Stock trading is a strategy used by many traders in the stock market. This is a form of short-term trading that requires a lot of knowledge and decisive analytical skills from investors. Besides, the selection of stock codes plays a leading role. The article will share the experience of evaluating and choosing surfing stocks for traders new to the stock market.
What is Stock Surfing?
Stock surfing – an activity in which investors will buy stocks that are assessed as having potential for development, and at the same time rely on small fluctuations of the market in the short term to earn profits. Which stocks to choose is an important criterion when you want to surf or trading stock CFDs.
Advantages
The biggest advantage for traders choosing the method of surfing stocks is the flexible investment capital rotation; At the same time, it can generate good profits in each short-term trading session when choosing the right potential stocks in combination with positive market fluctuations.
Defect
The most difficult problem for traders is choosing a reasonable entry time (predicting wave bottom, wave peak) and being decisive in how to choose stocks. To be able to meet the requirements on the hill, traders must have technical assessment and analysis skills, otherwise traders will face risks when the market is contrary to their wishes. In addition, due to having to execute many orders in a short time, traders will also have to pay a high fee.
Criteria for choosing surfing stocks for new traders
Surfing stocks is a strategy that many investors choose with the desire to earn profits in the short term. Criteria to evaluate a suitable stock code for new traders:
Stocks with high proportions.
- The P/E ratio is in the range of 13.1x to 15.1x.
- TTM index is above 5.4x.
- Low price stocks.
- Growth stocks (after tax) are stable.
These are just 5 basic criteria to choose good surfing stocks. To be able to optimize profitability, you need to observe market trends and fluctuations to make appropriate predictions for short-term investment strategies.
Which floor should I surf stocks on?
After you have decided on the stock code, you need to choose a reputable broker to start trading. Top rated brokers in 2022 that you can refer to: XTB, XM, Exness,,…. Here is some important information about these exchanges
XTB
At XTB, investors are supported over 1800 stock codes, the floor is managed by KNF, IFSC, CySEC, FCA. XTB offers a proprietary trading platform – xStation with many modern tools in addition. Traders do not need to pay commissions when buying/selling shares CFDs are a suitable factor for new traders who want to trade stocks.
XM
XM supports up to 100 prominent stocks across all industries creating diversity for traders to choose from. The exchange's management unit includes CySEC, FSC, stock trading costs from $0.04 to 0.10%, commissions from $1 to $9 (depending on the country). The platform supports trading with the platform MT4 and MT5 is currently optimal for stock trading.
Exness
Exness has a wide range of stocks with more than 90 stocks supported for trading at this broker. At the same time, the exchange allows investors to use leading platforms (Exness Terminal, MT4, MT5). Exness is regulated by CBCS, FSC, FSCA, FSA, CySEC. Especially, the exchange offers free overnight refunds for stock trading and affordable transaction fees - a convenient and suitable factor for new traders to surf stocks.
The article has shared some experiences in choosing the right stocks to surf when stock investment. In addition, new traders should learn the knowledge to optimize for better profits. Besides, choosing a reputable and suitable broker is also extremely important to minimize risks.
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