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How to Buy & Sell Stocks Online

Whether you’re a tech whiz or finance geek, why not invest in companies that fascinate you? ForexBros has got a variety of Stocks & Shares to choose from.

What is Stock Trading?

Stock trading entails buying and selling company shares in order to profit from price movements daily. Since this form of investing prioritizes short-term profits over long-term gains, stock traders closely watch price swings in these stocks and then try to buy low and sell high. 

Why Trade Stocks

Stocks can be an excellent addition to any financial portfolio. Investing in various firms’ Stocks can help you build your savings, safeguard your money from inflation and taxes, and maximize your investment income. 

Investing in the stock market has its own risks, and it’s important to assess your risk tolerance before investing. Nevertheless, the benefits are equally rewarding, and here are some: 

Rate of Return
The possibility to generate substantial rates of return is perhaps the most significant advantage that stock market investing offers. Unlike an interest-bearing account which may pay 5% per year at most, stock market trading can see a 5% return in a single day, and much more for the savvy investor.
Acquisition of Assets
Stock market trading involves the acquisition of real, valued assets in the form of the shares purchased. Unless something catastrophic happens to the underlying business, any shares you buy will keep some value that can be extracted later, making it a more secure investment with long-term value locked in.
Dividend Yield
Many companies reward their investors with a dividend, and this income can help them pay for another investment to grow their portfolio over time or to fund a retirement.

Stock Trading Disadvantages

Risk
The main downside of stock market trading is that one bad move might cost you your entire investment and more, depending on whether or not your positions are leveraged. Risk management is a critical component of every successful trading strategy and recognizing that markets can swing heavily against you in the blink of an eye is key.
Knowledge
When it comes to trading the markets, you're up against the know-how, resources, and intuition of professional traders and legit experts. Developing the right knowledge needed to execute effective trades and interpret market movements takes time, effort, and a great deal of trial and error.
Unpredictability
Even the most experienced traders can’t always interpret the markets and predict where it is going. Stocks are very volatile as they are constantly impacted by the continuous flow of news, announcements, central bank rates, etc. Market mood also has its huge share of influence along with other reasons.
Deposits & Withdrawals

Stocks vs Indices

An Index Fund is a portfolio of assets held and managed by an investment firm. This is typically made up of Stocks & Corporate Bonds. Similar to Stocks, you invest in an Index Fund by purchasing individual shares.

So to put it simply, the key difference between the two is: When buying Stocks you are investing in an underlying company and hoping that company performs well, however when you invest in Indices you hope the entire sector of the market that the index tracks will do well and cause all of the companies in it to gain value.

It’s Your Time to Flex as a Trader!