how does the stock market work for dummies ?
The operations in the securities markets can be very different depending on the different personal strategies of each investor and adjusting these habitual movements of purchase and sale of shares to each temporary period or specific technical situation of the market.
To invest in the stock market and manage your own investment portfolio you must send the appropriate orders to your legally authorized financial intermediary (broker) and you will execute them according to your own indications referring to the volume of securities to buy or sell, amount of money per operation and prices determined in the quotes of the value or index selected to invest. All this must be done in a clear and effective way to avoid making some mistakes or inaccuracies that in the end can hurt your pocket. Therefore, let’s see some aspects, factors and tips that you must learn or remember (depending on the cases) for a good stock trading.
Order the operation using certain criteria
It is usually the most common and consists of manifesting (sending) to the broker the specific purchase-sale orders in terms of prices, volume of shares or specific execution period (hour, day, week, month … etc). As the orders are very specific only the investor will be responsible for the final result. Before this type of orders the intermediary will be limit to compliance with the client’s instructions without making any other technical assessment on them.
Order the operation without defining any specific criteria
According to each contract of advice and particular management with the broker, if no assessment or order is made and the management is the responsibility of the broker, this may postpone the purchase-sale operations so far that it estimates or values more optimally for the interests of its client, assuming at the same time the responsibility of the final financial result for which it will be responsible.
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Verify the trading volumes of a stock or stock
Each listed company has its shares quoted daily in the market and during each trading session period you can check the relationship between the volume of shares traded that day and the weekly average or monthly, to observe the greater or lesser interest of the market consensus for these securities.
The time factor in investment
To be successful with investments in the stock market, it is very appropriate to buy or sell the shares at their ideal moment, gradually acquiring the appropriate technical knowledge and thus make profitable operations by taking advantage of technical support and resistance. in the prices . These execution orders, normally direct via the Internet to your broker, will be refer to those purchase-sale levels previously plan according to your own investment strategy.
The Lucky Factor Also Play With You
At this point as a reader and follower of this section you should know and know that as they say these phrases well known in the world of investment: “Nobody will give you your money” … “A higher return for your money is link to a greater risk financial “…” Equity is that … variable and unpredictable “.
When you invest in the stock markets you can win or lose, you just have to try to expand your profits as much as possible and, above all, radically cut your possible losses, before they become excessive for your portfolio. The luck factor also counts for all the investors and usually or almost always, it is not usually on the side of the newest or least experienced.
Good professional advice may limit your risks and enable you to make better decisions in your stock trading, however you must learn, remember and assume before investing with your real money the vital importance that has for your interests the: “Execution of stock orders and the luck factor. “