With Zoom’s recent impressive performance following the global pandemic, it has become an excellent investment ground for traders. Zoom’s stock grew exponentially in 2020, with a remarkable 425% increase within the year. The reason for its impressive growth was simple. Zoom provided a platform for companies to organize meetings, collaborate and continue their businesses irrespective of the pandemic. As social distancing became the order of the day and replaced physical distancing, Zoom became even more critical. The importance of this virtual communication tool went beyond its usage by companies. It is equally used by families and friends and even for recording videos, presentation purposes and so forth.
Will Zoom’s stock continue to grow?
The recent surge in Zoom’s stock was caused by the global pandemic, but will this surge continue? Although Zoom has taken a notable place in the industry, it may not continue surging as it did during the global lockdown. As physical meetings take over virtual meetings, Zoom usage (and therefore its stock) may go down.
Zoom’s team is committed to improving the brand, so companies will likely continue being loyal to the brand.
Choosing the right investment broker
As with any other trading, the first step in trading Zoom is choosing the right broker. This is an area where so many people get it wrong. The broker you choose will go a long way in determining how successful or unsuccessful your trade will be.
A stockbroker or an investment broker is an investment/financial advisor or professional who provides financial and investment services such as purchasing and selling stocks and other investment services for a commission. CAPEX.com is one of the best brokers for trading CFDs on Zoom and other CFD instruments. The platform offers a slew of services to make the trading process easy and seamless. Furthermore, CAPEX.com provides all the tools and resources you need to have an overview of the market. You can track and monitor all your trades from a central dashboard and take advantage of the platform’s materials and tools to trade effectively.
However, after identifying a good broker, the next step would be to open a trading account. This account registration procedure may differ with the broker you choose, but the underlying concepts are generally the same. For CAPEX.com, you will need to fill up a simple form to specify your details. After creating the account, you will have the option to either trade with a live account or a demo account.
Trading with a demo account is the right option to choose if you are a new trader or not familiar with the system. It allows you to familiarize yourself with the process and understand how it works. You will also be able to get educated before delving into actual trading. When you trade with a live account, you will have to pay in real money from your bank account.
Furthermore, it is also essential to consider how adding a particular stock will alter your entire investment portfolio. You can also add other investment instruments such as CFDs on platinum trading, CFDs on ETF trading, and so on.
Creating a trading strategy
Before starting to trade, it is helpful to develop a trading strategy. It is also advisable to familiarize yourself with a strategy when trading on a demo account before applying them to a live account. While there are so many trading strategies, the most common ones include news trading strategy, end-of-day strategy, swing trading, day trading strategy, scalping trading strategy, trend trading strategy, range trading strategy, etc.
News trading strategy is one of the most effective strategies to use. It involves trading based on market expectations and news. However, it would be best if you were skilled at making use of it irrespective of the speed of information. This trading strategy has its drawbacks. Apart from the fact that it requires expert skills, trading positions open all night may incur overnight risks.
Another commonly used trading strategy is the end-of-day strategy. As the name implies, this involves trading near the close of the market, especially when the price will close or settle. To make effective use of this strategy, it is recommended for the trader to pay keen attention to price action, especially compared to the price movements on the previous day. Traders who use this strategy predict how the price will move in line with the price action.
Swing trading strategy involves trading on both sides of the market. In other words, this strategy allows traders to take advantage of changing market conditions.
CAPEX.com provides an efficient platform to trade various kinds of securities and stocks. Zoom trading through CFDs on CAPEX.com is easy and very efficient. You can also take advantage of multiple resources provided by the platform to trade better. CAPEX.com delivers many learning materials in the Trading Academy and practical tools to aid in market analysis. The Trading Academy offers valuable materials that will teach you everything you need to know in forex, from basics to advanced. You can also learn how to use mathematical calculations (and even practical mathematical algorithms such as Fibonacci) to read charts. This makes analyzing your marketing and creating helpful strategies easy. You can also come up with a unique system that could give you an edge in the market.
Furthermore, it is easy to set up notification and receive analyses from top providers worldwide via the platform. With CAPEX.com, you will always get the support you need when you need it. You can access various markets on the platform, such as CFDs on bonds, ETFs, forex, cryptocurrencies, shares, to mention a few. You can get started by creating an account with the platform or contacting customer care to discuss any issue.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.