A modern stock exchange appears to be an electronic system in which currency, securities as well as other assets are traded. As a rule, pricing on the stock exchange is carried out through the analysis of counter orders. The trader receives profit in the form of the difference between the purchase price and the sale price of financial instruments. An extra source of passive income in the form of dividends is also possible for stock traders. Work on the stock exchange is carried out through the conclusion of transactions with the direct participation of an intermediary, which is a broker. Specialized brokerage companies provide access to trading. If you stick with EXANTE started by Anatoly Knyazev, you will not regret.
Opting for the right broker
For a successful start of work on the stock exchange, a trader needs to choose a broker who will become his guide in the world of stock trading. Finding a good broker is about 50% success in this business since the probability of reaching a profit without a reliable and professional intermediary is almost impossible. Convenience in the process of concluding transactions online depends on the level of technological equipment and professionalism of the chosen broker. The level of a trader’s earnings depends on the choice of a dealing center. Therefore, before concluding a cooperation agreement it is necessary to pay attention to the functionality and level of convenience of the software provided, analytical reports offered by the company, as well as a list of resources necessary to monitor the market situation. You are welcome to proceed with looking through this informative EXANTE broker review to discover more on the subject.
Stock trading for dummies
After going through all the formalities at the stage of choosing a broker, a novice trader needs to learn how to assess the situation in the stock market. As a rule, technical and fundamental analysis is used for this purpose. In the first case, we are talking about the analysis of quotes of assets in dynamics, and in the second, we mean the study of the values of fundamental indicators like stock indices, trade balances, interest rates as well as other crucial indicators. When working with the EXANTE brokerage company, you will also have to rely on fundamental and technical analysis to make the most of your stock trading.
You can’t do without a clear plan
The main point of working on the stock exchange is the need to choose a clear plan of action. Before getting down to trading stocks, the trader will require choosing one of the fundamental strategies or concentrate on working with indicators that are attached to the charts of stock exchange quotes. Separate technical analysis strategies also involve the use of some analytical data without the use of price charts. Ultimately, such indicators as the amount of capital, duration of trading and the number of transactions are determined by the type of strategy chosen.
Online stock trading
Actual work on the stock exchange begins with filing an application to open a transaction with the aim of selling or buying a chosen asset. Until the transaction is completed, a certain market order is attached to it, and the trading position acquires an open status. As a rule, transactions are completed automatically. It occurs when orders are triggered, limiting the size of the maximum allowable profit or maximum allowable loss. When you open a sell position, it ends with a purchase or vice versa. If the trader acts as correctly as possible, the transaction closes with a profit. For beginners who make many mistakes and don’t understand how to trade on the stock exchange, almost all brokers extend a helping hand in the form of paid or free courses, webinars, seminars, and extra educational literature. You can count on complete assistance if you stick with the EXANTE broker.
Acting as a bear on the stock exchange
The stance of so-called «bears» when playing on the stock exchange can be characterized as selling of an asset during its fall in price, followed by the acquisition of a similar amount of it at a lower price. As a rule, novice traders immediately understand what a bull trading is when an asset is purchased when it’s getting more expensive, although there’s nothing difficult in the conclusion of transactions in the reverse order. Let’s assume you note the price begins to decline after reaching the next peak. You make a sale transaction, which remains open until a further decline in quotations begins. With a significant reduction in the value of the asset, you acquire a similar amount of currency at a lower price, thus making a profit in the form of a price difference.
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