stock-trading-heading-iconStock Trading

trade stocks with alphabinary

Stock trading has grown exponentially around the world but the trend started much earlier. Investors see this as an easy way of gaining profits.

If a person own stocks, this might be one great step ahead of others. Imagine the life of that particular person; it is a completely different world. Well, owning stocks also means relaxing back at home, and sometimes also means not working. So! far from work life and hectic life schedule, wouldn’t it be nice to sit back and relax? Own stocks, watch your company prosper and earn dividends. But it’s not that easy to get to that position with physical stock trading given the huge sums required for investing. AlphaBinary comes up with the most easy way to start trading stocks within the barriers of binary options trading.

AlphaBinary, has now opened its doors to a lot more practical trading method and technologically speaking, trading stocks has become a current trend for everybody.

Before getting into the technicalities, let’s get into the ABC’s of trading stocks.

What are stocks?

Stocks represent a share in the ownership of a company. Overall, stocks are a claim on a company’s earnings and assets. So, basically, the more stock a trader buys, his ownership state in the company grows. Therefore every step leading towards trading stocks is essential to analyze, as as more people move towards online trading, learning and progressing along becomes a must.

For the information of traders, there are other words that have been coined for stocks, which are:

  • Shares
  • Equity

Therefore becoming a shareholder in a company is a matter of privilege. Holding a company’s stock indirectly means you are also one of the many owners, who also own shares in their respective amount. Being a shareholder entitles a trader to the company’s earnings, which are known as dividends.

Trading stocks in binary options however does not imply buying stocks, basically, traders only have to analyse the trends of stocks and estimate whether it will adopt an upward or downward trend.

Here’s how to trade stocks on the AlphaBinary platform:

  • Choose from the different trading tools available on the trading platform, such as Classic Binary Options, Pairs Trading or Chrono Trading
  • Spot the ‘Hot Assets’ tab and select on the ‘Stocks’ section
  • Pick your preferred stock on the asset segment
  • Accordingly decide upon your expiry time and the amount to be invested

There are two different kinds of stocks:

Common stock

Common shares normally refer to the ownership in a company and dividends earning, on a portion of profits made by the company. The act done cannot be revoked. No money is cut off from the capital of shareholders if a company goes bankrupt.

Preferred Stock

On the other hand, preferred stock hold variable dividends and are guaranteed over long-term. In Preferred stock trading, when a company goes bankrupt, the preferred shareholders are paid before common shareholders. However, the company may buy these stocks anytime from shareholders.

Some common examples of stocks are:

  • Apple
  • E-Bay
  • Facebook Inc
  • Google
  • Barclays
  • Microsoft

Why is it important to understand stock trading?

It is important to know the market in which a trader wants to venture in, and calculate each and every move while trading. In order to trade stocks, it is vital to learn about stocks and grasp it’s true nature of trading. A trader should know how to manage his money smartly so as to be able to make profitable investments.

In plain and simple words people nowadays shop from a huge malls instead of individually buying all of the necessary things from one place to another. So if a person wants to trade in stocks, the simplest way likewise, is the stock exchange market. The stock exchange market, is like the mall, where you get all your stocks under one roof. One example of a stock market is the NYSE ( New York Stock Exchange), which acts like a big home to traders who can come to buy and sell shares of stocks.

Nowadays the stock market is modern and equipped with trading facilities. If a trader wants to trade on the NYSE, there is no need to go to New York to do so. The trader can either call up a broker and the latter will in turn place the stock trades, else, the trader might use online stock trading. This permits the trader to buy and sell shares online for a small fee. Exchanges, permit a rapid trading experience, and if they did not exist, a trader would have had to wait for a call and constantly argue over prices for their shares.

Three examples of Stock Exchanges are:

  • The NYSE ( New York Stock Exchange)
  • The NASDAQ ( National Association of Securities dealers )
  • The London Stock Exchange Group

Why does the stock market fluctuate?

Demand and Supply

The stock market often fluctuates as market forces cause the stock market prices to fluctuate quite often. These fluctuations occur mainly due to demand and supply chain on the market. Demand is determined when there are many people on the market who want to buy stocks. Contrary to that, when more people want to sell the stock shares, then there is more supply. Both the demand and supply affect the price movements.

Fundamental Analysis

It is very psychological how traders choose a particular stock to trade on and dislike another stock. Enters, fundamental analysis, which plays a vital role in getting traders involved in stock trading. Many traders closely scrutinize the pros and cons of a particular company before trading its shares. News (fundamentals), highly influence traders’ decisions pertaining to this matter.

Earnings

Traders focus more on the performance of a company related to its earnings. Investors like to compare the profits figures of various companies, to analyze the actual worth of a company. But eventually, a trader’s sentiments, attitudes and expectations determine the stock prices.

Conclusion

Stock Trading becomes interesting when an investor knows the basics of the process of trading shares of a company. Investing in the right company is essential and AlphaBinary helps traders to choose the right path to trade stocks, as expert traders are always ready to help. So open an account with AlphaBinary to build your trading career successfully.