Short-term trading monitoring
When speculating in stocks, you need to analyze information from professional magazines, get acquainted with analytical reviews, read reports on industrial capacities, the introduction of innovations and the price of securities for at least the last few months. It is advisable to study the activities of not one corporation, but several from one industry at once, so that you can choose the best of the best stocks. It is better to be a professional in one industry than to have a vague idea of a number of industries, which is unlikely to help assess the position of the company. It is necessary to monitor events that may affect the value of the security. Suppose, if after the introduction of an innovative project in a corporation, the value of its securities increased by 1/10, then we should expect an increase in shares in the price in the future. If a list is compiled with all economic indicators,
With short-term trading, traders try to earn more than lose. It is possible that this approach may be effective for you.
In speculation, when positions are kept open from several days to weeks, a thorough analysis should be carried out. This includes a graphical and news analysis of stock prices over the past year, taking into account the opinions of serious experts and such economic indicators as quarterly income, dividends,% of shares with the management of the corporation, liquidity, company debts, the ratio of the market price of the stock relative to the base.
In this case, in addition to surface monitoring, which is needed for short and medium-term trading, it is advisable to conduct a thorough fundamental analysis. Positional speculators are interested in a balance sheet, which indicates the price of structures, monitoring income reports and much more. It is necessary to assess profitability.
How to trade stocks on the stock exchange for beginners
Many traders love to go “dear to dissidents,” but this behavior is rarely effective in the stock market. A stock market is more easily predicted than a currency or commodity market. If the stock price is constantly growing in price, then you can wait for the moment of correction (rollback of the price down), and then buy it before the moment the price goes up to new heights. Let me give you an example, Facebook shares are constantly growing, with any growth there is a correction, this is our opportunity to make a profit.
On the chart above, I noted the points of corrections before the subsequent growth in an ever-growing market. That is, if we open a deal to buy shares at the moment of formation of the lower part of the “checkmark” and close it at the peak of growth, then we will profit. A similar situation can be found on the Apple stock chart.
What stocks are best to trade? From 20 to 50 dollars
It is in this price range that stocks of growth are most often found. If the market is “overheated”, as it is now at the beginning of 2018, it is more difficult to find shares that would go up actively than, for example, in 2009. Often, stocks of the innovation sector are growing rapidly in price. Shares of Internet companies can also quickly grow.
Do not forget that even an expensive stock can go up in price – higher and higher. Very expensive stocks can instantly fall in price due to the fragmentation of the business. So, it is better to bypass securities that cost a lot of money.
There is a special tool for selecting stocks for trading – the Stock Screener, which is an automated tool that allows you to correctly select stocks of companies according to your own filters. Competent selection of stocks for trading is a fundamental factor in the success of trading in the stock market. You can set the necessary parameters, for example, determine growing stocks over the course of several years, set the return on investment, and so on. I use the free Finviz service. For example, to determine growth stocks, we set the parameter EPS growth past 5 years (growth of stock profit over the past 5 years) and EPS growth next 5 years (growth of stock profit over the next 5 years), in the output we will see all growth stocks, of which there are a considerable number. Also in the filter, I set the shares of the largest corporations by capitalization, traded on the US stock exchange NASDAQ.