You can find a lot of great information online about every aspect of stock trading, however, in order to make things even easier, at EverFX we have curated a large volume of educational resources all in one place in order to save our clients time and energy. Coming from a forex trading background, many of our traders are quite new to the world of equities trading and so we have geared the majority of our stock trading content towards these beginners. This includes information about how stock trading differs from FX, what influences stock markets and how to follow the news events that stock traders rely on. We also offer an earnings calendar that our traders find particularly useful during earnings season and a comprehensive education center that is entirely free of charge to all of our registered users. This is a valuable tool for newcomers as it includes an extensive ebook and video library on all aspects of all the markets we offer. We also hold regular webinars where you can join in live and learn from professional traders.
When companies want to raise funds in order to expand their operations, many chose to conduct an IPO, or initial public offering. This involves selling shares in the company to public investors. Once these shares are floated, they become a part of the public stock markets and are available for all registered traders to buy and sell. A stock represents a small fraction of a company. Depending on the type of stock it is, it can entitle the holder to a dividend payment as well as to voting rights in board meetings that are proportional to the amount of stock that is owned. Stock trading involves the buying and selling of these shares. Trading shares is a way to invest in the future success of a company as stock prices have been known to rise astronomically when companies become successful in the market. It is also a way to earn a passive income from dividend payments.The stock market is enormously important to the economy of the United States and has been massively influential in the development of trading itself. Contrary to popular belief, much of technical analysis, which is the study of chart patterns and how market cycles and trader sentiment are reflected in chart price action, was actually pioneered by stock traders.
Trading the stock market is much the same as trading any other market. First, you need a brokerage that offers trading facilities on the stock market assets that you’re interested in. At EverFX we offer a complete multi-asset trading environment that includes FX, precious metals, energy, indices, cryptocurrencies, and over 50 stocks belonging to the world’s largest and most influential companies. Next, you need high quality information on how stock trading works as well as what impactful news events tend to move markets and when markets are open for business. At EverFX, we offer a comprehensive education center that details everything you need to know about trading all the assets we offer, an earnings calendar that details when the companies we offer are due to release earnings figures, and a timetable of market hours for your convenience. Finally, you need a brokerage that you trust to execute your orders in a rapid and reliable way. EverFX is fully regulated in two jurisdictions and is committed to fair trading and best execution practices.
A great way to begin stock trading is to copy trade. This allows you to benefit from the expertise of other more experienced traders by mirroring their positions. EverFX offers a copy trading service through ZuluTrade to all of its clients. For those who want a more hands-on experience but are not quite ready for live trading, another great way to experience the thrill of stock trading is to practice trading on demo before committing any of your own capital to the markets. Demo trading is one of the best ways to get accustomed to trading any asset class in a risk free environment. Education should always be your first step, learning how markets work and how their movements are reflected on the charts. However, nothing beats hands on experience when you have learned the basics and demo trading is the single best way to put some serious hours into the markets without having to risk your own capital.
A live stock chart is a chart that displays the changing price action of a stock as and when it takes place during the times that the stock is being actively traded. When you watch financial news on television, there is usually a ticker displaying the performance of various high profile stocks and other assets. This is a static price taken at regular intervals to inform viewers of how that asset is performing over the day. Trader require much more resolution than these static snapshots, so their charts offer live prices that update in real time as stock prices change. Short term traders, particularly, require live stock charts as they are viewing them at very short time frames. During market hours a live stock chart will be moving up and down as traders buy and sell the stock in question. When markets are closed you will see no action on the chart as no trading activity is taking place. EverFX offers high quality live stock chart feeds that can be viewed on our MT4 platform on all of the stocks we offer for trading.
Unlike the forex market, stocks do not trade around the clock. They usually trade throughout the business hours of the region that they are listed in. This means that there are long stretches of time each day, and indeed over the weekend, in which no trading is taking place. However, even though the stock may not be trading, this does not mean that there is no new information coming out that will affect its prospects. These changes in outlook and sentiment are the reasons for market gaps. A market gap will take place when the stock reopens for trading and the market is struggling to price-in the developments that have occurred since the last time it was live. If the news is good, you will notice a gap on the chart between the last close and new opening price. If the news was bad the reverse often takes place, with the opening price being significantly lower than the price it closed at on the last trading session. Gaps can occur for a variety of reasons. One of the most common reasons for seeing a gap in price action between the close of one trading session and the open of the next, involve earnings announcements. Four times per year, at the end of each quarter, publicly traded companies announce their earnings. These periods are known as earning season, they are widely traded and can be the catalysts for large swings in price. If a company announces its earnings after the closing bell marking the end of a trading session, and the figures surpass the market’s expectations, it is common for there to be a gap in the price at the next market open. This is because traders will all be buying the stock at the first opportunity they get. The reverse is true if earnings come in significantly lower than expected.