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When is the best time to buy Stocks online?

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As we well know in ForexSQ forex news blog, in the world of financial markets, there are plenty of instruments to invest in. One of them is the stock market, where equities, stocks or shares are traded. A share is the ownership of a certain portion of a corporation. Once you own shares you are entitled to gain money from two sources: capital and dividends. Capital gains occur when the price of the stock rises. Dividends is a payment from the corporation to the shareholders. You can lose money if the price of a stock falls, while it is impossible to have “negative” dividends.

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If you are an investor looking for “dividends” in the long run, then you should check which companies usually distribute profits to its shareholders. Not all companies have the same dividend policies. The questions of when to buy become less relevant if the investor only looks for a divided and to hold the stock for a long-term.

On the other side, the “when” becomes very important if the investor is looking for the stock’s price to rise and therefore achieve capital gains. Investors could look for capital gains in the short, medium and long-term; one could even become a daily trader, buying and selling stocks several times during a single day.

The question of when to buy becomes extremely important for a day trader and perhaps even more important when to close the position. The combo of options to invest also includes the possibility of “shorting” stocks. That is, to earn money when the price of a stock drops.

If the when to buy matters, the when to sell matters most because it is when one closes a position the moment when gains are materialized. You can own stocks that have risen 5%, but as long as you don’t sell them, you have not materialized any gains, you’re still on the market; yes, up 5% but still exposed to a change in the trend that could wipe all your gains out and transform that 5% gain into a 5% loss. Before deciding to buy a stock you need to have a trustable broker, one that offers you competitive prices and that suits your risk profile. After that, the best moment to buy a stock is when you have defined when, or under what circumstances, you will sell or close that position. You can learn free how to buy stocks online and open Free stock trading account at forex trading news blog http://www.forexsq.com/.

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This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

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