For investors, finding a share to buy can be either be one of the most rewarding activities or one of the most daunting. Finding out which shares to buy today is something that can be quite time-consuming but with the right eye, any keen investor will find it quite lucrative in the end. You must be able to identify a share that will increase in price or else it is not worth your while. So here are a few tips to help you identify shares that have potential.

• Look for a share that goes on sale
• When it hits your preferred buy price — buy!
• Look for stocks that are undervalued
• Patiently hold your stock if possible
• Do your homework

Investors should buy shares they are familiar with for best practice, but if you read up online or speak with other investors you can get a feel for the best shares to buy now. A common sense strategy combined with the above tips should be a good start to finding out which shares to buy today.

Read on to learn more about CFD and share trading.

What are CFDs?

CFDs (Contracts for Difference) is a popular method of derivative trading. They are derivative products that enable you to trade on the price movement of underlying financial assets (like shares, commodities, and indices). With CFD trading, you can speculate on the rising or falling prices of the moving global financial market (or instruments). CFDs is an agreement to exchange the difference in the value of an asset from the time that the contract is opened until the time that it’s closed. You never actually own the asset or instrument that you trade, yet you still benefit if the market move in your favour or lose if the market moves against you.

A primary advantage to trading CFDs is that it is easy for a trader to short sell a counter. Without CFDs, the trader has to borrow stocks to short which is dependant on the supply. Someone needs to hold the stock and needs to be willing to lend to this trader so that later the trader can sell and buy back to return it to the owner. The wealthiest investors have complete control of their time. To free up their time, most of these investors trade CFDs online with the help of experienced shares brokers. By trading CFDs online, it helps traders to make money at any time. Also, it provides them with the option to pick the asset type, the type of trade, and amount to trade. Therefore, it’s important to choose the best online CFD stock broker for shares to buy that meets your financial goals.

To learn more about CFD Trading, please see our tutorial: The Basics of CFDs.

Difference between CFD trading and share trading

The central difference between CFD trading and share trading is that when you trade CFDs, you do not own the underlying share. With CFDs, you don’t actually own the instrument or asset that you’ve chosen to trade. However, you can still benefit from the trade if the market moves in your favour, or you can make a loss if the market moves against you. On the other hand, with share trading, you enter a contract for exchanging the legal ownership of the shares for money, and you own the equity.

Choosing the best online brokers for trading shares

When choosing the best online shares brokers, it’s crucial that you look into reputed websites for additional broker comparison. An online CFD broker should have the ability for executing the trades that you order for and to manage these trades from your online account.

Characteristics of online shares broker sites

An online CFD broker’s website is different from the regular trading and investment websites. The site should allow simple navigation for all users, whether they are a novice or expert traders. Traders should have access to the various market types through the site. The online CFD broker should provide up-to-date research by professional analysts.

The best CFD stockbroker comes down to making sure that you ask the best questions for determining your CFD trading needs. Our guide looks at the most relevant questions and topics to ensure that the CFD broker that you choose is ideal for you.

Tips on choosing the best shares brokers to trade CFDs

• It’s essential that you select an online stock broker that offers traders narrow spreads and cheaper finance for the various CFD products
• Pick a broker who provides the essential trading tools and the app for mobile trading
• Choose a CFD stockbroker who complies with rules and regulations and offers specialized asset classes
• Online CFD shares brokers should have access to tap into the global markets
• Choose an online CFD shares broker who allows traders to open an account with a minimum deposit

Best shares to buy for 2018

Since it is already Q4 of 2017 and the new year is coming soon, it is time to prepare for 2018. This means that it is time to start looking into what are the best shares to buy in 2018, and what you should know what which shares to buy now and which to wait on. Low-priced CFDs stocks and shares to buy can appear attractive to smaller scale investors that can’t necessarily afford substantial stakes in companies with higher priced shares. When you look at these low-priced shares, you can look at the same trends in value, growth, and momentum to properly analyze the potential that these companies have.

Best penny shares to buy today

Penny shares typically trade outside of the major market exchanges at a relatively low price, and they have a small market capitalization. Generally, penny stocks are considered to be highly speculative and high risk due to their lacking liquidity, small capitalization, large bid-ask spreads, and limited following and disclosure.

The performance of penny stock was not as strong in October 2017. The market players turned their attention to tax cut legislation that could underpin the blue-chip earnings in the upcoming quarters. With the speculative fervour from now until the end of the year should benefit the penny shares, but the stronger return may need to wait until the 2018 January Effect.

For more information on shares trading, please see our FAQ, trading guides, and articles.