How to trade shares for beginners

Trading of stocks in the stock market is easy. Historically, they tend to rise in value over time. It also has the opportunity to achieve better performance than other types of investment in the long run.

However, equities are subject to greater price volatility than other financial instruments. Trading in stocks is either an investor or a speculator.

The investor buys the shares of a company after reviewing the company’s performance and knowing its services and the strength of its products.
It reviews its quarterly, semi-annual and financial statements at the end of the fiscal year.

It compares the performance of the company in different annual periods or between the performance of the company and a competitor.

This method is called basic analysis.
Whoever follows this method is the one who wants to take profit from his expectation that the stock will rise over several months or years or even earn profits from the company in return for his share of the company.
The strategy of acquiring a stock in this way is to buy and hold, ie to own and remain in the investment portfolio for a period.
The second row of stock traders is the speculator, which analyzes the stock using the stock performance chart.
Mudarib does not pay attention to the company’s products and services or financial statements.
All he cares about is the movement of the arrow illustrated by the chart.
This type of analysis is called technical analysis.
Speculators are divided into sections including swing and speculator daily.
Here’s how to start trading stocks for beginners:

1. Choose the best stock trading account according to your abilities

Your trading account is your connection to all other individuals in the world who want to buy and sell stocks. If you want to buy shares in a particular company like the oil giant BP, you need to find someone who not only owns BP shares but is also willing to sell them to you. Basically, this is what the broker does for you – it connects you to the stock market and other shareholders, hence the term “stock market”.
A stock trading account with an online broker gives you access to their trading platform where they can deliver buy and sell orders to other buyers and sellers by contacting the stock exchange.
Which manages the stock market and lists the shares of companies you wish to trade.
Because your broker will maintain your trading or investment capital, it is important that you choose a broker that offers the highest levels of licensing and security.
For example, investment companies operating under the Admiral Markets brand offer the highest regulation and authorization from the UK Financial Conduct Authority, the Australian Securities and Investment Commission, the Estonian Financial Supervisory Authority, and the Cyprus Securities and Exchange Commission.

Admiral Markets offers additional benefits to users, such as:

  • Provide a negative balance protection policy that will protect you from negative market movements.
  • Allow the use of multiple types of trading and investment accounts such as Admiral.Invest where you can buy shares in listed companies from 15 international stock exchanges.
  • Providing the ability to open a CFD trading account for potential profit from emerging and falling markets, as well as access to leverage of up to 1: 500 for clients classified as professional and up to 1:30 for those classified as retail clients. This allows traders to control larger positions with a smaller deposit.
  • The ability to trade with a broker offers some of the least transparent brokerage fees in the market.
    Access the fastest and most popular stock trading platforms from MetaTrader for PC, Mac, Web, Android and iOS.
If you are inspired to open a stock trading account, you may be happy to know that Admiral Markets also provides you with the latest market updates and technical analysis for free!
Click on the banner below to open an online stock trading account today!

2. Choose the best online stock trading platforms

The stock trading platform is how to place the entry and exit levels of trades on the stocks you choose.
It is important to know how to choose the best online stock trading platforms because it represents your access to important information and tools such as the direct market prices of the company you are trading.
A stock price chart, various trading tools and technical indicators that can help you make trading decisions and more.
With Admiral Markets, users can access stock trading platforms and other markets from MetaTrader.
This platform allows traders to view the company’s stock price charts as well as access the order window to place buy and sell trades and see how they perform.

Admiral Markets offers the following most popular stock trading platforms:

  • MetaTrader 4  
  • MetaTrader
  • MetaTrader Web Trader
  • MetaTrader Supreme Edition (a custom plugin for MetaTrader 4 and MetaTrader 5, created by Admiral Markets and professional stock trading experts
  • MetaTrader 5 for desktops, web and mobile offers multiple advantages when buying and selling stocks.For example, traders can access multiple types of trading accounts such as the Admiral.Invest investment account or the Admiral.MT5 account for trading CFDs as well as accessing multiple asset classes

So far I have learned what trading stocks are with an online broker in the stock market.

And how to choose the best online stock trading account and different stock trading platforms.

But how do you decide which stock to buy and sell and when?

There are a variety of different styles and strategies to choose from.

Knowing which one is right for you can be very helpful in building consistency and experience in online stock trading.

3. Choose the appropriate stock trading strategy

The trading strategy helps traders analyze stocks in a consistent and systematic way to get clues about where the stock market can move. To identify these “clues,” these traders use different analysis methods such as fundamental and technical analysis:

Traders are trying to determine whether the company is likely to make more profits in the future as this may translate into the share price as the company becomes more valuable.

Technical Analysis. This is a price study to identify buying and selling activity patterns that may lead to potential entry and exit levels.

The stock price study is generally used by charting patterns, price movement and technical indicators such as moving averages, MACD and many others.

There are six types of strategies to choose from when trading and each has a different weighting in the amount of fundamental or technical analysis we use.

Four of these strategies are most commonly used in stock trading. These include:

Traders typically use fewer time frames when making their daily trading decisions.

In the MetaTrader platform provided by Admiral Markets, you can view the 1, 5, 15, and many different timeframes.

Most swing traders will use a combination of fundamental and technical analysis to make their own trading decisions, but more weight will be placed on technical analysis and the use of technical indicators such as moving averages.

Trading of stocks
Trading of stocks

Learn more:
Marowa Al Tujjar
Marowa Al Tujjar
مديرة القسم الصحفي - كاتبة و محررة إقتصادية متخصصة بالعملات الرقمية

Latest Analysis

Texas Oil Analysis Today 14-01-2020

Texas Oil Analysis Today 14-01-2020: Oil has been falling since last week. The path was around $ 58 a barrel open as a retest...
Bitcoin 1

Bitcoin analysis 05-01-2020

Special Reports

The Best European Cities for Investment In 2020

Real estate in major European cities has had a wild ride in 2019. Brexit was, in theory, going to be taking place toward the...