Stocks are securities issued by a company aiming to attract additional capital from investors. They, in turn, purchase stocks at market prices, with the prospect of further growth. The better a company is doing, the more expensive its shares are. The higher their price, the more profitable the deal made by the investor. However, if the value of securities after the acquisition begins to decline, the investor suffers losses, because he bought them at a higher price.
Initially, stock trading was impossible without the actual purchase of the asset, i.e. the securities themselves. Over time, CFDs were introduced to make this market available to a wider audience.
Contracts for Difference, i.e. “CFDs” appeared in the early 90s. They allow private traders with small capital to make deals on changes in the market value of metals, indices, energy resources and other categories of instruments, including forex and stocks.
Trading stocks involves immersing the trader in the news on the companies that are selected by him. These could be Apple, Coca Cola, Facebook, JPMorgan, IBM, Netflix, and others. It is important to follow what is happening in the world: this allows you to understand the main global trends. Also track the data of the indicators for the country in which the selected company operates (head office and production). This will allow you to learn how to predict trends such as rising unemployment, declining productivity, etc.
Also, pay attention to news from the industry in which the company operates. To do this, keep track of the main stock indices: some of them combine stocks of corporations from the same area (for example, industry or IT). The higher the quotes of such indices, the better the companies of this type are doing in general.