FREE Webinar: Stocks Made Simple
Complex times make complex markets. Here are stocks made simple so you can start trading the stock markets like a pro.
As technology and world events change rapidly, financial markets rise and fall at a word or headline. Now more than ever it’s important to know how to navigate the stock markets to maximize profit and avoid the losses lurking around the corner.
There are three common ways of making money from the movement of stock prices:
a. Going long or short on the underlying shares;
b. Purchasing or writing options on the stocks;
c. Trading Contracts for Differences (CFDs).
Buying and selling the underlying shares is the most basic way of trading the stock markets. You own the shares, which means you own a piece of a company. Most common shares carry voting rights. But buying the shares usually means you have little to no leverage. And it’s not always possible to short a stock. If you do short a stock, your losses can be unlimited as there is no ceiling to how much and how quickly the trade can go against you. Institutional investors experienced this reality when they were short the U.S. stock GameStop, and the price rose multiple fold, causing huge losses for short investors.
There are two types of equity options: calls and puts. Call options give you the right to buy a stock; put options give you the right to sell a stock. Call options can provide leverage to long positions. Put options make it easy to profit from falling stocks without the risk of unlimited losses. Options can be complex and require a learning curve. When you are long an option, dissipating time value can work against you.
CFDs allow for leverage, but you don’t own the underlying stock, which means no voting rights. CFDs carry overnight financing costs. Whenever you have a leveraged position, you risk multiplying your losses and facing margin calls. CFDs can be a low-cost way to access non-domestic stocks.
One of the most important things you need to trade stocks is a good, reliable broker who can help educate you and provide a top-tier trading experience. One such broker is InvestMarkets, who I think is worth checking out. https://bit.ly/3CuEmeO
Let’s take a look at seven important stocks: 4 in the electric vehicle sector, namely Tesla, Nio, Xpeng, and Ford; 3 chip companies: Intel, Nvidia, and AMD; and one technology company, Cisco.
If you’re on the hunt to make money in the currency markets, or even if you’re just looking for an education,
SUBSCRIBE to DailyForex’s channel so you don’t miss the webinars that Forex brokers and traders are buzzing about!
Join us on all our platforms to get Forex market updates, news, forecasts, analyses and signals:
DailyForex: http://bit.ly/3picEei
FX Academy: http://bit.ly/3ohnFv9
Twitter: @Daily_Forex https://bit.ly/3sUfsQO
Facebook: http://on.fb.me/1avMj34
Telegram: http://bit.ly/3qSzqdc
cisco academie
