5 Tips To Trading Stocks



5 Tips to Trading Stocks
5 Tips to Trading Stocks 
The days of contact with a broker trading stocks are gone, and so are the fees associated with using this service. The XXI century has seen the arrival of the internet stock brokers that let you use their websites for free.

It is incredibly easy to create an account and start trading stocks shares for real money in less time than it takes to make a cup of tea. The only time you pay money to the stock internet is when you make a trade. However, the Commission is often less than $ 10 per trade.

I have internet trading shares for a number of years. In this article I will share what I've learned so I can reach my level of knowledge in less time than I have. Listed on the London Stock Exchange (LSE) for a long time, I keep my advice, but I advise also to do your own research. Every opportunity comes with a considerable amount of risk!


1. Internet Stock Trading


The best way to share online stock trading is. First, open a bank account if you do not have one internet. Then open an account with a stockbroker internet. Always choose a broker that is reasonably known to avoid being scammed. It uses a search engine to find articles that compare different Internet stock brokers.


Before choosing a broker, consider what you used to. If you want to share prices always go down the corridor copper lower transaction fee, but be careful to avoid monthly fees and inactivity fees. You may want additional advice of your broker on how actions, and this could be included as part of a higher Commission. Once you've chosen your agent, you can use your website to transfer funds from a bank account internet.


2. Create a list of stock trading


Not jump and trade immediately! The broker should offer a service to create a watch list of trading of the shares that interest you, so start by creating a list 20-30. If there is no facility to do this, Google Finance can be used instead (by creating a new portfolio). Select companies from various sectors (banks, retail, oil exploration, mining, etc.) with a price range. I chose the companies that had shown much movement in its recent price, thus giving the best opportunity to witness significant fluctuations in the future.

3. Day Trading Stocks


Observe the watch list at least one month. See how stock prices change every day and look at the graphs showing this movement for long periods of time. 

A method of making money is to predict the next move of a quote based on trends that can decipher. My first commercial action was an action called Croda UK (CRDA). I could see how the price had been constantly fluctuating up and down, and within two days had 5% of that investment after the Commission. I bought the stock at a low point and sell at a high point. This method of gain fluctuations only comes from the observation for a long period of time. It may be that other people go up and down constantly. Having an idea of ​​how actions in your watch list made every day.

4. Trading Stocks bounce


Another factor affecting stock prices is the mechanism rebound. A large increase or decrease a price day often see a bounce in the opposite direction the next day. After an increase this is called "profit taking", as people are selling the stock because they like the new price. This sale reduces the price. After a large decline, investors may think the market reacted too. They buy the stock because they think the new price is a bargain. It is dangerous to do this because the commercial stock could fall further. I recommend waiting for has stabilized the price before buying shares; but only if you think it is now a bargain.


5. Calculate its objectives in trading stocks


Eventually you will be able to spot deals using his assessment of the prospects of the business, fluctuations, news, rebounding and investor sentiment. Only when they have established confidence in having found a bargain should invest. Do not invest too little one stock because your benefit will be too small. 

Target profit of 5% in the first and decide if this return on investment is worthwhile.
Invest only in trading stocks than you can afford to lose, but do not take too this philosophy, and lose everything you invest rather than a percentage of that sum is very unlikely (the higher the smaller company likely it is to lose all the investment).