Are you curious to know what the stock market is? It is one of the areas of the world of finance where securities such as stocks, bonds, futures, or options are traded. An essential condition for success is a competent, responsible approach and a quick and timely response to all changes. Knowledge of the features of the stock market allows you to reduce the risks of failure and increase potential profit 📈
- What You Should Know About the Stock Market
- Stock Selection Criteria
- How to Trade in the Stock Market on Olymp Trade
- Summing Up
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Explanations and definitions of terms.
What You Should Know About the Stock Market
The stock market is where companies attract investors for their business. It is done through an IPO. In the future, the shares of companies rotate on the stock exchange, becoming the object of purchase and sale. You can make money on stocks by fluctuating prices, investing for future growth, and even taking control of companies by buying large blocks of their shares.
However, in addition to shares, a large number of other assets rotate on the stock market, such as futures, or vanilla options. The main trading strategies in the stock market are Bullish and Bearish.
Although millions of traders trade in the stock market, large investors - corporations, banks, investment funds, etc. set the tone there. Their active actions can influence the trend - to lower or increase the asset's value. As a rule, ordinary traders cannot independently control the market and must adapt to global trends.
Most often, trading in the stock market is associated with buying and selling shares of companies. Undoubtedly, this is one of the most common financial instruments.
Regarding long-term investments, stocks fall into two categories: growth stocks and value stocks.
Stock Selection Criteria
It doesn't matter if you are a professional or a beginner. Every trader faces the question of which stock to buy.
To learn more about stock market shares, take a look at our material.
It is important to understand that the stock market is connected with political and economic events in the world. Negative news causes stock prices to fall and panic among investors. However, positive news leads to an increase in the value of valuable assets.
Regular analysis of the stock market conducted by Olymp Trade experts allows you to choose stocks wisely. Analysis of market trends and a combination of news from both technical and fundamental points of view will allow you to see the market clearly and make accurate forecasts.
In addition, we advise you to use the useful Insights tool developed by Olymp Trade experts. This provides you with up-to-date stock price forecasts and helps you make investment decisions.
How to Trade in the Stock Market on Olymp Trade
Successful stock trading depends on a reliable platform, functional trading tools, ongoing support, and favorable financial conditions.
Olymp Trade is a broker that offers stock trading and the opportunity to make money on the growth of stock prices of well-known companies without burdening yourself with the nuances of owning shares.
How is this possible?
Instead of real stocks, traders trade in underlying assets that reflect changes in their value, just like their prices change in the global stock market. Stocks mode on Olymp Trade allows you to trade in the following algorithm - you buy a stock, and as soon as it has grown in price, you sell it.
Using Volkswagen stock as an example, let's see how traders can profit from the stock market on the Olymp Trade platform.
The Olymp Trade trading platform provides many opportunities to make money on stocks. In addition to Stocks mode, you can use two more trading modes: Forex and FTT. These modes allow you to earn income without directly buying securities as well.
Stock Trading in Fixed Time Mode
A convenient way to make money on the change in the value of stocks is to use Fixed Time Trades (FTT) from Olymp Trade. This trading mode allows you to make transactions within a limited time to make a profit by forecasting the value of stock prices and other assets.
Stock Trading in Forex Mode
If you do not want to limit yourself to time, then Forex trading is a great solution. When trading stocks in Forex mode, your trade can be closed automatically. All that is required of you is to buy the required stock and set Stop Out, Take Profit, Stop Loss or Trailing Stop Loss. Convenient, isn't it?
Among other things, the Forex Mode provides the ability to use the Multiplier. It allows traders to multiply the investment amount and trade larger amounts than their own funds. It is worth remembering that using a multiplier increases not only the amount of potential profit but also the level of risk. Read more about the functions of the multiplier and how it works on the Olymp Trade platform in our article.
The one who owns the information owns the world of finance. At the disposal of Olymp Trade traders, there are many informational tools to reduce the risk of trading. Among them are trading advisors, indicators, profitable strategies, and significant economic news.
Corporate reporting also plays an important role. Read more about Corporate reporting and Financial Ratios in our blog.
The best way to get familiar with trading shares is to use the free demo account first. Having gained valuable experience, join and enjoy all the benefits of trading stocks on a real Olymp Trade account. Step inside and become part of the world of stock trading!Trade Stocks
Risk warning: The contents of this article do not constitute investment advice, and you bear sole responsibility for your trading activity and/or trading results.
Initial Public Offering (IPO) - the first public offering of a company's shares on the stock exchange. As a result of an IPO, the company receives public status, and access to assets is open to everyone.
A futures contract is an agreement that, in the future, one party will sell or buy an asset from another party at a specified price and within a specified time frame.
The vanilla or classic option is a contract under which the buyer of an option acquires the right to buy/sell an asset at a specific time at a predetermined price.
A bullish strategy means making money on the growth of assets, and a bearish one on the fact that assets are falling in price.
A trend is the overall direction of a market or an asset's price.