Stock Market

How to start in the exciting world of the stock market?

The objective of this article is that the reader of it can get started in this world of the stock market. For this I will give the guidelines to follow, even if it is a bit superficial, and I will give extensive bibliographical information and multiple tips. I will also give my personal vision of what I consider the best way to start and consolidate in this world, explain why I take certain tools and reject others. And I will draw some of my accumulated experiences to the arena after almost 9 years following the markets. I also add things that do not appear in the books. And sometimes not in the courses. And that anyone who wants to invest should take into account and should know.

How to start in the stock market?

the stock market

It is the big question that everyone asks when they start or want to start in this world of the stock market.

  • Theoretical learning: For this I leave abundant bibliography at the end.
  • Once the concepts of theoretical nature have been learned, it is advisable to download a graphics analysis program, to apply what has been learned theoretically. And apply it to what we are interested.
  • Fictitious operative: Once you have the well-known theory and you have put everything into practice in the Visual Chart. It is time for you to operate.
  • Once proven that we know what we do, that we have confidence in our analysis, that we do not let ourselves be carried away by feelings and carrying many months of fictitious practice. We can try to enter with real money. And make real operations upwards with actions. For this we need a stockbroker. Then we will talk about this issue long and hard, since the choice of broker is very important.
  • The next step would be to learn about derivatives theoretically. In the bibliography you have plenty of material. Once you have clear the theoretical arguments, you should perform some operation with a low amount of money, to prove that you know what you do. In futures you can do some intranet and warrants with very little money.
  • I would not use the options I do not particularly like. Once you are sure of what you do, when you see good opportunities and clear or markets clearly bearish or bullish, not in laterality, you can make use of them always with a rigorous care and with stop loss.
  • The accumulation of experience thinks it’s essential. Living, seeing or suffering certain events in the market can save us future troubles. In addition to recognizing new opportunities, we can learn about new products quoted, and enter foreign exchange and other exchanges and assets, always looking for the highest level of information and training.

Depth of the market

 The famous positions of demand and supply, I recommend having a minimum of 5 positions, neither do you need more, yes the more the better, especially in a certain type of values, here I show you a Zadora Otis standings with 5 positions of purchase – sale.

Opening and closing auctions and volatility

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 Regarding the issue of opening and closing and volatility auction I refer to this link written by Juan such in which this question is correctly explained. And thus save a little ink. Just mention two things that are not explained there. The auctions of volatility last 5 minutes, and another very important thing. If at some point you are in a value and you see that they spend about 6 or 7 minutes. And that the value does not come out of auction.

About real time, how to get it?

 This is usually a headache for many investors. There are many ways to get real time, the first is like not paying a fortune a month. Going to a platform that at the same time dispenses the historical database of graphics to perform technical analysis. For example, in Visual Chart, a fairly basic package is about 100 dollars per month. So you have to count on that expense that you should recover in your operation.

Example of Stop Loss

best stock marketImagine that after carrying out an analysis of General of Rent and Machinery you think that the title may have good prospects for revaluation, and you decide to buy the title at 20.00 dollars buying a total of 100 shares on a support and in the maximum area. Your percentage of maximum loss willing to support in each operation is 3%.

How would the order be introduced?

It is also easy. It’s as simple as launching a normal purchase or sale. First of all you must set the price of the shot. This price is the one that activates the stop loss order, then you tell the system, if the price is less than or equal to 19.45, send me a sales order. Then there is the price of execution. You can put 19.40 which are what you want to sell. They also give the possibility of launching order to market, I would recommend the latter, so you leave the market because with a limited if you do not get money where you want you stay waiting.

On the subject of commissions

In this link you have the market commissions that are the same for everyone. We have the settlement canon and then the stock exchange that is divided into a fixed part based on the cash invested and a variable part also based on that cash. In the link you can make calculations of what they charge.

About the terms in which you can invest and safe values

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You yourselves must decide which term is closest to your needs and aspirations.

You must take into account your investment profile and your risk aversion. Although my operation is rather in the short and medium term. I have to comment that there is a series of values ​​that are always rising. And above all raises more the lower the stock market.

About derivatives

Mainly I want to make warnings, to learn about derivatives that are a task that takes time and a lot. In certain types of products. It is best to read the bibliography, learn theoretically and then with very little money to experiment in practice. That only when you have the certainty of having everything very clears.

Richard Brown

I'm Richard, the writer of the blog. I enjoy writing about the lifestyle and all things related to technology. I've been blogging for over six years and I've also been working as a technology journalist for over three years. In my spare time, you can usually find me reading, playing video games, or experimenting with new technologies.

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