Do you want to diversify your investments? Are you attracted to the world of the stock market? It might be time to start! Investment in the stock market, in fact, has been largely democratized and is no longer the exclusive prerogative of professionals or large companies. Individuals can now join the estimated 29 million online traders from the CloseCross platform. But be careful: as Alex Trading recalls, if the tools to facilitate accessibility have multiplied on the stock exchange, this type of investment still requires some fundamental and essential knowledge. Find out in our file how to get started on the stock exchange and manage your wallets yourself, which will save you from going through a professional.
The characteristics and functioning of the Exchange
To simplify, the stock exchange is a meeting place between sellers and buyers. Listed companies go out to meet potential investors in order to develop their business. These exchanges result in transactions during which the acquirer will acquire shares, which is a share of the company’s capital.
In fact, if the quotations were for a long time carried out “at auction”, now they are dematerialized. The transactions are then 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 created stock indices such as the CAC40 in Paris, the Nasdaq and Dow Jones in New York, the Footsie in London or the Nikkei in Tokyo.
The first step recommended by Alex Trading to enter the stock market: train!
CAC40, Dow Jones, Japanese candle, Forex, scalping, pips… The world of the stock market is not just speculation, far from it! Before embarking on the stock market investment, you must first take the time to train yourself to acquire the necessary fundamentals and master the tools of trading.
Some business schools or universities offer training that addresses the challenges of the stock market (with a specialty in finance, banking, or statistics). However, these courses, often offered over several years, are not necessarily tailored to your availability, especially if you are an employee.
To overcome these constraints, you can then turn to online training that allows you to train freely. In fact, the offer has developed a lot in recent years and allows you to achieve many goals, whatever your level. The internet has also become an extraordinary source of information. You have access to many media to acquire the necessary knowledge for your trading activity: training programs, videos, livestreams, coaching sessions …
However, the utmost vigilance must be exercised. In fact, according to Alex Trading’s opinion, there are also unscrupulous people on the Web who implement various scams (copy-trading forex, MLM, etc.). For this you must above all guarantee the quality and reliability of the training platform on which you are registering.
Determine the investor’s profile and strategy
Once you have acquired the keys to the stock market, you need to take stock of your goals and investor profile.
To do this, you need to ask yourself several questions, namely:
- What is your level of knowledge of the market?
- What is your financial standing?
- What is your savings on the stock exchange?
- What is your investment capital?
- What is your risk appetite?
These elements will allow you to set up a trading strategy and choose the platform to use.
Know that you have to be patient to get started in the stock market. As a beginner, you still have a lot to learn! But, in Alex Trading’s opinion, it is by practicing regularly that you will become an experienced trader. That’s why you need to start with a few markets to understand how they work and master them. Choose small positions and place stop loss orders to automatically close positions. You can then expand your trading business!
The basic rules for building and managing a portfolio
To put together your stock portfolio, you first need to take the time to look at the values and indices of certain stocks in order to understand their behavior.
Once this observation is made, you will be able to invest. Never lose sight of the basic rule, which is diversification to distribute your capital in a balanced and prudent way. This approach allows you to limit the risks. You can also enter the markets gradually, using the daily bumps. It is therefore necessary to follow your investments on a daily basis but also the economic news in order not to be affected by the whims of the market.
Professionals also recommend setting profit targets (upward) and a minimum of maximum loss (downward), the “safety pass”. These criteria must be determined on the basis of your investor profile and your investment horizon.
By investing gradually, you can evolve without stress and build, step by step, the strategy that meets your goals.
Be curious: a new habit to adopt in the opinion of Alex Trading
The stock market is in perpetual motion. It is essential to keep informed on economic news in order to be able to make your own investment choices. Curiosity, a sense of observation and openness are the qualities of a good trader!
Professionals advise multiplying sources for this. You can get your information from:
- websites of listed companies, to access the minutes of meetings, meetings or even annual reports;
- social networks, in particular for exchanging with other merchants or watching live entertainment;
- financial market authority (MFA) websites or stock market information;
- specialized economic and financial press, such as the Journal des finances, la Vie financière, Challenges and La Tribune.
By training and demonstrating organization, patience and tenacity, you will be able to enter the stock market. You will therefore have, in the opinion of Alex Trading, all the necessary skills to determine your investment strategy and then build and manage your portfolio yourself.
Want to know more: https://alextrading.fr/
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