Introduction
A broker stock is a company or a professional that uses the money of the clients to generate incomes for the respective clients, but also for the company he works for. As there are different types of investments with the broker stock, you will have to decide about a plan offered by the broker stock agent. It depends on your preference for risk, but also on the current situation on the international economic market.
Step 1
There are two major types of investors using broker stock. The first category is composed of the investors that are looking for safe, long-term profits. Those investors will instruct the broker stock to invest in solid companies with great potential on the long term.
Step 2
Those investments are made on a long term by broker stock agents, so the responsibilities of the broker are only to create the investment account and to expect the results.
Step 3
The second type of investors is those that are looking for short-term profits. It is possible to obtain great results with the help of a good broker stock, but the risks associated with this type of investments are also high.
Step 4
A good broker of this kind must keep an eye on rumors all the time, and to use technical analysis to anticipate the evolution of stocks on short term.
Step 5
The technical broker stock analyzes tries to anticipate trends and patterns influencing the market. Many people are tempted to use those methods, attracted by the high earning possibilities, but usually, only a few are able to succeed.
Step 6
The world of technical analyze is huge now. There are hundreds of patterns and indices that are considered successful by the investors.
Step 7
This kind of analyze is a method to evaluate the active elements of a company, using statistic analyze of the generated series.
Step 8
This method used by the broker stock will not be able to evaluate the evolution of prices on long terms, but it is perfect for short-term forecasts.
Step 9
This type of analyze has become popular during the latest years, as a large number of investors think that the history of a stock gives important clues about the evolution of the respective stock.
Step 10
Even people that use fundamental analyze for long term forecasts will use technical analyze now and then. However, a broker stock that uses technical analyze must have complete notions of statistics and mathematics, but also some basic accounting knowledge.
Tips
People that use short-term previsions in the broker stock activity think that the movements of prices on the charts are predictable, and that those trends will remain the same until “something” intervenes to change the prices.
Sources and Citations
Some of those broker stock agents can be precise in the majority of cases, and there are some examples of successful investors that base all their actions on technical graphs and charts, without the slightest idea about the history of the company and about its long-term plans.
However, it is known that the successful investor must use both notions of technical and fundamental analyses to establish the evolution of prices completely, and only the most experienced brokers are able to combine those techniques effectively.
