There are many online brokers that allow traders worldwide to invest in share CFDs (Contracts for Difference) and take advantage of price changes. While the process of trading shares and other financial instruments in the form of CFDs doesn’t change between brokers, the platform and trading tools are not always the same and various traders tend to employ very different trading strategies.

This article looks into this volatile, ever-changing market and offers fresh insight.

Choosing the right trading tools

Online trading is part of a technological revolution that requires constant progress, meaning that brokers are tripping over each other attempting to develop news tools to impress and entice traders. Yes, we know that it’s easy to fall for trendy and mostly useless features that websites use to look cool; but try to focus on the ones that might actually assist you in managing your trades and making decisions.

Market orders, trading signals and price charts are just a few examples of trading tools that you might end up using on a regular basis, as well as an economic calendar. There are also tools that focus on a specific trading strategy. For example, the Vestle share trading platform offers an Indicator Wizard that can be used by those conducting technical analysis. You need to make sure that the broker you choose has the right trading tools, and by ‘right’ we mean, of course, right for you, your needs and your trading style.

Create your share trading strategy

When you trade shares – or other CFDs, for that matter – you should have some sort of a strategy. In this case ‘strategy’ is just a fancy word for planning. It doesn’t matter what type of analysis you follow or what indicators you like – if any. It doesn’t matter if you focus on a single share or diversify your portfolio with various financial instruments from multiple markets. The important thing is that you know what you want to do and what instruments you intend to invest in and then manage your risks accordingly. What tactics should you use? That’s up to your own preferences, portfolio and risk appetite.

It’s all about the information

If you take a look at the Vestle share trading platform, you will see dozens of shares from various markets and economies, all of which can be exposed to different pressures. The price of share CFDs is driven by market powers and can be affected by many factors including quarterly reports, politics, sales, taxation and even management changes. It is important that you stay on top of potentially influential factors by following financial news and updates. You can also choose to receive trading signals or access daily market analysis to receive information about specific companies. For example, if you want to invest in the share price of UniCredit, you might like to get to know the company, its results and its performances as well as see what leading financial news outlets have reported about it lately.

Even if you are a highly experienced trader, it’s always important to keep updating and expanding your knowledge and to explore new possibilities.

The share market is volatile

The global share market is extremely volatile, which means both risks and opportunities to traders. By gathering information, planning ahead and creating a solid risk management strategy, you will be better prepared to face the turbulences in this ever-changing financial market. Want to learn more? Visit the Vestle share trading tab on our CFD platform and check out the selection of advanced trading tools and education resources.

The materials contained on this document have been created in cooperation with Vestle and should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Full disclaimer: https://www.vestle.com/legal/analysis-disclaimer.html