Trade Stocks on Olymp Trade

Aspiring to invest in leading companies like Apple, Google, and Tesla? You’re in luck! Olymp Trade provides its clients with a golden opportunity to trade these high-profile stocks, alongside many others. Stock trading is a potent avenue for investors to build robust portfolios, and Olymp Trade offers a platform to participate in the growth of prominent companies like IBM, McDonald’s, and even Google.

Despite the lucrative opportunities, the world of stock trading might seem intimidating to newcomers. Let’s break down the basics of stock trading and see how Olymp Trade helps its clients navigate this rewarding financial journey.

Trade Stocks with Olymp Trade

Understanding Stocks and Their Trading

Stocks represent a slice of ownership in a company. Businesses issue stocks for various reasons, including capital raising for projects, expansion, or cashing in on their success. Examples of companies issuing stocks include Saudi Aramco and Uber, both generating considerable public interest through their Initial Public Offering (IPO).

As a stockholder, you share in the company’s profits relative to your ownership stake. For example, if a company with 100 shares in circulation pays out $100 to its shareholders, and you own two shares, you receive $2, representing your 2% ownership. However, it’s essential to note that the total number of shares issued by companies can be in the billions, translating to smaller payouts unless an investor holds a substantial number of shares.

Stock prices depend on supply and demand. High demand for a company’s stock increases its price, while high supply (due to excessive issuance or mass selling) decreases it. Thus, companies that continually lose money can see their stock value nosedive.

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Trading Stocks for Profit on Olymp Trade

While owning a part of a company or receiving dividends can be exciting, most investors focus on opening trading positions based on future stock price movements. Olymp Trade offers two distinct ways for clients to profit from stock trades, providing 13 blue-chip stocks for Fixed Time Trading and five on the Forex side, including prestigious companies like Facebook, BMW, Microsoft, and Starbucks.

Fixed Time Trading involves predicting whether a stock will go up or down within a certain timeframe. If the prediction aligns with the actual movement, the investor could earn up to 92% of their initial investment in profit.

Forex trading, on the other hand, doesn’t confine investors to a specific timeframe. Profitability depends on how much the price changes, and traders can close their positions whenever they deem suitable.

Whether using Fixed Time Trading or Forex, traders can leverage news and economic data to make informed decisions, considering that popular companies frequently feature in the news. Employing the trading strategies you develop on Olymp Trade to stocks can significantly bolster your trading account.

Trade Stocks with Olymp Trade

Easy Stock Trading on Olymp Trade

Olymp Trade has expanded the number of companies available on its platform, including new additions like Amazon, Alibaba, Exxon Mobil, and more. With more than 30 different stocks available for trading, both long and short term investors have a wide range of options. The quality of the company when investing is crucial, as well-established companies with solid reputations typically see their value rise consistently over time.

However, trading can also bring significant profits from short-term jumps and declines that are news-driven or reflect the company’s profitability. For those new to trading stocks, understanding these concepts might seem challenging. But don’t worry – here’s a guide to help you get started on trading shares of some of the most high-profile assets worldwide.

Focus on two parameters to determine which stocks to trade and when to trade them: price trends and company profits.

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Trading Price Trends

A basic investing principle suggests trading with the trend as stock prices tend to continue in their current direction. A straightforward approach to this is using moving averages, combining the simple moving average (SMA) and the exponential moving average (EMA). Olymp Trade’s platform provides all the necessary tools to set up your trend strategy.

The idea is to identify the trend and forecast its changes to maximize your profits on a trend. Whenever the short-term trend intersects the long-term trend in the opposite direction, it indicates a potential trend reversal, enabling you to open an Up or Down position accordingly.

Trade Stocks with Olymp Trade

Sharing in Company Profits

The value of a company’s stock is primarily influenced by its profitability. Generally, if a company earns steady profits distributed to shareholders, the company’s stock price will continue to rise. Therefore, it is recommended to trade stocks of profitable companies as it involves less risk and assures upside potential. Understanding the company’s actual value is critical, which you can determine from publicly available data.

Earnings Per Share (EPS), Price to Earnings Ratio (P/E Ratio), Debt-Equity Ratio (D/E), and Return on Equity (ROE) are some key metrics to understand a company’s financial health.

Understanding these metrics can help you identify opportunities for both short-term and long-term investments. As an example, if a company’s EPS is lower than forecasted, the stock often drops for a short while, indicating a chance for traders to open a Down position and then an Up position to capitalize on the recovery, considering that blue-chip companies usually rebound from such drops.

Finalizing trades based on the above factors can help you profit from the exciting world of stock trading. The Olymp Trade platform offers a plethora of tools to make trading easier and rewarding. Whether you’re a beginner looking to make a foray into the market or an experienced trader seeking to expand your portfolio, Olymp Trade equips you with the resources needed to maximize your trading potential.