In this article, we’re going to discuss how you can successfully make money with stocks in 2019. However, to begin with, we’re first going to discuss what stocks are and how you Can Make Money Trading Stocks?
What is a Stock? Is Stock Trading a Good way to make money?
A stock is a share of the ownership of a publicly quoted company. A publicly quoted company is a company whose shares or stocks have been listed on a financial exchange for trading. A stock exchange is a regulated venue or marketplace which brings together brokers, buyers and sellers. Those who own a company stock can sell their shares to another trader or a dealer, and can also buy shares of other companies from those who own them.
Stocks are traded on national exchanges, and these are found all over the world. However, the most popular stock exchange is the New York Stock Exchange (NYSE), which features the Nasdaq, S&P500 and Dow Jones Industrial Average. Most traders trade stocks here because of the large number of listed stocks. There is also the OTC market where penny stocks are listed. Other stock exchanges that have listed stocks for trading include FTSE100 (United Kingdom), CAC40 (France), Zurich SMI (Switzerland), Shanghai Stock Exchange (China), Xetra Dax (Germany), EuroStoxx500 (Belgium), Nikkei225 Average (Japan), and Hang Seng (Hong Kong).
- Stocks can be traded on a bi-directional basis. You can make money when you go long (i.e. buy) if the market is rising, or go short (sell) when the market is falling.
- Stocks can also be traded as CFDs. Here, the trader trades contracts on the price of the underlying stock without owning the stock itself.
- You can day trade stocks, or you can trade positions for days, weeks or even months.
- Stocks can be traded on leverage. However, leverage provisions for trading stocks CFDs tend to be more restricted than what obtains in forex.
- Stocks tend to form gaps on the price charts as a result of the break in trading times.