Apart from investing in stocks, there is another way to profit from stocks, namely trading. However, you must know how to trade stocks properly in order to continue to earn.
Stock is currently one of the capital market products that is quite often milling about. Many people invest and trade stocks because the results are very profitable. However, you need to know how to trade stocks and how to invest in stocks so that you can get multiple profits.
Stock trading is chosen by many people because with a short period of time you can get profits. People who trade stocks are usually referred to as traders .
Before becoming a trader , you need to know how to trade stocks correctly.
How to trade stocks
Here’s how to trade stocks for novice traders :
1. Studying stocks
Learning the types, risks, and benefits of stocks is the first and foremost thing before getting into how to trade stocks. You should need to know beforehand about stock abbreviations as well.
However, don’t worry, there are many articles on Evlooy that discuss stocks or you can watch various stock content on social media such as Youtube.
2. Choose a securities company
Before trading stocks, you must choose a securities company or what is often referred to as a stock broker for the intermediary of buying and selling shares. You should choose a securities company that provides stock trading and also has a low price percentage.
3. Open a securities account
After choosing a security company, you can open a securities account by filling out an online form at the securities company or coming directly to the branch.
4. Choose the stock trading period
The next way to trade stocks is that you choose a stock trading period . To get the maximum profit you can choose short-term stock trading , but the risk of loss is also quite large.
5. Determine the right stock index
You need to choose a type of stock index that can be used for trading and also one that has the best quality with high quality and is also owned by a professional company.
6. Learn the online trading application
The next way to trade stocks is that you have to learn the features in the stock trading application that you will use. You have to understand what analysis, stock screener, top stock , or various other terms are.
7. Start with small capital
Indeed , stock trading will be more profitable if you invest with large capital. However, for those of you who are beginners and are just trying to trade stocks, it is better to start with a small capital, so that when a loss occurs, your capital does not run out big. It also minimizes errors in how to trade stocks.
8. Buy stocks when prices are low
You can try to buy the stock at a low price or when it hits a support point . However, a low stock does not mean a bad stock, it could be that today you bought it at a low price, tomorrow the stock price has gone up.
9. Do stock analysis
The next step is that you have to do stock analysis, understand indicators or everything about stock trading . So, when you can analyze stocks correctly, you can also have the right strategy when buying or selling stocks.
10. Regularly see stock developments
The last way to trade stocks is that you must routinely and actively watch the development of stocks on the stock exchange, because this is what distinguishes trading and stock investment. By regularly looking at stock developments, you can find stocks that are sold at low prices.
Well, those are 10 ways to trade stocks that you must know as a beginner trader . Keep in mind that stock trading does have big advantages, but there are also big risks that you have to face.