Professional investors must have a very good grasp of stock investing basics for profitable investment portfolios. Understanding the basic concepts, not only in stock markets but also in all other investment models, will make them more aware of market dynamics.
If you want to experience a sustainable investment process in stock markets, you must know the basic concepts of the stock market very well. You should take a look at guidance and educational materials such as "stock market for beginners" on this subject.
In order to become a professional stock market investor, you are expected to improve your financial literacy level about the stock market from the very beginning.
Fortunately, thanks to digital tools today, answers to questions such as how to buy stocks, what is a stock, how stocks work, what are the dynamics of stock markets are offered free of charge through many e-books and video content on Youtube.
Since the stock market is a long-term investment model, first of all, skills and competencies related to stock investing basics should be acquired patiently. You can get to know the dynamics of stock markets by opening a free demo account through BlueSuisse.
What is Stock Investing?
To simply define the concept of stocks, they are documents listed by companies that have gone public in the markets. Investors who purchase these documents become partners in the company's ownership at certain rates.
They earn their share of the financial growth in the company. Thanks to stocks, investors can get a share of the company's capital in the long term. Professional investors should not only be interested in the best of stocks.
At the same time, they should have analysis tools that will give them an idea about the effects of these investment instruments on the balance sheet. Thanks to many analysis methods and tools, investors can manage their relationship with stocks more professionally through digital channels.
Types of Stocks: Common vs. Preferred
It is known that there are basically two different types of stocks. These are called Common vs. Preferred stocks. When common stocks are purchased, investors or shareholders gain the right to vote in the company's decision-making mechanisms.
For example, if a technology company offers the stocks it offers in the IPO process as common stocks, shareholders gain the right to vote that will directly affect the technology company's projection for the next year.
In the other common stock type, preferred stocks, a fixed dividend system is used. In the fixed dividend system, investors receive periodic returns and do not have the right to vote in the company's internal decision-making mechanisms.
One of the factors that stock market investors who want to diversify their portfolios with various asset classes should pay attention to is the type of stocks they are interested in. You can enjoy carrying the markets with you at all times by visiting BlueSuisse.com now.
How to Buy and Sell Stocks?
Generally, beginner stock market investors often ask the question "How to buy and sell stocks?" Although it may seem like a complicated process at first, a few simple, applicable steps are actually enough to answer this question.
Of course, just having a stock market account is not enough to start buying and selling stocks directly. Many professional stock market investors today buy stocks after using strategies such as transaction timing, liquidity analysis, and discovering order types.
Because the timing of buying and selling stocks in the stock market is of critical importance. However, to answer roughly, you must first have a stock market account to buy stocks.
Through this account, you can buy any stock you want during the days and hours when the stock market is open. Today, stocks buying and selling processes are mostly managed with mobile banking applications.
In recent years, digital banking platforms that provide fast and digital solutions have been established in many areas where traditional banking ecosystems are inadequate. It is possible to trade reliably in the stock markets through these platforms.
You can activate your investor identity with investment tools such as stocks in global markets by getting to know BlueSuisse now.
What Affects Stock Investing Prices?
Stock prices can be directly or indirectly affected by many factors. The most critical stock price factors can be listed as follows:
- Interest rates announced by central banks
- Inflation
- News about companies in the media
- Balance sheet results
- Technical indicators
- Changes in market sentiment
- Trends on social media
Apart from these, many factors can directly affect stock prices. This varies depending on the sector of the company in which the stock is purchased and the time period in which it was purchased.
It would be a mistake to trade in the stock market by considering only these factors. Technical analysis tools and fundamental analysis charts should be evaluated together and emotional reactions should be avoided.
What Are the Risks of Stock Investing?
Although it is a profitable investment vehicle aimed at long-term returns, many "risks of investing in stocks" should also be taken into account. One of the most common is market risk.
Markets do not always move as expected, and unexpected market fluctuations are a type of risk that investors of all levels should not ignore. Another popular risk is those related to the company.
Company risk always continues. No matter how successful a company is on a global scale, it always carries risk due to the human factor. History is full of news of world giant companies worth millions of dollars going bankrupt as an example for stock investing risks.
Therefore, the risk factor is valid for every company. On the other hand, common risks such as unexpected political and policy crises and wars should not be ignored. You can improve your investment decisions with the professional analysis tools offered by BlueSuisse via its mobile application and website.
How to Build a Diversified Portfolio with Stock Investing?
The best answer to the question of how to build a portfolio with stocks is to create a diversified and balanced portfolio of different types of stocks.
As in every investment model, investors who want to earn returns in the stock markets through buying and selling stocks should develop their portfolios with diversification strategies. Portfolios should consist of stocks offered to the public by companies from different sectors.
A long-term investment perspective should be developed by considering the risk-return balance. When the portfolios of many successful stock investors are examined today, "Diversified stock portfolio" practices are seen. Limited portfolios such as a single company in a single sector can be risky.
For this reason, investors should determine their financial goals within the scope of "long-term vs short-term stock investing" and distribute their assets to different stock types. While this is suitable for professionals, it can also be among the "beginner stock investing tips".
Open your live account at BlueSuisse to see the most invested stocks in the market and create your own investing strategies.