A Guide to Trading Stocks Online

Posted by alvina on May 31st, 2017

Online trading is when you buy and sell orders for securities or currencies through an internetday trading platform. You can trade CFD's, stock opinions, futures, bonds, and Forex. When you trade shares online,you can make incredibleprofits.
To trade online you need to start with the following:

Opening an account

When you decide to open an online market account you need to look for the most discounted brokerage, a service that will allow you to trade the securities online.

Practice your trading

There are numerous free seminars provided for traders on how to trade CFDs: How to trade stock, how to trade shares, etc. There are demos that use play money to assist with training traders on how to trade without a risk.

Time to buy

Once you have trained accurately and are ready to make a trade, you can simply opt to buy what you have purchased or sold stock at a current price.

Understand the price

The stocks offered usually have two different quotes, which are the bidding price and the asking price. The highest amount the buyer is willing to pay for any given stock is referred to as the bidding price, while the slightly higher asking price is the lowest asking price that a seller will agree to.

Advanced orders

When you are fully equipped with online trading, you can move onto advanced options in which you can specify prices you are willing to pay for orders.

Once you have learned to trade online, the next is to learn to research and choose the best possible stock. Fundamental analysis is the first step, which is reliant on a company’s annual/ monthly financial reports andon public statements which is then used by traders to gage the health status of the business. Other financial documents that can be used are income statements, yearly of quarterly earnings and any new releases from the company are essential in analyzing a company’s health status.

The second step is technical analysis, which has gained wide reception as it has not been widely practiced. Most traders have opted to use both the fundamental and technical analysis,which means that when you choose a company you should opt for one with researched fundamentals and then refer to the technical analysis trading should the trade call for it. The best option is to always research the company before opting to trade for it.