Almost everyone has heard of stocks and trading. Whether it be a way to invest, gain more money, or a new hobby, this is a way to profit if you know enough about shares and stocks and pace yourself when it comes to trading itself.
Here, we want to give you the necessary information about the stock market, how it works, and the main things you should know about.
- Everyone has their trading strategy
Once you start learning about the stock market, you will see that a particular strategy is required to trade smartly. Of course, you should tweak it according to your way of life, what you want, how you look at money and your end goal.
Trading stocks can be of profit for you if you have a steady income. You will usually open a trading account first, which you will use for trading only. Treat it as an investment, and don’t trade big until you have enough knowledge. Pay attention to your experience and also how quick you are at learning about world events.
- Start learning
People who complain a lot about stocks being a fraud are the ones who have been misled because of lack of research. They started on a whim and didn’t think it through. It’s important to start small, so you can learn from real examples, but not lose much. If you fail – not a big deal, if you gain – great, keep going!
On the internet, you have a lot of information about the stock market and how it works. Stay away from flashy websites that offer you the world. You can find courses on trading on certified teaching websites and learn a lot from that. Of course, going into trading and working with a certified broker can provide you with even more knowledge. Consider it an option once you’ve gone through the basics.
You can open a demo account first, but if you are the type to forget that you will trade with real money soon quickly, maybe it’s not the best option for you. Take some and then decide whether you want to start trading with real money right away, or start with a demo account, giving you a sense of what the stock market and trades look like.
- Choosing the right broker
Like we said before, you should prioritize being patient and putting your risks on a minimum. Choosing a broker is also a significant investment in the future. You should check his background, and that should be quickly done online. Pay attention to the energy between you two – if you feel comfortable with the broker, and feel you can trust him, stay with him for a while. You don’t have to trade right away, but learn from him and use all the knowledge. Good brokers want their clients to succeed.
- See what looks interesting for trading
It’s not that easy, although it seems like it. Check a couple of companies you find interesting and see how they stand on the market. Research how they work, how much they earn, and if they are a trustworthy company. Your broker can help you with that part, as well.
Follow any news related to the company so you can see how it progresses and learn about its history. If you are going to invest in their stocks, you should know what you are investing in. Don’t pick too many stocks, though. One is enough, at the beginning.
- Be aware of trading hours
Every trader must be mindful of trading hours on diverse stock exchanges. Closing time might differ, but they are usually closing in the evening. Exceptions are only holidays. You can generally trade stocks during the day, which brings a sense of order and efficiency to the market.
You should be familiar with leading stock exchanges such as Nasdaq, London Stock Exchange, NY Stock Exchange, etc. Trading is made from Monday to Friday, and on the weekends, traders are usually speculating what to expect on Monday, and what companies will state if there are some significant changes on the way. Here are some trading hours, as a schedule:
The United States:
- NYSE (The New York Stock Exchange) normally trades from 9:30 am to 4 pm EST.
- Nasdaq tends to operate almost the same, but since it’s a digital marketplace, there are trading hours before regular ones, from 4 am to 9:30 am EST, then we have the standard time after-hours are from 4 pm to 8 pm EST.
Canada trades from 9:30 am their time to 4 pm.
The London Stock Exchange starts working at 8 am (local time) and stops at 4:30 pm.
The Paris stock exchange is called Euronext, and they operate from 9 am to 5:30 pm, and the Swiss Exchange works the same.
The Shanghai Stock Exchange starts at 9:30 am and closes at 4 pm their time. There is a lunch period from 11:30 am to 1 pm.
Tokyo Exchange starts at 9 am (local time) and closes at 3 pm. There is a lunch period from 11:30 am to 1 pm. A lunch break occurs from 11:30 am to 1 pm, as well.
It operates the same in Hong Kong, but the lunch break is from 12 pm to 1 pm.
Now that you picked up some basics, you can pinpoint what’s important to you, what you should check and learn more about, and save yourself from some beginner’s mistakes. Once you become a trader, you will see how your pattern will change over time, you will have a plan, a good broker, and wish you never stop educating yourself about this matter. Don’t be scared to reach out for more information, or take your time. It’s always better than to rush into things. Good luck with buying and selling shares!