Trading shares with CFDs allows Traders to gain full exposure with a small initial investment. David Berg - Financial Analyst

Transcription

1 Trading shares with CFDs allows Traders to gain full exposure with a small initial investment David Berg - Financial Analyst

2 Introduction to Stock Trading When an investor purchases a share of stock, they're investing directly in a company. In exchange for this investment, they're given a piece of ownership in that company. Stock traders buy and sell trillions of dollars of stocks every day on various stock exchanges throughout the world. Despite a wide variety of investment opportunities available today, investors continue making the choice to purchase stocks for many reasons. Here are some of the biggest benefits of stock trading: Partial ownership means that investors are shareholders and can enjoy dividend payments. Stocks in volatile or new companies can provide enormous returns. Stocks in steady, established companies can provide good return with minimal risk. Stocks are a great way to diversify your portfolio if it's mostly in bonds and savings. Below, you'll find all the information you need to get started trading stocks and making profits of your own. TYPES OF STOCK In general, there are three types of stock: Common stock. These are also known as ordinary shares or common shares, and grant an investor their proportion of dividends, earnings growth, and voting rights. Buying common stocks makes you a partial owner of a company. Class A types of common stock have voting rights, while Class B common stock does not. Preferred stock. During bankruptcy, holders of preferred stock are granted priority over the holders of common stock. However, preferred stockholders usually don't have any voting rights. Cumulative preferred stock means that a company's backlog of owed dividends must be paid in full at a later time, while non-cumulative preferred stock where dividends do not have to be repaid if they aren't declared. Unlisted stock. These are stocks that aren't listed on a major stock exchange, and they can be either preferred or common. Unlisted stock is purchased directly from a company, and is much riskier than buying stock from an exchange. Some investors do invest in unlisted stock despite the risks because they can offer incredibly high yields. OTHER IMPORTANT CONCEPTS When you're trading stocks, there are a lot of different things to take into mind. You need to know what kind of stock you're purchasing, and everything about the company you're investing in. This includes financials, market trends, valuation ratios, and recent news stories.

3 Introduction to Stock Trading There are other important things you'll also need to keep in mind: How liquid is the stock? If you're purchasing a stock that doesn't get traded very often, you'll often be at the mercy of the market when you want to sell it. Usually, common stocks are highly liquid. What is the annual yield? Your dividend will be based on your annual yield, and is the payment you'll receive every year for owning stock. If you receive high dividends, you'll make money even if the stock's price stays stagnant. Does this stock fit into my portfolio? If you've invested in nothing but energy stocks, you might need to diversify a bit. TRADING STOCKS WITHOUT OWNERSHIP If you want to trade stocks without actually purchasing an ownership share in a company, you may do so by purchasing CFDs. CFDs, or contracts for difference, are sold by private trading firms as an agreement to pay the difference between a stock's buy and sell price. You may hold a CFD for as long or as short a period of time as you'd like. CFDs do not come with ownership rights like dividends or voting rights, like many stocks do. They're popular among many traders, however, because of some distinct advantages that they offer: There aren't any brokerage fees for CFDs, usually you only have to pay a small spread. You can buy and sell short on assets rather than just investing in them. CFDs can be bought and sold on leverage, so you can own $10,000 worth of shares by only investing $1,000. Buying CFDs is simple and can be done completely online. You don't have to go through the process of buying through a brokerage or going to the NYSE. If you're ready to get started buying and selling stocks using CFDs, make sure to create an account with us today. We offer the lowest spreads around and a free sophisticated trading platform to make stock trading easier than it's ever been!

4 10 Best Stocks Investment for Apple Apple is an American multinational technology company with market cap of 740$B. This company has a good history, the stock reached a few time the price of 500$ and evenhigher. What indicate that she can reached this price again. Alibaba Alibaba Group Holding is a Chinese e-commerce company that provides Consumertoconsumer, business-to-consumer and business-to-business Sales services via web portals. Alibaba is only second to amazon with market cap of 262B. Intel Intel Corporationis an American multinational corporation and technology company. It is the world s largest and highest valued semiconductor chip makers. Facebook Facebook is an American company, one of the bests stock in the social media. This company has a market cap of 405$B reached the price 140$ and this stock has apotential of reaching much higher prices. GE General Electricis an American multinational conglomerate corporation incorporated. This company operate in many area like the Energy Connections, Global Research, Healthcare, Lighting, Oil and Gas. The company was listed the largest in the worldamong the Forbes Global Jpm JPMorgan Chase & Co multinational banking and financial services holding. It is the largest bank in the United States and the world's third largest bank by total assets. With the change of the rate the bank stock is very attractive now.

5 IBM (IBM) Cloud, A.I. and mobility will drive Big Blue back to glory in IBM (IBM) is a turnaround story. The company is transforming its business to meet the needs of the new era of cloud, mobility, security, and artificial intelligence. IBM s transformation had begun to show some improvements in It gained momentum in It will probably continue to bear fruit over the next few years and lead to higher revenues and profitability. Alphabet (GOOGLE) The market value of Alphabet is $552 billion, so it s hard to fathom it getting much bigger. But the owner of Google, YouTube and other tech businesses hasn t peaked. Recent product launches include the Pixel smartphone and Google Home (a virtual personal assistant). Add those products to Alphabet s other businesses including thriving sales of online ads, apps and cloud-based services and you get a firm that analysts believe will generate 20% profit growth in At 27 times estimated earnings, the stock doesn t look expensive. Amazon.com The giant of online retailing also has a strong position in cloud computing, and is moving aggressively into video content and artificial intelligence (not to mention drone delivery). Amazon.com took a hit in October because of disappointing earnings, but this well-run company continues to have its eyes on the long term. Value Line sees revenues rising 19.5% annually over the next five years. Palo Alto Networks Palo Alto Networks sells sophisticated hardware and software to protect networks against cyberattacks. Sales are rising steadily as the firm expands its product lineup and signs up more customers for subscriptions to its cloud-based software, creating revenue streams that should last for years. Although growth is slowing, analysts still see revenues increasing a healthy 28%, to $2.3 billion, in the fiscal year that ends in January 2018.