Globalization along with new technologies has made a dent in society. We all know what happens anywhere in the world, we know which country is growing and which is not, we can even see it from our smartphone or tablet with applications.
What is trading by investing in the Stock Market
First of all, we must put together the terms invest in the stock market and trade, they go hand in hand and one plays thanks to the other. Investing in the stock market, although in a very basic way, we all know what it is, to buy securities in potential markets that can give benefits in the short or long term. Trading is simply a technique that is often used to quickly profit on the stock market without being too pretentious or the opposite.
Trading is about carrying out buying and selling operations in very short periods of time, usually on the same day. This practice is usually done by buyers with enough experience who are looking for big profits in a short time - like everyone else -.
The main drawback of trading is the risk of operations, you have to be very aware of all the movements and negotiations that the selected market suffers and investing in this way entails two possibilities; big gains or big losses, in a very short time.
We must take into account all the factors that are linked to any operation we want to carry out, such as limiting our possible losses in case of failure and monitor the commissions of these operations to avoid scares us with an erroneous profitability that we have calculated.
In summary, these types of practices are not only carried out by financial experts, but you do have to soak up every day of all the movements and situations of each company in which you want to invest and those that are in their sector.
The Stock Market and stocks
A few years ago talking about the stock market and the purchase of shares was something rare and for experts, you had to be day and night discovering what was happening in the world, to know whether or not it was worth buying shares of a company or investing in a market other. This has changed and as we said we have a lot of help.
Now we can see in a multitude of websites and applications such as IG for iOS or Android, where in real time we see the value of the different markets and hundreds of helps to ensure, within the theory, that there is a possible benefit in the short or long term.
A few years ago, stockbrokers - stock brokers - more than economists were authentic marketinians who could sell you shares in a company two steps from bankruptcy, as if it were going to be a large multinational in a year. And what happened? It hit the roof and began to scare the idea of investing.
Today this has changed and we ourselves can see the reality of what they tell us. Going to a more than usual example in this blog, we can be aware of the products that Apple presents and not only that, we also know with enough certainty which will be the next devices that will see the light without having been presented yet. This helps us get an idea of where the shots are going and decide whether to invest in a company or not, also on the web, as we said, with platforms like IG we see what happens in real time; if stocks rise we will be aware, if they plummet, too.
Basic tips
There is no better advice than to know and not mess wildly, You have to look at news of the sector daily, be aware not only of the changes that a company presents, but of all the companies and focusing something more on the sector in which you want to invest. If for example Vodafone has dropped a lot suddenly, you should look at how the shares of other similar companies such as Orange have reacted and from there investigate why this change is due and if it could be profitable to invest in said company expecting an early rise.
Keeping up to date on all this is not difficult at all, we return to the same thing, technology helps us and taking advantage of the fact that we are glued to the mobile or the computer all day we can inform ourselves. In addition, applications are making the leap to the smartwatch such as IG that has launched an application adapted to the new Apple Watch, there is no excuse for not finding out everything, you have all the information on your wrist.
With these little tips You cannot start to fend for yourself alone in the world of trading and the stock market but they are some basic notions to begin to know how things are going. Now you decide if you want to get into this world and start soaking up information, downloading the required applications and take hours, a few. Of course, if you dare, keep in mind that it is a constant task that can turn out very well, but you have to be psychologically prepared. If you dare and you like it, go ahead!