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Stock Trading Guide - Learn basic stock trading

Welcome to the Stock Trading Guide mini section, helping you learn the basic stock trading principles.



Stock trading in the UK has become a great way for small investors to not only save for their retirement but also make an income and some to make a fortune. Stock trading used to be the domain of big companies and individuals with high net worth, but this has started changing with the introduction of cheaper broker fees and more knowledge of the stock market.

We at stocktrader.org.uk are committed to providing the best information on the UK stock market to make your stock trading experience better. Some of the topics we shall cover include

1. Stock Trading for the Beginner

Stock trading seems like an exotic way to save money or earn a living. However, stock trading is a simple way to invest in the ownership of companies that an investor considers to be profitable. We discuss what stocks are and how the investor or stock trader can earn a profit by trading stocks in the UK.

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2. What is the Stock Market?

If you are going to invest in the stock market in the UK, it means that you will need to buy and sell stocks in companies that you like. Like any other market, the stock market is a central place where stocks and shares in companies are exchanged on a daily basis. We discuss what the history of the stock market and how it works for the investor.

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3. Types of Stock Traders

The stock market is open to any type of personality. There are different types of stock traders and the common purpose for all of them is to make a profit. We discuss the different types of stock traders in the UK and how they make a profit.

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4. Stock Prices and Quotes- How to use them

When you trade in the UK stock market, you have to be able to know their prices. The stock market over time has come up with its own method of showing prices and price changes. A good stock trader should understand how to interpret these stock price quotes.

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5. Stock Index - What are they?

Investors need to have a way to figure out how stocks are doing in comparison with competitors or other companies in their sectors. Stock indexes were created to enable investors easily compare the performance of companies in a sector or compare one sector to another.

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6. Stock Brokers

If you plan to buy and sell stocks in the London Stock Exchange, you will need to use a broker. An investor has a choice in the types of  stock broker he needs. We discuss the types of stock brokers in the UK  and how to choose them.

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7. Stocks and Mutual Funds

The more stocks an individual trader trades in the higher the profit he is likely to make. However, the possibility of more profits in the UK stock market also includes the added risk the individual stock trader will take. We discuss stock trading in relation to Mutual funds and why an investor should consider trading in Mutual funds.

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8. Difference Between Stocks and Bonds

Stock trading is not the only opportunity available to individual stock traders. We discuss the difference between stocks and bonds in the UK and when an individual should consider trading in bonds as well as stocks.

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9. What are Penny Stocks ?

Penny stocks or Penny shares are becoming more popular with individual stock traders. There are risks and rewards in trading in penny shares in the UK. Some of these risks can be avoided even if the rewards in trading in penny stocks are very high.

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10. What are Stock Options?

Most small stock investors think of stock options in terms of their employment package. However, stock options in the UK  are exotic methods of leveraging investor money in order to make a profit. Both the seller and buyer of stocks can make a profit when trading stock options.

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11. Fundamental Analysis

Stock traders need to know which stocks or shares are good for them to invest in. Fundamental analysis is one of the ways which are used by stock traders in the UK to decide on the stocks that are likely to be profitable.

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12. Fundamental Analysis Tools

What are the fundamental analysis tools that stock traders in the UK use? We discuss how fundamental analysis tools like balance sheets, income statements and others are used and interpreted in order to pick the best stock choices.

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13. Technical Analysis

Other than fundamental analysis, some stock traders use technical analysis to make decisions on the best stocks to trade. We discuss the thinking behind technical analysis and how it is used in the UK stock market.

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14. Technical Analysis Indicators and Patterns

Technical Analysis seems difficult to the new stock investor in the UK. At stocktrader.org.uk we try to make the learning of how to interpret and use various technical analysis tools and patterns to make a profit in the stock market.

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15. Bear and Bull Market

What is the bear and bull market ? It is possible for the stock trader in the UK  to profit from both a bear and bull market as long as they have identified the type of market they are in.

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16. Equities Trading and the Internet

What is the relationship between equities trading and the internet? A lot of new stock investors in the UK are getting to know about stock trading opportunities as they suft the web. It has not always been the case and we discuss how the internet has help changed the trading equities and stocks.

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17. How to Research Stocks

Deciding to invest in stocks and shares in our investment portfolio is the easy part. The biggest challenge is how to choose and find the best stocks to invest in. There are various methods including visiting your full service stock broker and even monthly or weekly newsletters. We discuss some of the easier ways to get information about a stock.

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18. Stock Splits

What is a stock split and how does it affect your stock investment. UK companies have a number of tools to attract as well as retain shareholders in their companies. the more shareholders a company can attract, the more likely it will fetch a higher price. We see one of the most common tools used by companies called stock splits.

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19. Stock Trading Signals

After trying to pick good stocks and failing, some stock investors in the UK tend to look for an alternative especially if they are not confident of their knowledge about the stock market. Stock trading signals companies were created for this type of investor and we discuss their pros and cons.

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20. Trading Strategies

It is a rare investor who flips a coin to choose a good stock. Most stock investors in the UK use various stock trading strategies to find the best stocks to invest in. Discipline on the part of the stock trader is essential for success in using some of the strategies we discuss.

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