What is the stock market? How do I trade and invest in stocks? how to Trading Stock? #2 【investment tutorial courses】

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Stocks are the most efficient use capital in the capitalist world, investors and buyers can exchange the operating rights of the company in almost anonymous circumstances, the first origin of the stock is made in 1609 by the merchants in Amsterdam, the Netherlands so set up a system of commercial innovation, at that time the ordinary people and even noble property can not bear the funds required by a company alone, so in this case the share (share) system was created, by many people to contribute and issue shares by percentage Such a straightforward business approach was quickly welcomed by Dutch businessmen at the time , because the Netherlands itself was a small European border country and did not have the huge royal financial resources to support the cost of ocean trade , and the Amsterdam Stock Exchange was the world’s first stock exchange at the time .

Stock Trading Introduction

The stock market, also known as the secondary market, is mainly through the major exchanges of the country approved by the capital companies under the legal supervision of each country to form a trading market, where investors and shareholders sell their holdings of the company, so that ordinary people / institutions do not need direct involvement in the company’s management can also obtain the company’s asset growth, which is the capitalist country’s most efficient way to manage the whole country through the free flow of capital to promote rapid social evolution and the elimination of outdated industries.

The stock market is through electronic trading, often between the transactions in microseconds, and this mechanism greatly enhances the liquidity of the stock market, that is, trading is often completed in the blink of an eye, but there are also parts of the stock market through the two sides of the coordinated trading such as OTC stock market, this type of market exchange there are manual transactions rather than electronic trading, usually those small companies or emerging entrepreneurs also partly because of the company’s stock evaluation led to the market, Then trade on the OTC market, where stocks usually have a relatively high investment risk

What kind of type people suit for trading stock

  • Full-time regular workers
  • slash youth
  • professional mathematical user
  • Home buyers
  • A person who has sufficient enthusiasm for learning
  • Good at emotional managers

World’s major stock markets (maximum trading opportunities)

United StatesNasdaq Exchange, New York Stock Exchange, American Stock Exchange
JapanTokyo Stock Exchange
EuropeFrankfurt Exchange, Euronext Paris, London Exchange, Zurich Exchange, Madrid Exchange, Moscow Exchange
ChinaShanghai Stock Exchange, Shenzhen Stock Exchange, Hong Kong Stock Exchange
TaiwanTaiwan Stock Exchange
New glassSingapore Exchange
South KoreaSouth Korean Stock Exchange

The advantages and disadvantages of stock trading

pros

  • Long-term returns are better than start-ups and real estate
  • Shareholder benefits
  • Dividends are paid to the distribution company on a quarterly date each year
  • Change cash emergencies at any time

cons

  • Volatility is greater
  • Share prices are affected by central bank policies
  • The information revealed the fall
  • It’s easy to influence emotions

How to invest in the stock market

▶ prepare information for opening an account

  • personal ID/passport
  • Proof of address/ utility bank statement, etc
  • Bank account/savings card or credit card

how ▶ open an account

  1. Select the trading platform
    ▶Forex & Stock Broker Platforms Reviews Recommened◀
  2. Upload the file material
  3. Deposit via the bank Visa/Master card
  4. Waiting for approval
  5. Once you’ve completed your review, you can start trading stocks

A common problem for newbies in stock trading

I don’t know how to provide proof of address
how to deposit and withdrawal money
Why the money in the account has been decreasing
why there price are going down for bit,i was taken huge loss ?

The psychological construction of stock investment

Because stock investment will have immediate price fluctuations, new investors usually inadvertently always look at the relevant investment news and price quotations, unlike real estate, the object of sale is usually one-on-one and face-to-face, in the stock market can not see your counterparties to participate in the bidding, so the face of asset figures often let you feel high and low ups and downs or even affect work, family and other aspects, so you should find some trusted people to communicate your trading situation.

Many times investment is only not a test of how much a person understands about investment, because when you really live-real investment, you face things are not market fluctuations, often their own mood swings, many people often fail to lose out, such as after a few easy profits on their investment methods too optimistic and take highly leveraged financing transactions, and finally in the case of financing guillotine loss, or can not stand the stock price rise to chase high lead to subsequent decline leading to losses and so on.

