Shares

STOCK TRADING ON THE FOREX EXCHANGE

Trading stocks of companies in the Forex market without physically acquiring them is possible thanks to contracts for difference (CFDs). This type of trading is the most popular among speculators due to a relatively low barrier to entry and availability, a fairly high leverage, and the ability to make money on the decline in the value of shares. Thus, in contrast to classic investing, aimed at long-term expectations of stock growth in the future, short-term margin trading in company stocks can bring much greater profits.

HOW DOES THE STOCK MARKET WORK?

The stock market is not only a display of the value of a particular company on the market, its capitalization, the amount of revenue or the level of dividend payments, but the subject of trading in the financial market. Forex traders can predict changes in the demand-to-supply ratio for this type of financial instruments due to unexpected results of macroeconomic reports or a shift in the conjuncture of economic sectors. This, in turn, makes it possible to profit from stock trading without much effort in terms of analyzing financial indicators or the investment attractiveness of companies.

HOW TO TRADE SHARES?

Despite the specifics of stock trading due to the limited trading time in certain trading sessions, the volatility of this financial instrument allows you to count on a much higher level of profitability in a short period of time compared to other types of trading instruments in the Forex market. There are various strategies for trading stocks based on fundamental and technical analysis or a combination of both.

FUNDAMENTAL ANALYSIS

Fundamental analysis involves monitoring the financial performance of a company, its market capitalization, sales and profit growth rates, as well as innovative and technological factors in terms of the potential for rapid expansion. Some companies have a high level of dividend payments to investors, which affects the value of the shares. Others are attracting investors with explosive growth opportunities through unique approaches and know-how.

TECHNICAL ANALYSIS

Technical analysis is based on mathematical models describing market processes in the past. The main postulate of technical analysis states that all processes affecting pricing are already included in the current price, and the future direction of the market movement depends on past performance. The most popular application of technical analysis for stock trading is the use of various technical indicators that give trading signals to buy or sell stocks, indicate overbought or oversold levels, identify possible price reversal levels, and calculate the depth of protective orders and quotes to fix profits.

SHARES OF THE WORLD'S BEST COMPANIES

The world's best companies are represented by global corporations and the most expensive brands. Among investors and traders in the financial markets, the most recognizable brands are the most attractive for purchasing stocks. Giants such as Alphabet (Google), Microsoft, Apple, Tesla, BMW and Samsung have not only huge capitalization and investment attractiveness, but also have the largest volume of daily stock trading on the stock exchange.

ADVANTAGES OF STOCK TRADING ON FOREX

Trading stocks on Forex has several indisputable advantages:
1. Low threshold for entering the market and the minimum level of initial capital;
2. Availability of leverage for more profitable trading;
3. Ability to trade for a fall;
4. High volatility and profitability of assets;
5. Excellent liquidity and quick exit from the market.