If you are reading this, I’m assuming that you found your way here because of an interest in starting trading stocks from home in Norway.
Before getting into the nitty-gritty details of the who/what/when/why etc., it can be helpful to get a high-level overview of what stock trading is.
In essence, stock trading is buying one company’s stock for cash with the expectation that its value will rise.
When it does, you sell back at a profit. The companies whose stocks are bought and sold this way are called “companies” or “corporations”.
These terms refer to any business entity where people put money to earn money back, whether it is a small business or a country.
The stock market refers to where people trade stocks of companies among each other.
The total value of all the traded stocks is measured twice every day by “Bloomberg”, which stands for “Business News and Data”.
It’s pretty useful as well as entertaining if you like keeping tabs on your own company, primarily because if they’re getting richer, then their stock price will do so as well (along with yours).
When people refer to the stock market, they mean this total value.
Out of the millions of stocks traded every day on the market, there are only a few thousand companies whose stocks are bought and sold most frequently (i.e., used most often) throughout the year.
Nevertheless, these companies’ stocks are worth more than everything else in Norway’s economy put together! That makes them very important for your potential future earnings.
When a stock price rises in value, it is said to go up. When it falls in weight, it goes down.
This number is referred to as “the market” and is one number you will hear about on TV every night without fail. It even has its abbreviation: YTD (year-to-date).
Stock Trading in Norway
There are three basic requirements for you to start trading stocks from home in Norway:
You need money
Have a minimum of NOK 50 – 100,000 – €6,500 – $7,000. It is no secret that the money that you use must be your own and not borrowed or supported by someone else.
You don’t need it all to make a deposit; you can also buy fractional shares; this means purchasing less than one share.
But if you want to take part in the stock market to make money as an investor, then it is advisable to use your capital instead of borrowed capital (loans).
There is nothing wrong with borrowing as long as your investments support your personal needs and goals.
Do it from home
Get a job from home or start your own business from home. You can get a bonus if you make money for the company that employs you, but it is not essential to get paid for doing this, so these two things are connected in practice.
If you can afford to invest in stocks and do it with your capital, then the answer depends on whether you have enough time to devote yourself full-time to trading without interruptions.
Being self-employed is much more secure than getting a part-time job because if trading does not work out, then at least you still have your primary income source.
Gain some knowledge
Know how stock trading works, strategies and risk management.
Never buy stocks without doing your homework first. The more you know about what you are buying, the better.
It is even more critical to research before investing in high-risk stocks because these investments carry a higher risk than other investments. Risk management includes:
- many things like diversification (minimum of 10 different stocks)
- having an exit strategy (know when to sell)
- not investing all your money in on investment (50-75 percent of your money should be supported).
You need to make sure that you understand how the stock market works, what strategies are for, which strategies work best at different phases of an economy, political conditions around the world, etc. Follow Saxo for more information.