but investment pensions take advantage of the stock market. It’s possible for people like you and I to do so as well but on a smaller scale. After all, we don’t usually have a few million to invest!
Of course, the stock market can be somewhat scary to a beginner. To be honest, the process of buying and selling shares isn’t hard. The challenging part is knowing when to do so. In today’s article, I will share with you some tips on how you can get started trading on the stock market.
How to start trading
To start making some money on the stock market, you need to use a broker. Their job is to manage the acquisition and sale of shares on your behalf. In return, they charge a fee for their services. The prices charged will depend on which broker you use.
If you’re a smartphone user, it’s possible to buy and sell shares for free! How? By using an innovative app called Robinhood! Take a look at http://www.tradefromhome.org/you-have-to-check-out-the-robinhood-app/ for further details.
If you prefer to use a computer, there are many online brokers you can use. The advantage of browser-based trading is you can do it from anywhere in the world.
Analyzing the market
So far you’ve decided how to trade (i.e. on your computer or smartphone). The next step is to determine which companies will make you a profit.
No-one can answer that question because the market changes all the time. One day a company might be in profit, the next it might lose its value. The only thing you can do is analyze which companies appear to be the strongest on the market.
What you should also know is that financial news can affect the value of shares. For instance, let’s say you want to invest in Apple. When they announce a new iPhone model, share prices might go up just before its unveiling. But, if it’s a disappointing new model, share prices will tumble after the announcement.
Profiting from the stock market is all about timing. I recommend spending some time doing test trades before investing any real money. Plenty of brokers offer free demo accounts where you can use “virtual” money to trade.
You should also subscribe to a service that gives you live stock market charts. One service you could use is https://www.tradingview.com, although there are plenty available.
Create a journal
It doesn’t matter whether you are trading in company shares, Forex or binary options. What does matter is you keep a journal of your sales and purchases.
It’s also important to log specific details about each transaction. For instance, the date, time, and type of trade are essential. As are the reasons why you decided to do those particular trades.
You may also wish to make a note of the price at the time you bought or sold your trade. That way, you can check the performance of your trades at a later stage.