Market volatility not only leads to mood swings but also physical discomfort, while over-focusing on trading can also affect interpersonal relationships, or holiday markets do not open when they often expect the opening of the week, these are investment will cause a symptom of mental illness, if you have similar trouble suggested that it is best to leave the transaction first, and think about a way to invest that will not affect the mood, may miss certain opportunities but a healthy body is also a wealth.

How do I analyze stocks? When do you decide when to buy it?

investment stock analysis

Investing in stocks involves the following methods, each with its advantages and disadvantages and of then in different countries, the environment, industrial conditions, politics will produce different results, each method suitable for different groups of people, the following is roughly divided into:

Micro Economic Analysis Method

Through various economic indicators to determine the trend of the current economic situation, such as central banks monetary ﹑ fiscal policy, through the overall economic analysis can roughly determine the long-term trend of the stock market, this method is usually the government pension funds, insurance funds ﹑ ﹑ low-risk institutions to send They do not pursue a high rate of return but a stable indexed investment.

Industry Analysis Method

Analyze the future of an industry through their professional capabilities. Generally, such people have a deep understanding of professional work in individual fields and can master the industry’s economic cycle. This requires strong industry research and analysis capabilities, as well as a deep understanding of specific industries. With a deep understanding and rich experience, he can judge the advantages of competitors in the same industry to invest in companies that are better than other peers, and then get higher-than-market rewards.

Stock Fundamental Analysis Method

Fundamental analysis is usually based on the financial report and accounting data released by the company, and through these data to compare various data among competitors in the same industry, such as the main source of funds, financial leverage, net interest rate, gross interest rate, debt ratio, commodity turnover rate, solvency ratio, Cash flow, etc., select the outstanding companies among them and hold them for long-term investment.

Technical Analysis Of The Stock Market

The technical analysis of the stock market is to find the stocks that are most likely to rise or fall by observing price trends, and to earn the spread through price fluctuations. The price difference is usually drawn from technical analysis lines such as price moving average, MACD, KDJ, RSI, etc., based on the past prices Changes in stock and trading volumes are used to predict future stock changes. This method can make a lot of profits in a short period of time. However, a large amount of time must be invested regularly to study price trends and current industry trends, and there must be strict The trading principle executes stop loss and stop profit to effectively control your emotions.

Stock Market News Analysis

Trading as intelligence war on the battlefield, how to select the correct information in front of a lot of useful information, and to pre-empt the market’s reaction to bet trading
But be sure to note that any form of “insider trading” and “non-public message leaked” are illegal, especially in heavily regulated person within the company may be subject to criminal law, a lot of time various fund managers usually Establish a good relationship with the company, and release bull news to boost stocks when necessary.

More Trading Broker Platform You Might Interesting

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Exante (XNExante (XNT LTD)is an international Stock、Bond、Forex、ETF、future & option  trading platform , since 2006 they started operate stock market offer client from worldwide without open local broker account and free to trading stock from  over 50+ market in one broker platform , over 10000 different stocks and 100 country's bond and provide 13 currencies  all in the Exinite , provide high quality service and trading platform, office locate  London Amsterdam Moscow Saint Petersburg Kyiv Almaty Riga Malta Cyprus Hong Kong .

More details +
most successful  broker platform provide over 150,000+ financial products with your single multi-currency account on any device,  without any additional fee add most cheap way invest worldwide , although it's only support bank transfer taking by 1~4 days , by list broker always your best choice . 
Trading Conditions
9.5
Trading Fee
7
Trust Rating
10
Deposits and Withdrawal
1
Customer Service
10
APP
7
User friendly
7
PROS:
  • low trading fee
  • 50 market in one platfrom
  • over150,000+ financial products
  • 24/7 Customer Service
CONS:
  • only support bank transfer
  • not support Friendly UI or lite platfrom
  • high withdrawal fee
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EXNESS is the only forex broker in the world that supports fully automated withdrawals, withdrawals do not require manual review, and fund deposit withdrawals are quick and convenient Exness Group (Exness) was established in 2008 Exness Group provides trading capabilities of more than 120 financial instruments, provides the best market order execution services and has a small spread in major currency pairs.

