How to investing in the stock market? (complete guide 2022)
Investing in the stock market for beginners ،Many individuals started investing in the stock exchange a long time ago during the various stages of containment.
If you are also looking for a way to grow your savings or a way to diversify your investments, it is not too late. Find out in this article how to invest in the global stock exchange and is investing in the stock market is profitable?
How to investing in the stock market?
Investing in the stock market for beginners ،You should know first that it is possible to invest in the stock exchange through a bank, that is, a retail bank. Banks offer investors the possibility to invest in the stock exchange through a PEA system or a securities account. These two types of accounts allow you to buy stocks or bonds or invest in ETFs.
But how to invest in the stock market yourself, directly, without going through a bank? This is where you can start investing in the online stock exchange, or online trading. For this, there is no need for very complicated or expensive equipment, all you need to start investing in the stock exchange for beginners online is limited to the following tools:
- A computer, tablet, or smartphone.
- Internet connection.
- trading account.
- trading platform.
As you can see, you will most likely already have half of the basic trader equipment at home, ie a computer (or tablet or smartphone) and an internet connection. And we will see that the rest of the equipment for investing in the stock market can be free (opening a trading account and downloading a platform). All you have to do next is open a trading account with a licensed broker on the stock market of your choice and download a trading platform.
How to start trading in the stock exchange?
Let’s see now how to buy a financial asset on the stock exchange. The process takes place in 5 steps:
- Log in to your MetaTrader 5 trading account.
- Right-click on the “Market Watch” tab.
- Go to “Symbols” and enter the name of the financial asset you want to buy in the search bar.
- Select the desired financial asset and click on “Show Symbols”.
- Right-click on the name of the financial asset in question and click on “New Order”, then on the blue button “Buy by Market”.
How do you start Investing in the stock market
Investing in the stock market for beginners ،Now let’s see the best investment companies on the stock exchange! This place is the stockbroker, the broker in which the trader deposits his money and places his orders.
To choose the right online broker, you must first choose a licensed broker. You should know that stock market brokerage is a highly regulated and licensed activity. Securities brokers comply with current legislation and laws and hold a valid license in each country or economic region in which they operate.
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For example, brokers wishing to operate in the European Union are subject to the regulations of ESMA (European Securities and Markets Authority) and in particular the regulations of the European organization MiFID 2 (Markets in Financial Instruments Directive), which is entered as a requirement for any stock broker operating in the European region.
As of January 2018. In short, the regulators aim to enhance the protection of the individual investor through measures such as protection against negative balances, the use of the right to complain about financial services, and the imposition of leverage limits limited from 1:20 to 1:30, which vary Depending on the volatility of the underlying financial asset.
In general, online brokers are required to hold a license issued by a financial regulatory authority in order to obtain a license to offer their services. Once they have the licenses they are called regulated brokers. For example, in order for any financial broker to practice the profession of financial broker in the Arab region, the stockbroker must be licensed and regulated by an Arab regulator, for example, the JSC (Jordan Securities Commission) in the Hashemite Kingdom of Jordan.
The most popular stock exchange investment platforms
Investing in the stock market for beginners ،Now that you are aware of choosing the best stock exchange investment companies, now let’s see how to choose your trading platform. This is the software that allows traders to place their orders in the stock market and also analyze the markets. There are many online trading platforms. To choose the right question, you have to ask yourself the right questions, such as:
- In which market(s) do you want to trade?
- What type of trading do you plan to do?
- What trading strategies do you plan to implement?
- Planning to trade on the go a lot?
Not all trading platforms offer the same trading conditions. Thus, the most widely used platform in the world – the MetaTrader platform – is available in several versions, in order to meet the different needs of each trader:
- MetaTrader 4, better known as MT4.
- MetaTrader 5, better known as MT5.
- MetaTrader Supreme Edition.
- Metatrader Web Trader.
MetaTrader 4 – MT4: Investing in the stock market for beginners
Investing in the stock market for beginners ،The most famous of them is MetaTrader 4. Praised by both traders and financial brokers, it has established itself as an outstanding platform for trading Forex and Contracts for Difference (CFDs).
More specifically, trading with MetaTrader 4 means first and foremost taking advantage of easy-to-read charts, increased chart space, and trading windows. These charts can be in the form of a curve, bars, or in the form of candles (Japanese candles).
MT4 is still a great platform for analysis, and it offers by default about thirty technical indicators, which can be simply downloaded. The MetaTrader platform offers 9 classic time frames: 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, day, week, and month.
The MT4 platform also supports all market and pending orders (buy order, sell order, buy stop order or sell stop order). The MetaTrader Supreme Edition plugin also allows the use of OCO (One-Cancels-the-0ther) and OCA (One-Cancels-All) commands.
Programmatically, MetaTrader 4 has managed to perform well compared to other trading platforms using its MetaQuotes editor: a programming software built into the platform. This tool allows traders to develop their own technical indicators or trading robots in MQL4 in order to be able to improve their strategies as much as possible.
Finally, in order to make the MT4 platform available to all traders, regardless of the operating system they use, MetaTrader 4 is available in several versions, intended for trading on Windows, trading on Mac, and trading on iOS., or trading on Android. To get the trading platform that corresponds to your correct version, simply download the version corresponding to the type of system you have.
Download MT4 for Windows, Mac, Android, and iOS
In addition, MetaTrader 4 also allows you to practice on a demo trading account. A necessary step for novice traders, who want to know the steps of investing in the stock market with virtual capital and thus without risk and without stress, the demo account is a very interesting tool for experienced traders as well, whether to discover a new instrument or to test a new trading strategy.
MetaTrader 5 – MT5: Investing in the stock market for beginners
Investing in the stock market for beginners ،MetaTrader 5 is the later version of MetaTrader 4. Here’s how they differ.
First of all, let’s emphasize that MetaTrader 5 is more intuitive and easier to learn than its predecessor. Therefore it is generally seen as targeting beginners who want to invest in the US stock exchange more than the MT4 platform, which was primarily intended for experienced traders.
In terms of the available markets, MetaTrader 5 is a multi-asset platform, which allows you to trade forex and CFDs, as well as stocks, ETFs, or futures. With MetaTrader 5, you can diversify your portfolio more easily, without having to change the trading platform, and it supports different types of orders, including market orders, pending orders, and stop/stop orders.
In terms of technical analysis, MetaTrader 5 goes further. The platform allows you to open up to 100 currency and stock charts, 21-time frames, and more than 80 technical indicators and analysis tools. MT5 traders can, as with MT4, develop their own trading tools using the MQL5 language.
we hope that you like this article about the ultimate guide 2022 to Investing in the stock market for beginners.
source: نجوم الخليج