Do you want to diversify your investments? Are you attracted to the world of the stock market? It might be time to get started! Indeed, investing in the stock market has been widely democratized and is no longer the exclusive prerogative of professionals or large companies. Individuals can now join the 29 million online merchants estimated by the CloseCross platform. But beware: as Alex Trading reminds us, if the tools in the stock market have multiplied to promote its accessibility, this type of investment still requires certain fundamental and essential knowledge. Find out in our file how to get started on the stock market and manage your portfolios yourself, so you don’t have to call on a professional.
The features and operation of the Stock Exchange
To simplify: the stock exchange is a meeting place between sellers and buyers. Listed companies go out to meet potential investors to develop their business. These exchanges give rise to transactions in which the buyer acquires shares, in other words a share in the capital of the company.
In fact, if for a long time the quotations were carried out “at the auction”, they are now dematerialized. Transactions are thus carried out remotely, using IT tools, and the values of the shares change continuously during the sessions.
You should know that there are several global stock exchanges. They have created stock market indices such as the CAC40 in Paris, the Nasdaq and the Dow Jones in New York, the Footsie in London or the Nikkei in Tokyo.
The first step recommended by Alex Trading to get started in the stock market: get trained!
CAC40, Dow Jones, Japanese candle, Forex, scalping, pips… The stock market world is not just speculation, far from it! Before you start investing in the stock market, take the time to train yourself to acquire the necessary fundamentals and master the trading tools.
Some business schools or universities offer courses that meet the challenges of the stock market (with specializations in finance, banking or statistics). However, these courses, which are often offered over several years, are not necessarily adapted to your availability, especially if you are an employee.
To overcome these limitations, you can then turn to online training that allows you to train freely. The offer has evolved greatly in recent years and makes it possible to achieve many objectives, regardless of your level. The internet has also become a huge source of information. You have access to a variety of media to gain the knowledge necessary for your trading activity: training programs, videos, live streams, coaching sessions…
However, it is necessary to exercise the utmost vigilance. Indeed, according to Alex Trading, the web also has unscrupulous people running various scams (copy-trading forex, MLM, etc.). Therefore, you should above all take care of the quality and seriousness of the training platform you are going to enroll in.
Determine your investor profile and strategy
Once the keys to the stock market have been acquired, it is necessary to take stock of your objectives and your investor profile.
To do this, you need to ask yourself a number of questions, namely:
- What is your level of market knowledge?
- What is your financial capacity?
- What is your savings on the stock market?
- What is your investment capital?
- What is your risk appetite?
With these elements you can set up a trading strategy and choose the platform you want to use.
Know that you need to be patient to get started in the stock market. As a beginner you still have a lot to learn! But according to Alex Trading, regular practice will make you an accomplished trader. Therefore, you should start with just a few markets to understand and master how they work. Go for small positions and place stop loss orders to close positions automatically. You can then expand your trading activity!
The basic rules for building and managing a portfolio
To build your stock market portfolio, first take the time to observe the values and indices of some securities to understand their behavior.
Once this observation is made, you can invest. Never lose sight of the basic rule, which is diversification to distribute your capital evenly and prudently. This approach allows you to limit the risks. You can also enter the markets gradually, using daily shocks. It is therefore necessary to follow your investments daily, but also the economic news in order not to suffer from the vagaries of the market.
Professionals also recommend setting profit goals (up) and a maximum loss floor (down), called the “safety floor”. These criteria are determined based on your investor profile and your investment horizon.
By investing gradually, you can evolve without stress and develop step by step the strategy that meets your objectives.
Be curious: a new habit to adopt according to Alex Trading’s opinion
The stock market is constantly moving. It is imperative that you keep up to date with economic news to make your investment choices. Curiosity, powers of observation and open-mindedness are the qualities of a good trader!
Professionals recommend multiplying resources for this. You can obtain your data from:
- websites of listed companies, to access minutes of meetings, general meetings or even annual reports;
- social networks, in particular to trade with other traders or attend live shows;
- websites of financial market authorities (AMF) or stock exchange information;
- specialized economic and financial press, such as the Journal des finances, la Vie financière, Challenges and La Tribune.
By training yourself and showing organization, patience and tenacity, you can enter the stock market. According to Alex Trading, you then have all the necessary skills to determine your investment strategy and then build and manage your portfolio yourself.
Find out more: https://alextrading.fr/
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