More details +
for people who are focus on Forex trading Exness is best choice  ,  also support multiple deposit and withdraw  by automatic without manually check  and fast cash in only 3 days  and Free VPS server for increase trading environment in other platform that usually spend more 20 $ per month ,  without VPN it's might causing some delay ordering losing money ,  EXNESS is a good choice for traders looking for MT4 and MT5 economists regulated by the European Union, but its CFD scope is less than its peers. Its own research content is also insufficient. These are all areas where it can be improved.
Trading Conditions
10
Trading Fee
10
Trust Rating
7
Deposits and Withdrawal
10
Customer Service
7
APP
7
User friendly
7.5
PROS:
  • Provide multiple account types
  • VPS hosting
  • online web trading
  • Copytrading
  • high leverage over 2000
  • lowest deposit from 1 $
  • Great educational tools
CONS:
  • Limited product portfolio
  • less Stock CFD
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eToro is founded at 2007 in Israel by Yoni Assia, Ronen Assia, David Ring, from beginning they aiming Stock and forex trading platform for every person in the world, with friendly innovation web-trading platform make every person can easily get started without deep financial acknowledge, now eToro serves more than 13 million users from around 150 worldwide countries.

More details +
the flexibility of the trading on eToro platform and the possibility of broad communication with other trading participants. Working on this platform is truly easy and convenient that offers both investing options or regular trading, along with comprehensive automated trading capabilities.
Trading Conditions
10
Trust Rating
10
Trading Fee
7
Deposits and Withdrawal
8.5
Customer Service
6
APP
10
User friendly
10
PROS:
  • Great Social trading environment
  • Free Stock and ETF trading options
  • demo Account available for practice
  • Quick response and relevant answers
  • Availability of Live Chat
  • Customer-friendly layout
  • Supporting Android and iOS
CONS:
  • Standard login without Face ID option
  • No MetaTrader4 offered
  • Limited range of tools and analysis
  • Only Web Version of the platform
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BDSwiss DB Switzerland is a trading platform established in 2013. It is headquartered in Zurich, Switzerland. It currently has more than 1.5 million members distributed in more than 180 countries around the world. The main source of customers is Europe and currently has offices in the following overseas locations. Investors can The following locations obtain services nearby, including Berlin-Germany, Kuala Lumpur-Malaysia, Tirana-Albania, Pristina-Kosovo and other countries. But the scale is not large, there are only a few about 100 stocks. The main trading product is low-spread foreign exchange trading. Founded in Switzerland, it is a law and system trusted by many countries around the world. Choosing BDSwiss is nothing more than caring about capital. Safely and honestly provide transaction quotations and therefore are trusted by customers from all over the world

More details +
Compared with most trading platforms only provide MT4 or MT5, or some traders only provide their own trading platforms, they also provide two solutions for investors to trade. In addition to a large number of support tools, it also includes online instant customer service. It is very rare that brokers must put in a lot of effort in order to provide excellent services in addition to charging low transaction fees.However, BDSwiss has done it and will not charge additional fees.In addition, the cost of setting up a company in Switzerland is so high. Many trading platforms set their headquarters in a third country. The difference is that this broker chose to stay in Switzerland in order to win the trust of customers and the safety of customers’ funds. If you have a higher demand for security, we think it is worth choosing.
Trading Conditions
10
Trading Fee
10
Trust Rating
8.5
Deposits and Withdrawal
8.5
Customer Service
8
APP
10
User friendly
10
PROS:
  • Excellent trading app
  • Friendly novice guide
  • Smooth official website
  • Multinational supervision
  • Live chat
CONS:
  • A few stocks
  • Limited product portfolio
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Pepperstone founded in 2010 offer forex and CFD stock trading service base on Asia-pacific, office and headquarter located in Australia, offer low ping and high quality price quote without slippage. In average Pepperstone is not one of broker which offer fantastic trading app but reliable and fairly trading broker platform, why said like it ? Because most broker usually going price slippage but in pepperstone such report are no usually happened, so for day-trdaer and mass Quantitative Trader are really important even your small trader that's one of crucial priosity.

More details +
In average Pepperstone is not one of broker which offer fantastic trading app but reliable and fairly trading broker platform, why said like it ? Because most broker usually going price slippage but in pepperstone such report are now usually happened, so for day-trdaer and mass Quantitative Trader are really important even your small trader that's one of crucial priosity.
Trading Conditions
10
Trading Fee
10
Trust Rating
10
Deposits and Withdrawal
7
Customer Service
8
APP
9
User friendly
5
PROS:
  • Low slippage
  • Low ping support VPS
  • High speed respown time
CONS:
  • less CFD stock

More content you might be interested

investment tutorial

References

Wiki stock
MBA think tank(Chinese)

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