Stocks

What is stock trading?

Shares are securities that a company issues in the hope of raising additional capital from investors. They, in turn, purchase the stock at market price, with the prospect of further growth. The better a company is doing, the more expensive its shares are. The higher their price is, the more favorable deal the investor has made. However, if the value of the securities begins to decline after the purchase, the investor suffers losses, because he bought them more expensive.

Initially, trading in shares was impossible without actually purchasing ownership of the asset, i.e. the securities themselves. Over time, CFDs were introduced to make this market accessible to a wider audience.

Stock trading involves immersing the trader in the news on the companies that are chosen to make trades. This can be Apple, Coca Cola, Facebook, JPMorgan, IBM, Netflix and others. It is important to follow what is happening in the world: it allows you to understand the main global trends. Also track indicator data for the country in which the selected firm operates (head office and production facilities). It will help you learn how to anticipate trends such as rising unemployment rates, decreasing productivity, etc.