How Can You Start Trading Stocks?

How Can You Start Trading Stocks?
By www.ProfitableTradingTips.com

http://profitabletradingtips.com/profitable-trading-tips/how-can-you-start-trading-stocks
Every so often you hear about
someone making money in the stock
market.

This is usually when stocks are going
up in a bull market but stock traders
can also make money during a stock
market crash such as in 2008 or the
dot com crash a few years earlier.

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Before We Continue…

If you want to get in on the profits how
can you start trading stocks?

There are two basic issues; picking
stocks and trading them.

What Stocks Do You Trade?

Picking stocks to trade can be as
important as how you trade them.

After all it is in volatile stocks that
traders commonly find their profits.

In our article about picking stocks to
trade we looked at three examples;
volatile stock markets, volatile stocks
based on currency fluctuations and
picking stocks based on the prevailing
interest rate.

the stock market seems poised for a
downturn.

volatile markets are often profitable
markets but picking stocks to trade is
essential to success.

the stock market has had a six year
bull run following the crash of 2008
and the great recession.

now the prospects of a stronger
dollar, higher interest rates and global
economic malaise have spooked the
market into a downturn.

but not all stocks are going to fall and
picking stocks to trade is the key to
success.

as an example cnbc suggests that
european stocks may surge as much
as seventy percent by the end of next
year.

the european economy may appear
mired in low growth and low-flation,
but shares there are poised to surge
as much as 70 percent by the end of
2016, citigroup said.

“european equities offer investors a
historic yield pick-up over both
corporate and government bonds,”
the bank said in a note last week,
adding that the region’s stocks
haven’t been this cheap compared
with credit for over 50 years.

according to this opinion, if you are
looking for stocks that are set to rise
you may want to consider adrs of
european stocks.

if you looking for stocks to short you
may want to look at virtually any us
stock that has a large presence
overseas.

Read the entire article for the full
story. The point is that there are
various factors that drive stock prices.

Picking the right stocks to trade starts
with knowing that is about to change
and how that factor will affect stock
prices.

Technical Analysis

Beside fundamental analysis of
factors that drive stock prices
successful traders learn technical
analysis.

studies of the stock market show that
on days where there are large market
moves timing and nature of news from
the press do not correlate with the
market direction or volume.

day traders using technical analysis
rely upon the fact that investor
sentiment and action tends to repeat
itself.

analysis solely based on technical
factors is a kind of statistical
prediction.

statistics does not predict which
investor will buy which stock at which
price but it does often predict that a
certain percentage will buy or sell
certain types of stocks.

Day traders use computer software
that does second by second technical
analysis of the market at a whole or
the individual stock that you are
trading.

Part of how you can start trading
stocks is to learn how to use this kind
of software using market data stored
on your computer.

Once you have learned how to apply
technical analysis in simulation
trading you can start applying it to real
world trades with the stocks that you
have picked.

How Can You Start Trading Stocks?

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How Can You Start Trading Stocks?