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What you must know before you start trading
A stock market, sometimes known as a stock exchange, is a financial market where companies’ stocks are bought and sold.
In comparison to other markets, the stock market is often more organized and controlled.
Furthermore, stock and share prices on exchanges are determined by supply and demand, not by a market maker or broker.
Stocks bring buyers and sellers together on a single platform, allowing them to negotiate prices and transfer ownership of shares.
If a corporation is publicly traded, its stock is freely traded on the market, with supply and demand determining the price.
Traders seek to purchase stocks at a cheap price with the expectation that the share price will grow in the future, allowing them to profit from the price gains.
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Why is stock trading superior to other markets?
- You can avoid inflation;
- Profit when buying and selling;
- Amazing possible return rate;
- Capitalize on growing economy;
- A good choice for liquidity;
- Can provide a stable income stream;
- A wide variety of different types of shares.
What you should pay attention to while trading shares:
- Get knowledge and learn basics first;
- Try to diversify your portfolio;
- Don’t let emotions dictate your trades;
- Work with a renowned broker;
- Do your research before trading.
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