About shares trading
Investors who trade CFDs on shares (or equities, as they are also known) tend to be more focused on conducting a fundamental analysis of stocks, such as how the latest global and political news impacts the markets, when fine-tuning a trading strategy. Traders will often focus on specific sectors at the same time.
Equities can be particularly volatile when companies announce their financial results, which tend to be released quarterly, so keep an eye on a firm’s corporate calendar to stay up-to-date with its news and events. Shares in the same sector can also be volatile if a rival releases a report.
Some shares are regarded as defensive or cyclical. Defensive stocks tend to outperform during periods of uncertainty, while cyclical stocks often outperform during periods of strong economic activity.