Alex Trading’s opinion on stock market investing

Do you want to diversify your investments? Are you attracted to the world of the stock market? Maybe it’s time to get started! Indeed, stock market investing has been widely democratized and is no longer the sole prerogative of professionals or large corporations. Individuals can now join the 29 million online merchants estimated by the CloseCross platform. But beware: as Alex Trading reminds us, if the tools have multiplied in the stock market to promote its accessibility, this type of investment still requires some basic and essential knowledge. Discover in our file how to get started in the stock market and manage your portfolios yourself, which will save you going through a professional.

The characteristics and operation of the exchange

To simplify, the Stock Exchange represents a meeting place between sellers and buyers. Listed companies go out to meet potential investors to develop their business. These exchanges give rise to transactions where the buyer will acquire shares, in other words a share of the company’s capital.

In fact, if for a long time the quotes were carried out “at the auction”, they are now dematerialized. Transactions are thus carried out externally using IT tools, and the values ​​of the shares change continuously during the sessions.

You should know that there are several global exchanges. They have created stock market indices such as CAC40 in Paris, Nasdaq and Dow Jones in New York, Footsie in London or Nikkei in Tokyo.

The first step recommended by Alex Trading to start in the stock market: get trained!

CAC40, Dow Jones, Japanese candles, Forex, scalping, pips… The world of the stock market is not just speculation, far from it! Before embarking on stock market investing, you must first take the time to train yourself to acquire the necessary fundamentals and master the tools of trading.

Some business schools or universities offer education that meets the challenges of the stock market (with specializations in finance, banking or statistics). However, these courses, often offered over several years, are not necessarily tailored to your availability, especially if you are employed.

To overcome these limitations, you can then turn to online training that allows you to train freely. The offer has actually developed a lot over the last few years and makes it possible to meet many goals, regardless of your level. The Internet has also become a huge pool of information. You have access to many media to acquire the necessary knowledge for your trading activity: training programs, videos, live streams, coaching sessions…

However, it is necessary to exercise the greatest vigilance. In fact, according to Alex Trading’s statement, the web also has unscrupulous people who perform various scams (copy-trading forex, MLM, etc.). Therefore, above all, you must ensure the quality and seriousness of the educational platform you have to sign up for.

Determine your investor profile and strategy

Once the keys to the stock market have been acquired, it is necessary to take stock of your goals and your investor profile.

To do this, you need to ask yourself several questions, namely:

  • What is your level of market knowledge?
  • What is your financial capacity?
  • What is your stock market savings?
  • What is your investment capital?
  • What is your risk appetite?

These elements allow you to set up a trading strategy and choose the platform you want to use.

Know that you need to be patient to get started in the stock market. As a beginner, you still have a lot to learn! But according to Alex Trading’s statement, it is by practicing regularly that you become an experienced trader. This is why you should start with a few markets to understand how they work and master them. Go for small positions and place stop-loss orders to automatically close the positions. You can then expand your trading activity!

The basic rules for building and managing a portfolio

To put together your stock market portfolio, first take the time to observe the values ​​and indices of a few securities to understand their behavior.

Once this observation is made, you will be able to invest. Never lose sight of the main rule, which is diversification in order to distribute your capital in a balanced and prudent manner. This approach allows you to limit the risks. You can also enter the markets gradually using daily shocks. It is therefore necessary to follow your investments daily, but also the financial news so as not to suffer the whims of the market.

Professionals also recommend setting targets for gain (upward) as well as a maximum loss floor (downward), the “safety floor.” These criteria must be determined according to your investor profile and your investment horizon.

By investing gradually, you will be able to develop without stress and step by step build the strategy that meets your goals.

Be curious: a new habit to adopt according to Alex Trading’s opinion

The stock market is in perpetual motion. It is imperative that you stay informed about financial news in order to make your investment choices. Curiosity, a sense of observation and openness are the characteristics of a good trader!

Professionals recommend multiplying the sources for this. You can get your information from:

  • websites of listed companies to access minutes of meetings, general meetings or even annual reports;
  • social networks, in particular to exchange with other traders or participate in live shows;
  • financial market authority (AMF) or stock market information websites;
  • specialized economic and financial press, such as Journal des finances, la Vie financière, Challenges and La Tribune.

By training yourself and showing organization, patience and persistence, you will be able to enter the stock market. You will then, according to Alex Trading’s statement, have all the necessary skills to determine your investment strategy and then build and manage your portfolio yourself.

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