The equity market is the stronghold of the global economy and the core of any smart investment strategy. The global stock market is worth approximately $ 90 trillion, with hundreds of trillion dollars in stocks being bought, sold, traded, and speculated daily.
First and foremost, you should know what stock trading is, as well as some key terms about the stock market. Basically, stock trading is the act of buying and selling the shares of a particular company or company.
When you buy a share of stock from a company, you own a small part of that company. The stock of any company will rise and fall according to a large number of factors. The goal of a stock trader is to buy the best stocks at the right time and then sell them for a profit.
Veteran and novice traders alike adhere to trading strategies to help them stay afloat and build their portfolio. There is no strategy that guarantees you profits when it comes to trading stocks, however, there are some that may work for you, depending on what type of trader you are.
Day Trading
Basically, day trading is the practice of buying and selling an asset, such as a stock, in a single day. The goal is to capitalize on small fluctuations in the price of a single asset.
Day trading can be done in any market in the world and has been very popular for decades. Its objective is to monitor the purchase and sale of stocks according to the events and market developments that occur during the day, which may affect the price of this asset.
Scalping
It is a strategy used by day traders, since it focuses on progressive short-term gains and losses.
It describes the process of trying to make a large profit in a single day from daily price changes, usually focusing on buying and selling the same asset several times a day.
It is based on the idea that short-term prices change and can generate a good profit. This is a strategy that requires complete attention to detail in order for it to be properly developed.
Position Trading
This is the opposite of day trading. Position trading describes the process of buying an asset with the intention of keeping it for a long time, in the hope that it will increase in value over time.
People who are called position traders can hold an asset for several months or even years, usually executing less than a dozen trades a year. Although this is a strategy that requires a lot of patience, it can be a good investment decision and you will see it pay off in the long run.
Swing Trading
It is described as a trading strategy with a medium-term forecast. Swing traders will typically hold a stock for a couple of days or weeks, seeking to generate profits from significant price changes that are expected to occur during this specific period.
For swing traders, highly volatile stocks that show a lot of movement are preferred. Swing trading comes with many risks, due to the vulnerability of the investor’s position, but the payouts can be massive when executed correctly.
Best Sites to Trade Stocks
If you are looking for an online stockbroker, there are a number of websites that have a prominent reputation for transparency, efficiency, quality of customer service, and value for money. Here are some of the top rated stock trading sites.
Fidelity
Simply the most respected stock trading platform in the industry. Fidelity clients have the benefit of accessing the best financial expertise in the world, with countless resources on the platform to assist aspiring traders. With thousands of employees around the world, Fidelity offers first-class services at affordable prices.
Robin Hood
Robin Hood is a millennial-friendly and technology-focused platform that offers commission-free trading. The website is easy to use and allows you to see all your investments in one place, while simultaneously executing trades instantly in a wide range of markets. Robin Hood is ideal for those looking for a simple interface and no trading fees.
eToro
This is your typical scandalous new guy. eToro is flashy and ostentatious, but it also provides you with an incredible brokerage service, allowing its clients to trade thousands of different stocks and assets in one place. For those looking to invest in unconventional stocks, eToro is sure to have something for you.
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