Do you think the company will grow? Grow with them by investing in the company.
How does investing and trading work?
Open an account with the broker you are comfortable with.
Learn to read and find the right information about investing.
Study the basics of technical analysis, read the time and price charts.
Practice investing with a demo account and then with a real account.
HOW TO START?
STEP ONE: OPEN A TRADING ACCOUNT
Sorry if we seem to be stating the obvious, but you never know (remember the person who did everything except to plug it in to set up his new computer). Find a broker online and open a brokerage account. Even if you already own a personal account, keeping a professional trading account separate is not a bad idea. The IQ option, the easiest platform (broker) to use, a FREE demo account, and CHAT are highly recommended, where you can talk about investing with others. The IQ Option amazed us very much.
STEP TWO: LEARN TO READ
Articles in financials. Books for stock markets. Tutorials on websites. There’s a wealth of data out there, much of it cheap to tap. And do not concentrate too narrowly on one single aspect of the game of trading. Instead, at this time, study everything market-wise, including ideas and concepts that you don’t feel are especially relevant. Trading launches a journey that often winds up at the starting line at a destination not anticipated. Your broad and detailed market background, even if you think you know exactly where you’re going right now, will come in handy again and again.
STEP THREE: LEARN TO ANALYZE
Study the basics of technical analysis and, in all time frames, look at price charts, thousands of them. You may believe that fundamental analysis provides a better path to profits because it tracks growth curves and revenue streams, but traders live and die from the price action that diverges sharply from underlying fundamentals. Do not stop reading company spreadsheets, because those who ignore them offer a trading edge over them.
STEP FOUR: PRACTISE TRADING
Now it’s time to get your feet wet without giving up your interest in trading. Paper trading, aka virtual trading, provides a perfect solution that enables the neophyte to follow market actions in real-time, making purchasing and selling decisions that form the outline of a theoretical record of performance. It usually involves the use of a simulator of the stock market that has the look and feel of the performance of an actual stock exchange. Using different holding periods and strategies, make lots of trades, and then analyze the results for obvious flaws.
STEP FIVE: LEARN OTHER WAYS TO LEARN
While experience is a good teacher, as you continue your business career, don’t forget about additional education. Classes can be beneficial, whether online or in-person, and you can find them at levels ranging from novice to pro (with advice on how to analyze the above analytical charts, for example). More specialized seminars can provide valuable insight into the overall market and specific investment strategies — often conducted by a professional trader. Most concentrate on a particular type of asset, a specific market aspect, or a trading technique. Some may be scholarly, and others may be more like workshops where you actively take positions, test strategies for entry and exit, and other exercises. Now it’s time to take an action, good luck!
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Originally published at https://www.cashflowtip.com.