Currently, more and more millennials are moved to play stocks and become traders who can provide a promising income as a passive income.
But before that, to be able to go directly and play stocks on the stock market, it’s a good idea to first understand and learn how to trade stocks, this is so that you don’t make the wrong move when playing stocks.
Stock trading which if interpreted literally is the activity of selling shares carried out on the stock exchange. Meanwhile, stock sellers or what are known as traders are stock owners who intend to profit from the activity of buying and selling securities
Steps to Learn Stock Trading
As technology develops, there are many ways that make it easier for you to start learning stock trading either self-taught or learning through friends who already know and play stock trading.
There are at least 5 steps to start learning stock trading, here are the explanations:
Learn Stock Trading Through Books or the Internet
If you decide to learn to self-taught stock trading, you can choose to learn through books or e-books or through internet technology. There are many official sites that make it easy for you to learn stock trading from an early age.
In addition, also learn the strategy that must be done when you first decide to play stocks, starting from the amount of the investment value, determining the type of stock to be purchased in detail so that you do not experience losses.
Determining the Amount of Stock Trading Budget
The next step, if you feel you understand enough how to trade stocks, is to determine the amount of budget or capital that you want to include in the stock market. It’s best, in the early stages, include the minimum possible capital, the goal is for the learning process and hands-on experience when you start deciding to play stocks.
Define Broker Account
Then, specify a broker or brokerage account as a condition for starting trading. A brokerage account is a company that will process trades on your behalf as an account user.
Be careful in choosing a brokerage account. Choose an account that has a good reputation by first looking for references to the brokerage account you want to choose.
In addition, each broker or broker applies different stock management commission fees. However if you intend to buy individual shares through a broker then you will not be charged anything.
Studying Traded Stocks
After selecting a broker account, you will automatically be able to carry out investment trading activities on the stock exchange. Before deciding to trade, you should also study the type of stock you want to sell.
Check the financial analysis to the company’s performance against the competitor company where you buy shares.
Choosing the Right Type of Stock Trading
When you decide to play stocks, automatically you also definitely have the main goal, namely to make a profit, therefore determine the type of investment trading you want to choose.
In this case, there are two types of trading, namely active trading or trading made by investors at least 10 times a month which is very dependent on the stock market mechanism and daily trading or stock trading activities, either selling or buying shares to gain profits from selling shares in a matter of hours and even minutes or based on stock price fluctuations.