These are the reasons why today I write the article: How to trade, buy and sell US stocks in Olymp Trade?.
2021 is a year of pumping money. 1900 billion USD has been approved by the bicameral United States. 3000 billion USD is under consideration by President Joe Biden.
Or we can say: A lot of money will be printed out. So what will happen? Statistics show that: 1/3 of this amount will be poured into the US stock market. When the money comes in, the price will increase. And this is when you invest to make a profit by trading stocks in Olymp Trade.
Observe the general market
If you invest in US stocks, the S&P 500 and Dow Jones are the 2 charts you must keep an eye on. These are like the general market indices:
The overall market goes up => the majority of stocks will increase. In contrast, when the general market falls, the majority of stocks will fall.
For example, these days are bullish days for Dow Jones. The daily chart is in an uptrend. And the story now is: Choosing good stocks to buy.
Focus on trading good stocks in Olymp Trade
How do we know if this stock is good or not?
The answer is: The price of that stock should rise stronger than the general market.
For example, the overall market is in an uptrend (Dow Jones and S&P 500 both increase). Good stocks such as Caterpillar, ExxonMobil, or Disney will have better growth.
Your job is: Focusing on these stocks.
Use a large time frame chart
Unlike Forex (currency market) or Crypto (Coin market), stock price fluctuations are often very small and not as strong as the two markets above. Therefore, you need to follow the daily chart for a better overview.
Small time frames such as 4H, 1H should only be used to find entry points
Limit short-term trades.
If you buy a good stock, it takes time to increase in price. There is no need to hurry. Just hold it and the profit will come slowly.
Some notes when trading stocks in Olymp Trade
- Trading time. If you want to buy and sell US stocks, you can only do that during the US session.
- Trading stocks is different from trading currencies. The leverage will be low to ensure the safety of your account.
6. You only need some good stocks in your portfolio. Don’t spend your money on bad stocks.