Shares/Stock 2 Things Beginners Should Know About Stock Trading

moonchild

VIP Contributor
As a beginner stock trader, there are some basic things you have to know the basic and in this article, we will be talking about two basic things you are suppose to know, let's get going:

1- Understand the stock market and how it works. The stock market is a marketplace where publicly traded companies sell shares of their stock to investors. When you buy a share of stock, you become a shareholder in that company and own a small piece of it. The value of a company's stock is determined by the demand for it, which is influenced by a variety of factors including the company's financial performance, economic conditions, and market trends.

2- Determine your investment strategy and risk tolerance. Before you start investing in stocks, it's important to determine your investment goals and how much risk you are comfortable taking on. Are you investing for the long term or for short-term gains? Do you want to build a diverse portfolio with a mix of stocks, or do you prefer to focus on a specific sector or industry? Your investment strategy and risk tolerance will help guide your decision-making when it comes to choosing the right stocks for your portfolio.

If you are interested in knowing more, please comment below.
 

Suba

Moderator
Staff member
Your thread is too concise, so it will be difficult for beginners to understand. There are several important things that novice stock traders must learn and understand, including:
1. Take time
Beginners should take the time to learn about stocks and their analysis and practice with a demo account and start trading with small amounts first.
2. Diligently read the news
To become a trader or investor, you must diligently read the news, both economic and political, because it will affect stock prices.
3. Check Stock Liquidity
Stock liquidity is shares that are actively traded, lots of order queues, or you can also check stock lots and
split bid offer.
 

Caramelle

Active member
A stock market is a place where investors can buy stocks owned by other investors or sell stocks they own to other investors. It is also known as the secondary market. The sellers are investors themselves who want to part with their stocks most frequently because those stocks are selling at a higher price than their original acquisition price. A stock exchange typically facilitates these transactions. The issuing company does not acquire funds through these trading activities as the stocks being traded have already been issued previously through the primary market.

The primary market is where stock companies offer their shares directly to the public usually through an underwriter. This is where they raise funds in exchange for ownership shares. Examples are initial public offerings (IPOs).

In both types of markets, investors need to do a fair amount of research on the company and the industry to which it belongs. They must be well-informed about market trends as well as socio-economic and political trends. Fortunately, nowadays, there are websites that provide information about market trends that investors may need when making stock investing decisions. There are also stock investing simulation apps that potential investors can use to practice their trading skills.
 

Yakub02

Banned
I am interested in buying stock and shares in a reputable company because it has proven to be a very safe and lucratively business. Being a shareholder can either be an ordinary shareholder or preference shareholder. An ordinary shareholder will share both profit and loss of a business. While the preference shareholder are not expected to loose his capital even if the business is run at a loss. In actual fact what should the minimum or maximum threshold that one can invest in a company?
 

Similar threads

Top