Trading tools
The innovative specific tools and functions available through the online brokers will assist you in improving your trading experience. Learn more!
If you are just starting to become interested in the stock markets then we highly recommend you take the time to learn about speculating on the stock markets before investing your capital online. To do so you can read through the information available on our website where you will find numerous informative and useful articles with explanations relating to the stock markets and their operation as well as the major stock market indices and their companies, bonds, the currency market and that of commodities such as crude oil as well as explanations relating to different strategies and analytical methods.
As with any other activity, online trading requires comprehensive training and should not be entered into lightly, simply speculating through chance.
We would draw your attention to the absolute necessity of understanding how to buy shares and other assets that you plan to invest in before taking any positions. To assist you we offer you the opportunity to read various information on our website relating to the great companies listed on the stock markets around the world. For each company and share we will provide you with detailed information and explanations relating to the company concerned including its activities and competitors as well as partners and some advice to assist you in completing high quality comprehensive fundamental and technical analyses.
The innovative specific tools and functions available through the online brokers will assist you in improving your trading experience. Learn more!
To effectively trade in the best shares and indices on the stock markets read our useful and comprehensive information.
Learn how you can invest in the stock markets from the comfort of your home using online trading platforms.
As we have just briefly stated, investing in the stock markets is far easier nowadays than before, anyone who wants to can now access the major stock markets worldwide. But this type of investment has both advantages and disadvantages that we will explain in a more detailed manner so you can understand the possibilities and risks that investing online entails.
But of course, before choosing to invest in the stock markets you should also know and understand the disadvantages of this type of trading.
To conclude, although trading on the stock markets offers numerous advantages it is above all best practised by experienced investors that know the markets and are able to spare enough time to complete pertinent analyses.
Investing in the stock markets is not an easy thing to do for all investors as it requires a certain knowledge of the markets and an understanding of the most effective analytical methods. This is why exterior advice and information can be so helpful for a beginner trader. In this article we will offer some advice for investing in the stock markets and explain the major analytical methods at your disposal.
To speculate most effectively in the stock market, you should above all be able to complete comprehensive analyses of the share price you plan to invest in. Generally speaking, the two types of analyses available to you are the technical analysis and the fundamental analysis. Here as follows are some explanations on this subject.
Firstly, a technical analysis is an analysis of the asset price which is based upon a study of the stock market charts. By studying the historical movements of an asset price it is possible to predict the future movements depending on the markets. Of course, these methods require a certain knowledge of the principal trend indicators and the volatility as well as an understanding of the tools available to use with these charts. Luckily, the majority of the reputable online brokers offer these stock market charts that can be personalised with visual indicators or time periods and display various information, in real time, that will enable you to complete your analyses. You then simply have to be able to interpret these signals and indicators.
A fundamental analysis however is based on exterior events as well as news and publications that will have an impact on the price of an asset. This could notably include major events relating to the company that issues these particular shares or news relating to its major competitors or the principal activity sector. These could also relate to financial results or mergers, acquisitions, sales, or partnerships concerning the company.
The best way to predict movements in a share price is therefore to use both a fundamental analysis and a technical analysis. In this way you will obtain more reliable signals that you can use to take strategic positions on your chosen asset.
We shall now continue with some information to assist you in achieving investments on the stock market using these two types of analyses, and some tips we recommend you follow systematically.
By applying these simple rules you will be in a far better position to enjoy success in your experience of stock market trading online.
Stock market investing and active trading are two distinct approaches to participating in the financial markets, but they differ widely in terms of strategy, objectives and risk management. Here is an overview of the major differences between these two methods.
1. Long-term vs. short-term objectives :
Stock market investing is generally geared towards long-term objectives. Investors buy stocks, bonds or other financial instruments with the intention of holding them for several years or even decades. Their aim is to benefit from capital appreciation and dividends over time. Active trading, on the other hand, focuses on short-term objectives. Active traders seek to make quick profits by buying and selling securities over very short periods, sometimes even in the same day (day trading). They try to profit from the daily volatility of prices.
2. Fundamental analysis vs. technical analysis :
Stock market investors often base their decisions on fundamental analysis. This involves studying a company's financial statements, growth strategy, profitability and long-term market prospects. Fundamental analysis is used to determine the intrinsic value of a stock and to make informed decisions over long time horizons. Active traders, on the other hand, mainly use technical analysis, which focuses on studying price charts and technical indicators to predict future short-term market movements. They seek to identify trends that can be exploited immediately.
3. Frequency of trading :
Stock market investors trade much less frequently than active traders. They often buy stocks with the intention of holding them for the long term, re-evaluating their portfolio periodically. Active traders, on the other hand, carry out a large number of transactions every day, buying and selling securities according to short-term market movements.
4. Risk and capital management :
Active trading generally involves higher risk due to the speculative nature of the trades and the volatility of short-term markets. Traders must be prepared to accept large and rapid losses. Stock market investors, on the other hand, take a more moderate risk by adopting a long-term strategy, often less influenced by the day-to-day fluctuations of the markets.
5. Time and commitment :
Investing in the stock market often requires less time and involvement on a day-to-day basis. Investors choose their assets and hold them for a long time. Active trading, on the other hand, requires constant monitoring of the markets, regular analysis and real-time management of open positions.
In conclusion, although stock market investing and active trading share the objective of generating profits from the financial markets, they differ profoundly in their strategies, their time horizons and their approach to risk. Long-term investors favour stability and gradual growth, while active traders seek rapid gains in a more volatile and dynamic environment.