Willing to invest in stocks in the near future? If yes, then there might as well be a number of questions flooding your mind right now. Is investing in stocks really a good idea? If yes, then how much should you invest? Overwhelming…. Isn’t it? We will walk you through the basic tips to succeed as a stock trader. Do read on for further details.
How do you ensure desirable results in stock trading?
One of the most notable mistakes committed by traders is that they end up treating stocks as gambling. However, let us tell you that though your fortune does have a role to play in trading, it (the role of the fortune) is not as powerful as is the case in gambling. Trading, on the other hand, is a very interesting combination of art, science and of course, fortune. While some traders are blessed with inherent trading skills, there are others who master the nuances of trading only with time. Given below are a few tips to bolster your trading strategies.
Know which the best time to trade is
When it comes to selecting the trading hours- afternoon remains the best time to do so, as per most of the stock gurus out there. To be more specific, 1 p.m. to 2.30 p.m. EST is the most ideal time according to them- simply because the whole country is at work during that time and everyone is in a position to digest the major economic headlines. Most of the government stats affecting the market come out during the morning (usually) and it is only by the afternoon that traders go on to understand the major trend that develops after the news.
It is not prudent to place market orders before the trading day opens
Yes, trading experts will always advice you against placing market orders- i.e. those without any buy or sell orders- before the trading day opens. There are several things that start happening right at the moment the bells are rung- so much so, that you might even end up paying much more than what you had intended to- from the buying side or receiving much less than what you had expected from the selling side.
Find a good broker
Stock brokers play a crucial role in affecting your trading fortunes- quite simply because they identify the most profitable investment opportunities for you. When it comes to new traders with minimal exposure to the market, it’s the brokers who end up guiding them through their initial journey. So, it is important to settle for the services of a broker who has the in depth understanding of the market. There is no dearth of brokerage firms and all of them will undoubtedly claim superiority over the others. However, you should only exercise due discretion to find out firms that are genuinely backed by proper credentials. Finding such a broker might end up taking time but it will be worth it.
How can you bolster your knowledge about stocks? By visiting CMC Markets.