Do you want to diversify your investments? Are you drawn to the world of the stock market? It might be time to get started! Stock market investment has indeed been widely democratized and is no longer the sole prerogative of professionals or large companies. Individuals can now join the 29 million online traders estimated by the CloseCross platform. But beware: as Alex Trading reminds us, if the tools have multiplied in the stock market in order to promote its accessibility, this type of investment still requires certain fundamental and essential knowledge. Discover in our file how to start on the stock market and manage your portfolios yourself, which will save you from going through a professional.
The characteristics and operation of the Stock Exchange
To simplify, the Stock Exchange represents a meeting place between sellers and buyers. Listed companies go out to meet potential investors in order to develop their business. These exchanges give rise to transactions during which the buyer will acquire shares, in other words, a share of the company’s capital.
In fact, if the quotations were for a long time carried out “at the auction”, they are now dematerialized. Transactions are thus carried out remotely, using IT tools, and the values of the shares change continuously during the sessions.
You should know that there are several global stock exchanges. They have created stock market indices such as the CAC40 in Paris, the Nasdaq and the Dow Jones in New York, the Footsie in London or the Nikkei in Tokyo.
The first step recommended by Alex Trading to start on the stock market: get trained!
CAC40, Dow Jones, Japanese candle, Forex, scalping, pips… The world of the stock market is not just speculation, far from it! Before embarking on stock market investment, you must first take the time to train yourself in order to acquire the necessary fundamental bases and master the tools of trading.
Some business schools or universities offer training that meets the challenges of the stock market (with specialties in finance, banking or statistics). However, these courses, often offered over several years, are not necessarily adapted to your availability, especially if you are an employee.
To overcome these constraints, you can then turn to online training that allows you to train freely. The offer has in fact greatly developed over the last few years and makes it possible to meet many objectives, whatever your level. The Internet has also become a tremendous source of information. You have access to many media to acquire the knowledge necessary for your trading activity: training programs, videos, livestreams, coaching sessions…
However, it is necessary to exercise the greatest vigilance. Indeed, according to the opinion of Alex Trading, the Web also has unscrupulous people who carry out various scams (copy-trading forex, MLM, etc.). This is why you must above all ensure the quality and seriousness of the training platform on which you are going to register.
Determine your investor profile and strategy
Once the keys to the stock market have been acquired, it is necessary to take stock of your objectives and your investor profile.
To do this, you must ask yourself several questions, namely:
- What is your level of market knowledge?
- What is your financial capacity?
- What is your stock market savings?
- What is your investment capital?
- What is your risk appetite?
These elements will allow you to set up a trading strategy and choose the platform to use.
Know that you must be patient to get started in the stock market. As a beginner, you still have a lot to learn! But, according to the opinion of Alex Trading, it is by practicing on a regular basis that you will become an experienced trader. That’s why you need to start with just a few markets to understand how they work and master them. Go for small positions and place stop loss orders to automatically close the positions. You can then expand your trading activity!
The basic rules for building and managing a portfolio
To put together your stock market portfolio, you must first take the time to observe the values and indices of a few securities in order to understand their behavior.
Once this observation has been made, you will be able to invest. Never lose sight of the basic rule, namely diversification in order to distribute your capital in a balanced and prudent manner. This approach allows you to limit the risks. You can also step into the markets gradually, using day-to-day jolts. It is therefore necessary to follow your investments daily but also the economic news so as not to suffer the vagaries of the market.
Professionals also recommend setting gain targets (upward) as well as a maximum loss floor (downward), the “safety floor”. These criteria are to be determined according to your investor profile and your investment horizon.
By investing gradually, you will be able to evolve without stress and build, step by step, the strategy that meets your objectives.
Be curious: a new habit to adopt according to the opinion of Alex Trading
The stock market is in perpetual motion. It is imperative that you keep yourself informed of economic news in order to make your investment choices. Curiosity, sense of observation and open-mindedness are the qualities of a good trader!
Professionals recommend multiplying the sources for this. You can get your information from:
- websites of listed companies, to access minutes of meetings, general meetings or even annual reports;
- social networks, in particular to exchange with other traders or attend live shows;
- websites of financial market authorities (AMF) or stock market information;
- specialized economic and financial press, such as the Journal des finances, la Vie financière, Challenges and La Tribune.
By training yourself and demonstrating organization, patience and tenacity, you will be able to get started in the stock market. You will then have, according to the opinion of Alex Trading, all the necessary skills to determine your investment strategy and then build and manage your portfolio yourself.
Want to know more: https://alextrading.fr/
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