Share Trading

As of 2017, the size of the world stock market by total market capitalization was about $79.225 trillion, making it the second largest in the world. The ever-growing interest of investors makes it one of the most exciting financial markets and one that is able to generate superb returns.
Warren Buffett is among the wealthiest people on the planet. Want to know how? He has been buying and holding shares from the age of 9. Owning shares can change your life! Are you ready to embrace this investment opportunity? Let’s begin!

What are Shares?

A share, also known as a stock or equity, can be defined as a unit of ownership in a company. In other words, when you buy a stock, you become a stockholder, with a share of ownership in the company that issued a stock to you. Ownership is determined by the number of shares you own in relation to the number of outstanding shares, which is the company’s stock held at that time by all its shareholders.
Once you become a shareholder, the success of your investment depends on how well the company performs until you decide to sell your share.

How Share Trading Works

Large corporations issue stocks on the world’s exchanges through an Initial Public Offering (IPO), with the purpose of raising capital in order to operate and expand their businesses. These stocks can be present on more than one exchange. For example, the American tech giant Apple Inc. is traded on the American stock exchange NASDAQ under the tick symbol APPL; but it is also a component of four indexes: NASDAQ-100, DIJA, S&P 100, and S&P 500. In addition, you can own shares in different individual companies, by making a single transaction. This is possible through an Exchange Traded Fund (ETF).

Depending on what they provide, there are two main types of individual stocks: common and preferred.

Common stocks enable you to vote at shareholder meetings and receive dividend payments. Dividends represent the company’s profits, meaning that the more shares you own, the bigger the portion of profits you get.

Preferred stocks don’t offer you voting rights at shareholder meetings, but they give you higher dividends than the common stockholders. Preferred stocks are more secure in case the company goes bankrupt and is liquidated.

How to Invest In Stocks

There are four major ways you can invest in stocks:

  • Through an online brokerage account,
  • Through a dividend reinvestment plan (DRIP),
  • Through a direct stock purchase plan,
  • Through an IRA account.

The most popular and stress-free way is to opt for an online broker, especially nowadays when technology simplifies the process and enriches the quality of the overall trading experience. TradeLTD gives you access to a plethora of lucrative stocks, from several industries – all just a few clicks away.
Since your chances of making a profit depend on the company you’re investing in, most of your research must focus on that company. Some of the most important areas that should be part of your research are:

  • The income and cash flow statement of the company.
  • The balance sheet with the company’s assets, liabilities and the amount owned by shareholders.
  • The annual reports.
  • The proxy statement.
  • The Form 10-K, which represents the annual filing that publicly-traded companies are legally required to send to the Securities and Exchange Commission (SEC).

Before you become a part-owner of a company, it is crucial to do some research in order to work out whether this investment could make you money. Two invaluable checks to make are the P/E ratio or the PER, which indicates if the stock is overvalued or undervalued; as well as the Beta coefficient, which measures the stock’s volatility and its performance over the last five years. All the information is out there and most reputable companies make it transparent for their shareholders.

After you’ve decided which stock to buy, you can make your investment as either a short-term or long-term. While it is not impossible to profit if you go short, it is very risky and you will most likely not get much out of it. Historically, the market had the tendency to grow at a rate of about 7% per year. American investor Warren Buffett has said that his preferred time to hold a stock is, “forever”, and it is true that share trading is usually profitable in the long-term! To benefit from your investment to the fullest, consider creating a plan for the long run. Our team of experts will provide support for all your investment decisions, to ensure you have the best chance at success.

Benefits of Share Trading

  • Investing in shares can help you build and diversify your portfolio. Diversification can reduce the risk and volatility in your portfolio.
  • If the market goes down, you can still make money by shorting the market.
  • Shares can bring you fantastic returns in the long-term.
  • Share ownership allows you to benefit from a growing economy. If the economy grows, so do corporate earnings, and so do your profits!
  • They are so easy to buy and sell. All you have to do is open an account!

Invest in Shares like a Pro with TradeLTD

On our platform you have access to the most renowned and best-performing stocks on the market, such as Apple, Coca-Cola, and Facebook. The stock trading application we provide helps you manage your portfolio and make timely decisions by setting limits and reminders when prices reach certain levels.
TradeLTD offers you:

  • The most popular trading platforms (MT4 Desktop/iOS/Android; MobileTrade, WebTrader).
  • Five account types with negative balance protection, no withdrawal fees, and no commissions.
  • Modern tools & a comprehensive educational center.
  • Cashback programs on each trade.
  • A professional customer support team ready to assist you 24/5.
  • Security of your personal data and capital (SSL technology, AML Policy).

The stock market has changed the life of many investors. Who says you can’t be one of them? Open an account with TradeLTD and start your journey as a shareholder today!