Stocks trading for beginners

If you are a beginner who wants to venture into stocks trading with IQ Option, the trading world can be a little bit confusing. Key questions you may be asking yourself are "What is a digital option?" and "How to trade this instrument?". Stocks trading differs significantly from other trading instruments and also requires a different approach. This article will explain key concepts of stocks trading.

What is a digital option?

A digital option is an option that gives traders an opportunity to set the strike price. The latter is a threshold that the price action should exceed or fall behind in order for the trader to make money. Typically, all you need to do is to set the strike price and forecast the direction of the trend, choosing “Call” for ascending and “Put” for descending movements. Stocks trading involves a limited number of variables, that in the end boil down to trend direction and strength.

A call option refers to placing a trade while forecasting that the price of an underlying asset will rise. On the other hand, a put option refers to placing a trade while predicting that the price of the asset will fall. You will also need to set the expiration time, that can either be 1 or 5 minutes. The option will automatically close once the time expires.

In case of stocks, the profitability of the deal can be as high as 900%.

How to start trading

To start trading with IQ Option, you will need to set up your trading account first.

Opening an account with IQ Option is easy and pretty straightforward. After filling the simple registration form on the broker’s website and submitting the required identity documents, you’ll be up and running.

Furthermore, the broker offers several secure and comfortable ways of depositing you can use to replenish your account, including credit cards, cryptocurrencies, WebMoney, Skrill and Neteller.

Better still, if you are not comfortable trading on your own, you can open a demo account, and sharpen your trading skills before engaging in real trading. The demo account will also assist you familiarize yourself with the platform and master your trading skills without risking any of your money.

Should you have any questions, be it on the nature of stocks trading or the platform itself, you can always contact the support department where you will instantly get comprehensive answers from qualified representatives.

How to trade successfully

To make money trading stocks you will need to make correct decisions. The latter include expiration time management, trend prediction and adequate strike price allocation. You will also need to make successful trade entries. One of the best ways of earning profits consistently from stocks trading is to develop a robust trading strategy, which will guide all your trading decisions.

Stocks for beginners

Luckily, IQ Option has an extensive range of educational materials you can use to master the art of successful trading, including videos, articles, webinars, and eBooks. To trade stocks with IQ Option, you will start by selecting an asset you intend to invest in, say EUR/GBP. Look at the price action of the currency pair during the previous periods and predict future price movements, choose the expiration time and the strike price. Your deal is now set and ready.

Still wondering about stocks? Open an account right away and receive first-hand experience while trading stocks with IQ Option.

General risk warning:
The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose