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How to Trade Equities, Basic Concepts

The Stock Market is a unique concept that allows sellers and buyers to trade constantly from any location throughout the World. Although much can be said for strategy and economic outlooks, there is no perfect formula for trading stocks.

After 10 years trading the stock markets worldwide, I can assure you that the learning never stops. The fundamentals of the market as well as the sentiment of traders is forever evolving, therefore, it is reckless to remain stagnant with regards to your education as a trader.

Each stock has its own unique fundamentals you must understand in order to evaluate and trade it. The following are great fundamentals to use which I consistently consider for each stock I’m researching.

  • Market Capitalization
  • Price To Earnings Ratio
  • Earnings Per Share
  • Dividend Yield
  • Historical Prices
  • Average Trade Volume
  • General News i.e. Company Press Releases

There will always be volatility when trading stocks, however a good trader must determine their risk tolerance upon entering a trade and adjust their target profits and stop losses accordingly. The VIX, Volatility Index, is a tool that allows one to judge the overall market sentiment with regards to risk. Upon interpretation of this data a trader can judge how their stock may react to any changes in the VIX.

Tradeview offer access to all US Equities for its clients and we provide a variety of high quality platforms to our traders. Trading equities goes hand in hand with trading options contracts, so we provide that too! Not to mention our ‘Trading Room’ educational section that is available to all! Take a look for yourselves.

Alejandro Sanchez
Business Development Manager

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