Do you live in South Africa? Then please go to HFM ZA (South Africa) main introduction page.
Everyone should have access to investing.
With HFM, stock trading is made easier thanks to the “fractional shares” option.
A fractional share is a fraction of a whole share of a company.
Investing in fractional stocks makes it easier to buy expensive stocks that you might not otherwise be able to afford.
To start investing in Stocks with HFM, you just need to follow the simple steps to register an account for free.
Go to HFM’s Official Website, invest in stocks of leading companies, build your investment portfolio without commission and receive dividends in your account today.
Invest in Physical Stocks on HFM
Find out real-time prices for stocks of interest from the world’s largest stock exchanges and invest in leading international companies, own part of the shares of companies and receive dividend payments directly to your account.
The price of each share is determined by such fundamental indicators of the company as income, earnings and prospects for future growth.
As well as broader economic factors such as GDP growth, interest rate policy and general market sentiment.
Depending on the size of your investment capital, you can also purchase fractional shares.4
Buying fractional shares allows you to purchase a portion of the shares based on the amount you have to invest.
In order to create a balanced and diversified portfolio, you need to own shares of different companies.
It will also protect you from adverse market conditions and maximize the potential return on your investment.
At HF Markets, you have the opportunity to invest in over 2,000 stocks with zero commissions thanks to the powerful Metatrader 5 platform.
Invest in Stock CFDs on HFM
Diversify your portfolio with derivatives on the stocks of the most profitable companies, with low margin requirements and costs.
Equity derivatives trading offers traders the opportunity to trade shares of companies and potentially profit from price fluctuations without owning the underlying asset.
Derivatives have provided traders with the opportunity to access the market in a more economical and faster way.
Each share has a price, usually determined by the supply and demand of the company’s shares in the market based on its current or projected future performance.
Their price can be influenced by a number of factors such as company news, earnings and broader market events.
Traders can go long or short and take advantage of both rising and falling stock prices.
Earn money with a minimal chance of losing a deposit
Traders are divided into aggressive and conservative.
If the former choose assets with a dynamic change in value, the latter tend to work with the least risky instruments.
So, for the majority, trading in shares is presented as an opportunity to earn money with a minimal chance of losing a deposit.
Securities of this type are usually owned by large enterprises, which rarely go bankrupt and more often make a profit.
How to make money trading stocks?
The choice in favor of stock trading on the stock exchange is explained by several reasons.
In part, they are psychological, since they provide the investor with tangible guarantees of return on investment.
But there are also objective factors.
For example, all securities have liquidity due to material goods: real estate of the enterprise, its raw materials and commodity stocks.
The following is also attractive:
- The stock price does not directly depend on the value of currencies or commodity reserves.
- A crisis in a country or in the world market may not affect individual companies (unlike national currencies).
- Investments in the assets of large companies are easier to predict than changes in the market of cryptocurrencies and precious metals.
You can learn how to trade stocks from scratch using a demo account of HFM.
The approach allows you to study the main trends, choose an effective method of earning.
And this is without the risk of losing real money, all loss or profit remains virtual.
Open HFM Demo trading accounts
Novice traders are more likely to seek conservative ways to make a profit.
Creating and using a ready-made strategy are two different things. Therefore, they say that it is easy to start trading shares.
But this does not mean that you can get down to business without training.
In order to easily increase deposit funds, it is recommended to test on demo accounts first.
Moreover, virtual exchange trading in shares should be carried out under the same conditions that the trader plans to create for a real account.
The choice of assets, volumes of purchase/sale – all the activities of the investor are emulated based on the subsequent transition to real money.
This approach dramatically reduces the risk of errors.
To open a demo account with HFM, go to the page below.
How to reduce the risks of trading stocks?
The stock market carries the same risks as Forex or a crypto exchange.
In addition to the wrong actions of the trader himself, trading in the stock market can bring losses due to external factors such as refusal to pay profit.
There are a number of rules, the observance of which reduces the risk of encountering such phenomena.
- It makes no sense to conduct transactions without analyzing the market – it is recommended to make it a rule to read forecasts, try to figure it out yourself.
- Before creating a large deposit, you should make sure that the broker is reliable like HFM (HF Markets): according to reviews or from your own experience, working with a small amount.
- Even at the stage of working with a demo account, you need to practice using indicators, scripts, and automatic advisors.
Sometimes traders try to study the quote tables and develop the skills to calculate the return and risk on certain trades.
If you listen to the above tips, trading in shares or assets of foreign companies can become a reliable source of income.
It remains only to collect a profitable investment portfolio and regularly optimize it.
Drawing up an investment portfolio
The key criterion in successful trading is the ability to diversify risks.
Traders distribute investments between different assets. Moreover, they try to select such that there is no direct correlation between them.
But if this condition is not met, then reciprocal transactions are made, allowing you to earn on any movement (even up, even down).
When it comes to stock trading lessons for beginners, the focus is on building a whole portfolio.
Recommended structure: 70-80% of the capital is allocated to stocks with low volatility, and the remaining 20-30% is invested in high-risk assets. The list of companies whose securities will be purchased depends on the size of the deposit and the value of the shares.
Ideally, the overall portfolio index should follow rising trends across all assets.
In the event of a reduction in the price of any shares, the trader replaces them with others.
If the total profit allows, the composition can be left unchanged, compensating for the losses of some with the profit of others.
On the first day of each month, it is desirable to have an estimated rate of return.
Equity Portfolio Management Techniques
When trading shares of a world-famous company, it is often known in advance at what events its liquidity increases and when it can decrease.
It is more difficult to predict with small enterprises. To simplify the management of portfolio investments, rebalancing is used (a mathematical way of regulating profitability).
The technique involves the implementation of the rules:
- At the time of creating the investment portfolio, each type of shares is allocated a share of the package (in percent).
- The audit is carried out strictly according to the schedule (every month, quarter, half a year).
- When calculating, the amount of investments in each asset, you must take into account current quotes (in the investment currency).
- Any deviations from the original value require correction.
Shares that have fallen in price are bought up to the required amount, and shares that have risen in price are sold.
In quantitative form, the balance of assets is constantly changing, calculations are made only in the deposit currency.
With this approach, trading in stocks on stock exchanges can become a tool for earning money with a constant level of profit.
Upon reaching the planned profit, the portfolio can be realized and re-formed (partially or completely).
Use EAs for automated trading
The maximum profit can be obtained if you use the best stocks in terms of price and volatility in trading.
With the manual method of opening transactions, the trader has to constantly monitor the market.
The more active changes in quotes, the more carefully you need to follow them. But there is a way out. If there is a proven trading strategy, it is automated.
The procedure looks like this:
- According to a manually verified algorithm, a robot program is created;
- It connects to charts in the terminal;
- The settings chosen by the trader are entered.
It remains to observe the work of the expert adviser and, if necessary, correct it.
The intervention of a trader may be needed if he decides to close any transactions ahead of schedule, to exit the market completely to compile a new portfolio.
Thanks to this, stock trading for “dummies” becomes possible. After all, beginners are often let down by emotions, irrational decisions.
The robot does not know such concepts, it acts strictly within the framework of a given algorithm.
As the trader gains experience, you can “put on the machine” trading operations partially.
For example, you can choose traded assets, order volumes, and other parameters on your own, and shift routine operations to software.
For example, by closing deals after reaching a given level of profitability.