What is Stock Trading? Getting Started with Stock Trading
Year-to-year popularity in stock trading is increasing, as millionaires seem to fall from the sky, one after another, offering online courses to help you get rich. So, what are the basics of stock trading, and how do you dive into the stock market? This article will cover the core essentials of starting as a stock trader. Stock trading refers to buying and selling shares of a particular business. When owning a stock, you own a part (share) of a business. Stock traders rely on the price movement of stocks to turn a profit, either long-term or short-term.
What do you need to learn?Try to educate yourself before starting your trading, not only on a professional level but also on your relationship with money. Is this your first time trying lucrative strategies to make a quick buck? Chances are you’ll have difficulty succeeding in the stock market. If you want to become a successful trader, it is crucial to properly understand market behavior and macroeconomic influences. Moreover, you must determine price action effectively. Price action refers to the movement of a price plotted over time and is considered a critical fundamental to technical analysis. You might want to consider reading a few books on trading stocks to learn new strategies and educate yourself on the stock market dynamics. Below, we’ll mention three books that will help you get underway:
- Technical Analysis of the Financial Markets by John Murphy
- One Up On Wall Street by Peter Lynch
- How to Make Money in Stock by William O’Neil