Frequently Asked Questions (FAQ) About Stock Trading

What is this stock trading?

Stock trading is the process of buying and selling shares of companies on a stock exchange or OTC (Over-the-Counter) markets. Investors own a small portion of a company by purchasing its shares.

Who can trade stocks?

Stock trading is an activity that can be enjoyed by anyone aged 18 and over. However, certain financial and identity documents are usually required to open an exchange account and trade.

How to start?

1. Open an investment account: You can start by opening an account at a brokerage firm.
2. Do your research: Do your research to determine which stocks you want to buy.
3. Invest: Invest by buying stocks of your choice.
4. Monitor and Manage: Monitor your investments regularly and sell when necessary.

What is the difference between long-term and short-term trading?

Long-term trading is an investment strategy in which the investor plans to hold stocks for a long period of time (usually a year or more). Short-term trading, on the other hand, is a strategy where stocks are bought and sold over a shorter period of time, usually ranging from a day to a few weeks.

What should I pay attention to when choosing stocks?

• Financial Situation of the Company
• Market Conditions
• Industry Trends
• Company Management
• Dividend Yield

What are the risks?

1. Market Risk: Economic factors can have a negative impact on all stocks.
2. Liquidity Risk: There may not be enough buyers when you want to sell.
3. Company Risk: Poor performance of the company may negatively affect the share price.

What is dividend?

A dividend is a payment through which a company's profits are shared with its shareholders. If you plan to receive dividends, you can choose stocks with high dividend yields.

What is a stop-loss order?

A stop-loss order is an order that automatically sells a stock when it reaches a certain price. This is a strategy that investors use to avoid big losses.

Do I pay commission fees when buying shares?

Yes, most brokerage firms charge commission fees for stock trading. However, commission fees may vary depending on the brokerage firm and transaction type.