Nowadays, everyone can become a trader in a few days or a few hours. Indeed, forex allow new investors to learn the world of the stock market without knowing all the seams.By showing a little rigor and enjoying a little time each day, the forex trader can build a heritage, certainly not gigantic, but already enough. Follow 10-Capital to know more about it.
Blue How to do it?
There are not dozens of ways to become a trader. In fact, to trade, you will always have to follow the same approach:
- Finally, invest and reap the benefits of your investments.
- All these steps are described at length on this site. Tools, information, videos are not lacking. A short reading will allow you to become a trader during the day and reap your winnings in the evening.
- As a new investor, be prepared to make a small loss now and then.
- Always set your stop loss to a maximum of 8% below the selling price.
- Perseverance is the key to success, don’t get discouraged.
- Learning to invest does not happen in a day. It takes time and effort to become a successful trader.
- Choose the right broker for your investments
- As a beginner, go for a cash account, not a margin account.
- It only costs $ 500 to $ 1000 to get started. Practice is the best learning path.
- Focus on a few high-quality stocks, it is not necessary to own 20 or more different stocks.
- Don’t get emotionally connected to your shares.
Don’t buy under $ 15 per share. The best companies that are leaders in their sectors do not sell shares of $ 5 or $ 10.Learning the falls and rises in prices can make you predict future prices.Always evaluate your closed positions to see if you can learn something from this.A combination of fundamental and technical analysis is essential if you want to choose the right shares.
Fundamental analysis looks at a company’s earnings, growth in earnings, number of sales, profit margin, and return on equity.Technical analysis looks at the price of a share and the traded volume on the chart.To earn the big bucks you need to buy and sell the best companies at the right time.
A high number of sales and earnings are the most important characteristics of a good company to buy in shares.Buying a stock when it just comes out of a price consolidation zone is crucial to make huge profits.Always choose stocks in the most important industry groups or sectors. The largest number of market leaders were in this industry groups and sectors.
Many profitable stocks come from sectors such as medication, computers, communication technology, software, specialized retail and entertainment and entertainment.
Volume is the number of shares traded per share
Shares never go up in value by accident. Large-scale purchases are often made, often by institutional investors and pension funds.
- The best stocks in the past 45 years formed a basis before reaching new heights.
- The most common pattern is a ” cup with handle ” because it looks like a cup of coffee from the side.
- The optimum point of purchase for each share is the ” pivot point ”.
- On the day that a share ” breaks out ”, volume rises more than 50% above average.
- A decrease in price or volume does not indicate significant sales.
- Replace the old adage: “buy low and sell high” to “buy high and sell a lot higher.”
Chart price and volume promotion helps you recognize a stock that has reached its peak and when it is time to sell it.History always repeats itself at the fair.Most shares of market leaders who ” break out of their base ” will rise 20% in 8 weeks after the pivot point. Never sell a share after 4 weeks, you may have gold in your hands.
Ignore personal opinions about the stock market
A typical bear market will fall 20% to 25% from its peak. A negative political or economic environment can contribute to a further decline.