A Brief Summary of Stock Trading
Trading stock is one of the more accessible ways for an investor to take advantage of the greater economy’s movements. Most brokerages offer shares of major companies and the premise of online stock trading, or equity trading, is simple to understand. To buy equity is to have an ownership stake of a company or corporation, with the value of your shares tied to factors like the company’s performance and the markets at large.
By offering shares on a public stock exchange, a company trades ownership rights for a significant amount of capital to use in operating the business. This process has been around for hundreds of years, with both new and veteran market participants trading stocks online to invest and grow their returns.
Trading on the Alvexo Platform
Alvexo offers the ability to buy and sell stock from some of the major US and European stock exchanges, like the NYSE, the NASDAQ, the London Stock Exchange and those of Spain, Italy, Germany and more. With hundreds of corporations to choose from and a full trading suite, traders from around the world choose Alvexo as their only portal to the markets.
- Wide variety of stocks and other assets
- Many platforms and ways to trade
- Thorough Trading Academy education
- Live data and accurate indicators
The key to trading stocks successfully is in the data. Our array of eBooks and other educational materials teach traders what to look for in the news, and how to filter the likely opportunities from the unlikely. The Trading Academy is always available to teach which tools to use in analyzing your idea, and how to dim uncertainty in order to produce a confident execution. In addition, our variety of platforms, including the popular MT4, mobile and web traders make Alvexo the simplest solution to success for traders of all levels.
Why trade stocks?
There are strategies to use when trading stocks that match any trader profile, risk-appetite, or earnings timeline, making this market one of the most accommodative. Investors can go long on enormous global companies to grow a nest egg, or they can buy and sell many stocks within a single day for quick returns.
The stock market is somewhat easier to read than investment instrument markets like currency, as stocks are reliant on both market psychology and sentiment, and real performance. They also concern themselves with what makes a company run well – a much smaller affair than the proper mechanics of government or macroeconomics. This is what created the term ‘buy low, sell high’, as the intended trajectory for any company is to grow over time. A large company with a history of upwards trajectory is still affected by a particularly poor quarterly earnings statement, but an initial drop will likely see traders buy the stock when it’s viewed as undervalued.
Stocks are a good thing to have in an investment portfolio and are an important balancing tool to use with bonds, mutual funds, cash, currencies and more. There are also many derivative methods of trading, such as trading CFDs: contracts that track whole stock indices like the S&P 500, also available through Alvexo.
Tips for Trading Stocks
Aside from following the news, one of the keys to trading stocks successfully is in the information provided by the company to the public. While transparency is a part of the law in all exchanges, reading the information for clues of future performance is the hard part. All of the best tools and indicators used to make sense of this data are available on the Alvexo platform, like the RSI and candlestick charts, each an excellent example of how many angles a stock can be examined from.
Do thorough research on companies that you wish to invest in, in order to determine an effective strategy. While greater movements run parallel with those of the economy, investors on a longer-term timeline should look for companies that have fundamentals healthy enough to sustain momentum. Some events that provide spikes in price beneficial to short-term traders are things like initial public offerings (IPOs), quarterly earnings reports, new products reports, acquisitions, share buybacks and relevant news.
Sign up for Alvexo now to begin exploring the tools and analyses that make trading stocks simpler than ever before.
Alvexo follows the market vigilantly, and our analysts provide insights on issues affecting equities that are clear and accurate. Traders that need experience are eased gently into the basics of beginning a properly built, successful stock trading story with tools like the Trading Academy and free trading signals, while experts have access to a Swiss army knife of indicators they need to power advanced strategies.