Online Stock Trading And How To Trade Stocks For Beginners
Many people are looking for how to trade stocks online in easy and simplified ways. It has recently become easy to trade stocks for beginners via the Internet, with just one click of a button. But it takes several steps and other procedures that we will explain in this article.
Contents
1 stock trading
2 How to trade stocks online
3 How to trade stocks for beginners
4 Choosing the best stock trading account according to the ability of the trader
5 Choosing the best online stock trading platform
6 Choosing an appropriate stock trading strategy
7 Choosing the best website and conditions for stock trading over the Internet
8 method of opening trades in the stock market for beginners
Stock trading
Stock trading simply means buying and selling shares in a company listed on the stock exchanges, whether from a mobile phone or computer, whether desktop or laptop, through the broker used for trading.
This is in order to achieve profits with the change in prices, whether by falling or rising, when using CFDs for trading.
Control over the process of managing, buying and selling shares in public companies is through a stock exchange.
In the past, stock traders used stock exchanges to buy and sell shares with other traders in what was known as a “pit trade”.
Now, traders do not have to visit the exchange. Instead, they can participate in the process of trading shares virtually through the Internet.
This is done by obtaining the appropriate broker account, and the broker is a link between each of the exchange and the trader.
An account can be opened by depositing only 1 EUR as a minimum. With investment fees they start at $0.01 per share.
The minimum transaction fee is $1 on US stocks
How to trade stocks online
Stock trading has become easy through the presence of the Internet. Individuals from all walks of life trade stocks for many different reasons, however it is up to the possibility of making additional profit and income.
Also, the majority of stock traders through the Internet buy stocks at a low price. And then sell them at a high price and then earn the difference between them.
How to trade stocks for beginners
You must have the right stock trading tools and resources in order to begin the process of sharing stock trading online. Beginners can start trading stocks through the Internet as follows:
Choosing the best stock trading account according to the ability of the trader
A trading account is a connection to all individuals who wish to trade shares. For example, in the event of a desire to buy shares in a particular company, people must be found who are willing to sell these shares.
This is the role of the broker for the traders, as it connects the trader to the stock market and other shareholders, and here it is called the “stock market”.
It enables the trader to access the trading platforms, so that they can carry out the delivery of trading orders to sellers and buyers.
This is done by contacting the stock exchange, which manages the stock market and lists the shares of companies that the trader wants to trade.
Since the broker saves the trader’s capital by trading or investing, it is necessary to choose the best broker in terms of licensing and level of security.
Choosing the best online stock trading platform
What is meant by the stock trading platform is how to set entry and exit levels for trades on the stocks that the trader chooses.
It is necessary to know how to choose the most appropriate platform for trading stocks through the Internet; Because this represents to the trader his access to all the important information and tools that he needs during trading, such as: a chart that contains the historical price of the share, the direct market prices of the company whose shares the trader trades. Technical indicators that help the trader in making the right trading decision, different tools for trading, and more.
Choosing a suitable stock trading strategy
Choosing a trading strategy helps traders to analyze stocks systematically and correctly. In order to obtain evidence indicating the trends and movements of the market and stocks after that.
In order to identify these clues, traders use several different methods of analysis, including:
*. Fundamental analysis: It is a study of company data and economic data in general.
The company’s data includes an analysis of earnings-per-share announcements, sales and operating profit, new product launches, and more.
Traders try to analyze if it is possible for the company to achieve more profits in the coming time because this could translate into a share price so that the company becomes more valuable.
*. Technical analysis: It is a study of the price in order to identify patterns of buying and selling activity that could lead to the expected entry and exit levels, and the study of the stock price is by using chart patterns, technical trading indicators and price movement, and there are several other strategies.
Choosing the best site and conditions for online stock trading
Because of the large number of different websites that provide several services to traders. The preferred site for one trader may not be preferred for others, so you must know all the features and conditions of these sites in order to select the most appropriate option among them.
How to open trades in the stock market for beginners
You can start trading stocks via a smartphone, desktop computer, or laptop once you open a trading account, whether it is a real account or a demo account, and then download the platform for trading, and this is done through the following steps:
1. Open the trading platform.
2. Open the Market Watch window by selecting the view option in the menu at the top of the platform or by pressing ctrl+m from the keyboard, after which a list of tradable symbols will appear to the left of the chart.
3. Right-clicking on the Market watch window, selecting symbols or pressing ctrl+u on your keyboard.
4. After that, a window will appear showing all the markets available to the trader. From there, he can add a wide variety of stocks to the Market Watch window by selecting the relevant stock or country and clicking on the “Show Symbol” option.
It is possible to open a trading position as follows:
1. Click on the chart with the right mouse button.
2. Choose Trading.
3. Select New Order, or press F9 on the keyboard.
4. After that, a trading ticket will be opened in order to enter the entry price, stop loss, take profit, and the lot size.
The trader can open a pending trading ticket, and set a stop loss to exit the losing trade when it reaches a certain level. This helps the trader to maintain his stock trading account capital levels.