How Does Stock Trading Work?

Stock trading is basically buying and selling shares of a company to try to make money on price changes. There are plenty of stock exchanges around the world such as New York Stock Exchange (NYSE), Chicago Mercantile Exchange (CME) and National Association of Development and Dealers Automated Quota (NASDAQ).

When you buy a stock, you’re essentially placing a bet that the company will perform well and that the value of the stock will increase over time. Conversely, when you sell a stock, you’re betting that the value of the stock will decrease.

As a basic strategy for successful stock trading, it is important that you do your research and understand the company’s financials, growth prospects, and overall industry trends.

What to Consider Before Starting Stock Trading

Before you start trading stocks, there are several important things to consider:

Risk tolerance: Stock trading involves a certain level of risk, and it’s important to assess your risk tolerance before getting started.

Time horizon: Consider your investment time horizon. Are you planning to invest for the long-term, or are you looking for short-term gains? This will influence the types of stocks and strategies you choose.

Financial goals: Consider your financial goals and how stock trading fits into your overall financial plan. Are you investing for retirement, to pay for a child’s education, or for other reasons?

Education: It’s important to have a solid understanding of how the stock market works and the various strategies and tools available to you.

How to trade stocks with CDO Markets:

1. Open an account to start trading stocks and many other instruments.
2. If you are not ready to go live yet, you can always practice through a demo account with virtual funds.
3. Account opening will unlock your MyCDO Client Portal access, where you check everything to do with your account in one central place.
4. Make sure that you learn fundamental and technical analysis to see which methods suits well for you.
5. Do not forget to take a look at our cutting-edge trading platform CDO Trader with a lot of technical indicators and tools to help with your trading plan.

Join CDO Markets now to trade stocks like Apple, Microsoft, Amazon, Tesla, Merck KGaA and many more!

Account Opening

Open A Demo

CDO has wide range of tools, professional and friendly support for clients to achieve their financial markets trading goals. Open a demo account now to enjoy this experience with virtual deposit.