In this article we will talk about Forex, Stocks and Commodities. I’ll teach you the basics in how to invest in these financial instruments using fundamental and technical information to see if the markets are acting in relationship and if possible and if its possible to invest in 2 or 3 markets at once.
In theory it is something like this: Let’s say the price per barrel of Brent (Brent Oil) is $ 40.00 USDs per barrel and this is triggered at $ 55.00 a barrel the day the more likely it is that the actions of aviation companies such as Delta Southwest airlines or price reduction because if the oil price increases represents costs for airlines.
Before explaining that it is Forex, stocks and commodities would be honest on:
- You need a good investment capital to start any of these 3 markets. I recommend USDs 10,000.
Select 1 Market, for example Forex, trains and invests first in a course and books, learn and gain experience of 1-2 years. Become an expert in a certain market or investment. Start with Stocks or Commodities, Forex, etc. This decision depends on you, the important thing is just to pick one market and specialize first in that. It is good to be jumping 1 market to another without knowing what is being done.
Have mentors and coaching Trading. 60-70% of trading is emotional and psychological, you’ll need help.
Forex is the market where currencies are traded. It is the more liquid largest financial market in the world, and trades 24 hours a day, five days a week and a half. about 3-5 trillion dollars every day are handled.
How does it work ? In the Forex market involved from a tourist who makes a purchase of currency exchange to travel, to large banks that perform transactions. Even the stock exchanges to exchange shares for domestic currency may affect the Forex market.
How to invest in stocks?
In simple words simply, a stock is a share of a company, say a small piece of a certain company. The shares represent a claim on assets and earnings of the company. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say, equity, shares or securities, it all means the same thing.
Being an owner
Holding shares in a company means that you are one of the many owners (shareholders) of a company and, as such, have a claim (albeit usually very small) to everything the company owns. Yes, this means that, technically, is the owner of a small part of each piece of furniture, each brand, and all contracts for the company. As an owner, you are entitled to your share of the profits of the company, as well as the rights attached to the shares voting.
An action is represented by a stock certificate. It is a fancy piece of paper that is proof of ownership. In the computer age today, actually you reach not see this document because your broker or broker keeps these records electronically.
A shareholder of a public company does not mean you have to say in running the day to day business. Instead, one vote per share to elect the board of directors at the annual meeting is the degree to which you have something to say in the company. For example, Amazon being a shareholder does not mean you can call Jeff Bezos and tell how you think the company should be run. In the same line of thought, being a shareholder of Anheuser Busch does not mean you can walk into the factory and grab a free case of Bud Light!
Now we will not get far in this terminology, we will see more than anything when is a good time to start investing and investing.
Experts say must be between 10.000 to 30.000 USDs capital to invest in stocks. It is not advisable to do so in small amounts. If you want to practice or start learning you recommend doing with demo accounts.
“Buy low and sell high.” We’ve all heard this but you have to use indicators and financial instruments to get a better idea of the picture.
Indicators 1 Day, 2 Hours, 1 Hour. 1 Day is to see long-term, 2 hours to see as the share price behaved in the last day and we will use the graph of 1 hour to get the picture or image.
Here we see an example of Delta Airlines $ DAL:
As you can appreciate the company Delta Airlines is not in the best of times. You think this is coincidence? Let’s see what happened with oil and other commodities.
What are commodities and how to invest in them?
A commodity or commodities are often products or merchandise, which is a basic good used in commerce. Always in constant movement in the markets and it is interchangeable with other products of the same type. The products are used most often as inputs in the production of other goods or services.
The quality of a given product may be slightly different, but it is essentially uniform across producers. When traded on an exchange, commodities must also meet specified minimum standards, also known as a lower grade.
Any good exchanged during trade, including goods traded on a commodity exchange.
Let’s see and use the oil price as an example for this post:
You think it’s coincidence that the price has fallen Delta Airlines nomas because if? You see the relationship between the price of oil and the price action of Delta Airlines? Similar situations happen very large companies every day and often the great opportunities that investors seek.
How commodities work?
The basic idea is that there is little difference between a product and a producer from the same raw material to another producer – a barrel of oil is basically the same product, regardless of the manufacturer. Compare this with, for example, electronics, where the quality and characteristics of a particular product will be completely different depending on the producer.
Examples of traditional products include grains, gold, meat, oil and natural gas. More recently, the definition has been expanded to include financial products such as foreign currencies and indices. Technological advances have also led to new types of products traded on the market: for example, cell phone minutes and bandwidth.
The big difference between driving or invest in Forex or Actions, is that buying commodities are investing in a contract. The buying and selling of goods is carried out usually through futures contracts on exchanges that standardize the quantity and the minimum quality of the product being negotiated. For example, the Chicago Board states that a wheat contract is 5,000 bushels and also establishes what grades of wheat (for example, No. 2 Spring North) can be used to satisfy the contract.