SHARES

In few words, stocks are a smart way to build wealth without having to know technical knowledge of how the company works. They are a kind of investment, which gives you the right to profit from the future profits of the company.

Everyone is welcomed to invest in stocks. It is how people multiple their sources of money nowadays. For companies, stocks are a way to raise money to fund growth, products and other initiatives.

When people are willing to buy the stock, its price will go up. If people are selling the stock, its price will tend to go down. The relationship between supply and demand is highly sensitive to the news of the moment.

WHAT DRIVES STOCK PRICE CHANGES?

Fundamental Factors

In an efficient market, stocks price movements would be defined mainly by fundamental factors, which refer to two things:
1) An earnings base, such as earnings per share (EPS)
2) A valuation multiple, such as a P/E ratio
If somebody is owner of a certain stock, he will claim on earnings and earnings per share which is the return from the investment. Once you have bought a stock, you are automatically gaining the right to have your portion of profit on the entire future stream of earnings.

Technical Factors

Technical factors are a group of external factors which might be able to shake the supply and demand for a company’s stock.
Some of them indirectly affect fundamentals. Economic growth contributes to earnings growth rate.

1) Inflation
2) Economic Strength of Market and Peers
3) Substitutes

4) Incidental Transactions
5) Demographics
6) Trends

7) Liquidity

News

Well it is not an easy task to quantify the impact of unexpected news and developments of a company or an industry branch
or the overall global economy. The political events, agreements between countries or companies, new product releasing,
new companies coming in the market and other unforeseen events can shake the stability of a stock price.

Since sudden events happens across the globe and markets of different regions and industries are connected, what happens in one country might impact investors in another, almost immediately.

Market Sentiment

Market Sentiment has to do with market participants psychology. This is perhaps the most annoying category. It is mostly subjective
and biased. You can make up your mind over how a certain asset will behave in the future, and the future might confirm your expectations or even break you down.
This happens because the market might move the direction while a news is happening suddenly, and change the direction you were expected.

FOUR THINGS TO DO BEFORE YOU START TRADING STOCKS

Acquaint yourself with the stock market

Stocks are small parts of a company. The stock price, also named a “share”, mirrors the value of the company, as it is determined
by the traders and investors. Stocks do not have a certain price all day long, it continually fluctuates.

Stocks are traded on a stock exchange, such as the New York Stocks Exchange (NYSE). This stock exchange is available during 9:30 a.m. to 4:00 p.m. Eastern Time. Most of the operations are done during these hours, even though it happens to have stocks buying or selling outside this interval (pre-market and after-hours trading).

Establish your purpose for trading

Make clear to yourself what you want out of trading. Set some clear goals. And check how you are going to achieve your goals.
How often are you going to trade? A couple of times per week? Maybe working at night if you are working full time job during
the day, or you want to buy stocks and hold them for the long term?

Well, there is no best plan about that. Go for all of them or one of them. It depends on the strategy you choose, if you want to be a day trader, you will keep you trades during the day only. Investing is a kind of trade but longer in time, the trader will keep the trades open for many months or even years. Before deciding which to pursue, consider your finances.

Consider your finances

The amount of capital needed to start trading depends on the type of asset you want to invest your capital. Even though you
are allowed and advised to diversify your portfolio, so you invest small amount in different stocks. We have prepared
5 trading accounts and you can check where you find yourself more comfortable.

Practice before depositing money

As you come to this point, specially of you do not have a previous experience, you better have some practice through demo accounts.
You practice with no putting your capital in risk. So, you formulate and test your strategies on historical data. Open positions based
on this strategy with fake money and analyze if they can produce any profit.

TOP STOCK PICKS TO BUY FROM 10 SECTORS

Communication services: Walt Disney Co. (DIS)
Consumer discretionary: Advance Auto Parts (AAP)
Consumer staples: Mondelez International (MDLZ)
Energy: Diamondback Energy (FANG)
Financials: Synovus Financial Corp. (SNV)Communication services: Walt Disney Co. (DIS)
Consumer discretionary: Advance Auto Parts (AAP)
Consumer staples: Mondelez International (MDLZ)
Energy: Diamondback Energy (FANG)
Financials: Synovus Financial Corp. (SNV)

Health care: Cigna (CI)
Industrials: Raytheon Co. (RTN)
Information technology: Dropbox (DBX)
Materials: Berry Plastics (BERY)
Real estate: Invitation Homes (INVH)

STOCKS LIVE PRICES

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