If the same company sees its turnover decrease and make less and less profits over time, it will see its share price drop. In addition, the price of a share also varies according to supply and demand in the markets. The more investors buy (“Buy”) a share, the more it will see its price increase. Conversely, if several investors sell (“Sell”) their shares, this company will see the price of its share drop.
Analyze and choose a market for online trading
Regarding the choice of market in which to trade online with the brokerage firm Global CTB, it will depend on your investment style. If you are an investor who focuses on the short term and the very short term, focus on markets with high volatility. The big price differences will be very present there and the opportunities to make a profit will be numerous.
If you are oriented towards investments based on the medium term and the long term ( swing trading for example), prefer markets whose volatility changes very little. Indeed, this will limit your risks. In addition, prefer markets where companies are secure, that is to say that their activity results are available so that they can be analyzed.
Avoid at all costs
Pennystocks which are dangerous stocks because of their inability to evaluate the companies in which you invest. The prices of these stocks are only set by supply and demand. Thus, many scammers (crooks) will encourage you to invest in a particular company in order to take advantage of the variation in prices. They are the only winners in these operations.
If you are investing in markets with a currency other than the one in which you opened your trading account, consider hedging your position by selling or buying the corresponding currency pair. Despite a sharp rise in a stock in which you have invested, it is possible to lose everything if the currency of that stock falls. So your profits will come down to 0% despite your positive return on investment in the stock.