Frequently Asked Questions

• How do beginners trade stocks?

  The first step anyone new to the stock market needs to take is determining how you want to invest (i.e., being very hands-on with your portfolio, hiring someone to manage your investments, etc.) and what kind of investing account will best suit those needs (i.e., brokerage vs. robo-advisor). Once you’ve made both of these decisions and picked the financial institution you want to open an account with, you shouldn’t have much left to do other than setting up the account itsel𒀰f, allocating your stock budget, and possibly putting down a minimum deposit. After that, your broker will handle the actual investing process in accordance with your wishes.

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• What kind of trading is the safest for beginners?

  The ultimate goal of any trader is to buy low and sꦯell high, so the buy-and-hold strategy is likely a beginning investor’s safest bet. Buy and hold is a passive strategy wherein an investor holds the stocks they’ve bought regardless of market volatility. While an active investment strategy allows for better risk management, there’s also a danger of missing out on long-term returns in favor of short-term gains.

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• What is a trading tool?

  A trading tool, as the name suggests, is anything that allows a trader to invest effectively. 💃Trading tools can include physical items with which one would need to operate in the financial markets, such as a computer and Internet access. However, what most people may think of when they hear this term are digital services that enable a trader to make smarter investments, such as a trading simulator.

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• What tools do you use for trading?

  The only thing that is absolutely necessary for trading (outside of physical hardware like a computer, phone, or tablet) is a trading platform. Beyond this, one of the most valuable tools investors have when making stock trades are stock screeners, which make it possible to quickly sort through the hundreds of stock options available. There are also stock charting programs, which ca✤n be used to analyze a particular stock and/or market sector over periods of time.

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