Stock trading for dummies
They need to know for a successful rookie stock trading in the Forex market? Since it is not a currency, you absolutely do not need to know the basics of technical and fundamental analysis, it is not necessary to follow the rules of money management, and you absolutely can not be interested in indicators - money and so will flow to you river. Well that dream? Can descend to the earth, for all of the above you need to know, regardless of whether you are trading currencies or stocks.
Before you start trading stocks, you need to remember to initial investment, much higher than when trading currency. Shares of large companies are expensive and, therefore, the trader is able to get more than than the currency trading profits.
If you once played in casinos and believe that trading in the Forex - something like that, forget it. With such thoughts, trading stocks, and a couple of days has passed, you will merge your deposit safely. Forex market - is the work to which the implementation should be approached responsibly. Share trading on Forex trader should be regarded as a business, and every business, sooner or later, lead to one of the businessman results - profit or loss. Your task as "forex businessman", is to maximize profits and minimize losses. To do this, just like any business owner, you need to approach the management of their "business" with the same impartiality and sober look.
Unlike currency trading, decide to sell shares to the trader is not so easy. Some traders emotionally "attached" to their shares, which fell to their hard work. They spent a lot of time trying to buy a "good" action, studied the economic situation, carefully examined the financial position of the companies, and then they have to sell the shares, the price of which inevitably reduced. Yes What is the reason? As a result - the share price finally falls, and you suffer losses. In stock trading, this situation is called "the trader's dilemma."
How can a novice forex market to solve the "dilemma trader"? Treat it as a simple financial problem that you should decide. Examples are clothes shops, in which the seller has no right to "fall in love" in their goods, because it is seasonal and leaving it for the next year, the store owner takes the risk and do not sell it, or be forced to sell the product at a deep discount.
In addition, the store owners are forced to sell the product, as they need shelves for new shipments. Trader also in charge of the Forex buy / sell shares, you need to sell the shares for which the price is reduced, in order to purchase a new, higher-yielding stocks.
In order to successfully trade in the Forex market shares, the following guidelines:
1. Stock trading for dummies . Use not only technical, but also fundamental analysis. Currency traders tend to make decisions based exclusively on the results of the technical analysis. Performing operations with shares prinebrezhenie fundamental analysis can be costly to the trader, because it is fundamental analysis allows you to choose a stock based on the situation as the market and the economy as a whole.
2. Stock trading for dummies. Do not skimp on tools. For transactions of purchase / sale of shares, you must have access to a Broadband Internet connection, and have a set of software needed to participate in the auction. Without effective tools your chances of success are close to zero.
3. Stock trading for dummies. Use moving averages when making trading decisions. Moving averages help smooth the data to the trader was proshe identify trends and make the right decisions.
4. Stock trading for dummies. Do not use too large number of tools. At your disposal should be 2-3 tool, which should be understood not only you but also suits your style of trading.
5. Stock trading for dummies. Track costs. Deciding to start trading stocks, you will need to keep a record of transaction, commission costs as well as taxes.
6. Stock trading for dummies. Watch carefully for trading signals. In the decision to purchase shares not refer to their own desires. First, examine the chart, wait APPLICABLE signal to buy, and only then get into position.
7. Stock trading for dummies. Buy strong stocks and sell them - weak. Commandment, needs no comment.
Before you begin to trade shares on the market forex, carefully analyze the necessary costs and evaluate the prospects that will help you avoid serious time and material losses.