Are you a full-time traveller and want to make an income while travelling? Why not invest in stocks? Investing in the stock market is not generic. There is no single and exclusive recipe that works for everyone simply because we are not the same and do not react in the same way to the same stimuli.
Before launching into the Stock Market world, it is necessary to take into account a series of basic tips. In this post, we explain what you need to know before you start trading stocks.
- How To Buy Shares?
The first thing you need to get started is to have a bank account that allows you to buy shares or open an account with an online broker. Some brokers like https://www.thestockdork.com/ are cheaper, and the entire process of registering, buying and selling securities is done online and entails lower costs than traditional banking.
This is ideal for a traveller since you can do it from anywhere. Also, these types of online accounts allow you to start investing with very little money and are ideal for testing and training.
- How Much Money Can You Invest in The Stock Market?
This answer will depend on you. A person who starts investing for the first time compared to another with a long trading experience is not the same.
If you are starting, begin with an amount that you feel comfortable with and that little by little, you see how to access the progress.
- What Stocks To Buy
This would be the million-dollar question. There are more solid companies with recurring income that are much more stable than others. Thus, these types of companies tend to have positive long-term profitability. Although, it is true that you cannot expect spectacular increases in their price.
Buying one or the other shares will depend on your investor profile, how much you want to risk and the profitability you hope to achieve. The best thing is always to have a diversified portfolio of stocks, which guarantees you profitability and gives you potential, running a small risk.
- Books To Learn To Invest In The Stock Market
Reading books about the stock market is one of the essential steps you must take. If your focus is on trading, you should read books about trading. If you are a long-term investor or in dividends, you should read books appropriate to that discipline.
- Find A Good Broker To Invest In
Choosing a good broker doesn’t have to be a headache. Traders will need a broker with low commissions and a multitude of assets available. Long-term investors and dividend investors, one that is cheap and does not charge maintenance fees.
We all need security. You don’t have to dig far to find a decent broker, nor is the broker going to be the cause of your success or failure.
- Follow the Trend, But Not the Mass
When the time has come to enter the market and start trading, it is advisable to invest in favour of the trend. Stock prices always move in trends, some easy and others more difficult to identify. The trends can last for years, and it is advisable to follow them. So it’s advisable to be patient before venturing to identify a change in trend.
On the other hand, this does not mean that you have to follow the indications of the market in general strictly. It is also necessary to have a sufficiently critical and independent spirit not to get carried away by moments of panic or euphoria. In addition, if you manage to stay safe from the so-called market sentiment, it will be easier to identify investment opportunities.
- Apply Stop Losses
Stops are the best tool that a trader can have. Sometimes a stop jumps when it should not because then the operation favours your expectations, but without you. The stop saves you from bigger losses.
Another thing is that the stop should be located in the correct place. So Trading Journal is essential to check if the stops are well or badly placed or if the operation has the appropriate risk-reward ratio.
Following these rules is not always as easy as it sounds because they require patience. It’s one of the characteristics that every investor should have. In any case, if you still do not see clear investing under your criteria, you can always leave your money in the hands of professional brokers.
Stock trading, if done well, can facilitate your trips across the world. Now that you have some basic guidelines to get started, what stocks are you going to buy?