Stock Market Tutorial
Learning to trade the stock trading market will be much easier for beginner traders that starts by learning stocks basics as they will have the basic ideas and concepts that are required to make it easy to understand what is stocks and how to carry out stocks.
What is Stocks Trading?
Now with the advancement in technology & the growth of the internet stocks and the coming up of retail stocks brokers stocks has now become accessible to retail traders and anyone with a computer that is connected to the internet can start trading stocks. Minimum starting amount required to begin trading is $100 dollars making stocks affordable to many retail traders and investors.
The retail investor can now get access to the online stocks market through these retail stocks brokers. All a trader requires is to open an account with a broker and the trader can then trade with their stocks broker from anywhere in the world.
The retail stocks brokers also provide traders with the capital required to trade in the stocks market using stocks leverage. In the stocks instruments are traded in standard stocks lots or one standard stocks contract. Because many traders cannot afford this, brokers provide capital to traders and traders can borrow this capital from their stocks brokers and trade with it using stocks leverage. For example a broker will provide stocks leverage of 100:1 meaning that a retail trader can borrow up to 100 times of the capital they have. Therefore, if a trader has capital of $1,000 dollars in their account using stocks leverage 100:1, they can borrow up to 100 times their capital, this will be $1,000 multiplied by 100, which is equal to $100,000 dollars which the trader will now control and the trader can trade with this amount in the stock market. This means that a trader with only $1,000 dollars can now trade with $100,000 leveraged amount in Stocks Trading after using stocks leverage of 100:1 from their stocks broker.
Stocks Leverage which means that a trader has access to borrowed capital & can trade with this borrowed capital provided by their stocks broker is what makes stock trading accessible to may retail stock traders. This stocks leverage is what has contributed to the growth and popularity of stocks. In stocks 95% of all trading transactions is carried out by retail stock traders.
Stock Market Moves
In stocks, stocks prices are always moving up or down and it is this movement that traders want to trade in order to try and make a profit from these stocks price moves. The daily stocks price fluctuation is very small and mostly these moves are less than 1 % in value. This is why stocks brokers provide stocks leverage and why most traders use stocks leverage so that they can multiply the profits from these market moves. It is also stocks instruments are traded in big lots of many units so as to increase the profits per transaction - However, this can also increase losses as well if the trades go against a trader's position.
