Practice doing practice trades early in your career as you will be dealing with big finances. This will help you secure your transactions in the future.
Learn from a good instructor. Many companies and brokerage houses provide the opportunity to attend trading training courses. There are also programs for training in working with financial markets. Don't miss this opportunity to enlist the support of a mentor.
Try your skills in real trading. Once you have already gained enough experience on demo accounts, you can move on to more professional level. Very little on this moment truly successful traders out of the total number of players, so it is difficult to say which strategy to choose.
Work more on “short positions”, when the buying and selling process takes place within 1-2 days. This is necessary in order to secure your activities in an unstable market and insufficient experience. Many people speculate on “long positions”.
Think of stock trading as a real, highly profitable specialty. An experienced trader will never interpret his activities as just a game or entertainment. Cultivate patience, integrity, and a willingness to take action and make mistakes.
Constantly develop and progress in your chosen business. Remember that only 2-3 people out of 100 will become truly successful players on the stock exchange and then themselves will be able to manage the capital of other people. Strive for these heights.
note
pay attention to start-up capital. You won't get by with just one hundred dollars.
Improve your trading skills every day and you will become a professional.
Sources:
- Economic news portal and more
- play on the stock exchange via the Internet
Before you start taking specific steps to find a broker, find out the terms of play on the stock exchange, the size of the commission, and so on, you need to clearly and clearly decide on the main thing: why do you want to play on the stock exchange?
Most professional traders wince when they hear the phrase “play the stock market” because they work to make money on the stock market. If you want quick and easy, then you are in the wrong place. Most likely, you need a lottery or casino. If you are ready for serious and painstaking work, then you have chosen the right path.
Now about the specific steps.
1. Amount. Decide on the financial amount you are going to. Be prepared to lose it. You have to pay for everything, including learning to play the stock market. You cannot invest your last savings in the stock exchange.
2. Exchange. Choose the exchange on which you are going to earn money. You can choose Forex and make money on exchange rate differences between world currencies. There are plenty of tempting offers on the Internet to enter this market. Earn money on the MICEX by buying and selling. Riskier futures trading can be mastered as an experienced trader.
3. Choosing a broker. Before choosing a broker, you should carefully read his working conditions, commission, tariff plans, credit conditions for margin trading (i.e. trading on credit) and fees for custodianship of shares.
4. Internet. If you are going to trade on the stock exchange in a fairly dense mode, you need to take care of a reliable, preferably unlimited, connection with the ability to insure yourself in case of hardware failures in communication with the provider. This can be done by configuring your cellular telephone like a modem, and keep this channel just in case.
5. Training. You can play for free on the stock exchange demo mode, having a virtual account, usually 1 million rubles. Carrying out transactions completely imitates work on the stock exchange. This method is good for familiarizing yourself with the program, but is very controversial for real training, since it is much easier and calmer to sacrifice virtual money.
In the format of this article, it is very problematic to prepare a person for real trading on the stock exchange, for working with technical indicators, understanding the trend, its support and resistance levels. There is a lot of specialized literature for this. Only the following important points need to be taken into account:
1. Try to trade with the trend. Don’t just enter a position at random. Every step must be thought out.
2. Be sure to hedge your positions with stop loss orders to minimize your losses. Do not average your position, otherwise you will quickly turn from a player to an investor, or to bankruptcy.
3. Don't be greedy. Get out of the position in time, acting according to the rule: “You earned it yourself, let others earn it.” Remember the words of the most successful trader in the world, Warren Buffett: “Minimize your losses, and the profits will follow”
Video on the topic
The stock exchange is currently seen by many as a source of almost “free” money, as a symbol of prosperity and financial well-being. It may be so, but it’s just the hardest work. If anyone views the stock exchange as a betting game like a betting game, then one should only sympathize with their savings. So, the stock exchange is not a game, but a job!
Instructions
Firstly, it is impossible to beat the exchange; it is not a rival, but a . On the stock exchange, owners of shares (raw materials, precious metals, currencies) and those who want to purchase them meet. In Russia, the expression “win on the stock market” is common, but it does not mean a game in literal words, but a source of income. Americans, for example, say “make money in the market”? this is a more reliable option. Remember: when we say “play and win on the stock market,” we mean work.
The first thing a stock exchange player needs to know is “leverage”. This means the opportunity to enter the market with 1-2 thousand dollars and take out a loan without interest and commissions, ultimately receiving an amount several times greater than your initial capital. At the same time, it constantly monitors your transactions - as soon as you have carried out an operation that has spent all your money, leaving only borrowed funds, your account is blocked and the great and terrible “margin call” arrives. The last concept means a request to top up your account. It's simple.
If everything was really that simple, then the world would already be bursting with money bags. You can become a millionaire in a couple of days only if you are a billionaire. To play and win on the stock exchange (to work and earn money), it is advisable to have an economic education. You cannot buy shares (currency, raw materials, precious metals) at random - this is a direct road to poverty.
The most common methods that traders use on the stock exchange are fundamental and technical analysis. The first refers to a thorough examination of the economic indicators associated with the asset you are about to purchase. If your goal is currency, then you need to analyze the country’s GDP, demand for goods, various indices, bank discount rates, etc. If a trader decides to buy shares, then he studies financial condition the relevant company, if raw materials, will need information and forecasts for supply and demand in the near future. When using technical analysis, a trader looks at how the market behaved before, and based on this data, identifies a trend that, in his opinion, will repeat in the future. In this way, adherents of technical analysis try to guess the behavior of the exchange.
Recently, supporters of these two types of analysis are beginning to converge in their views. Many argue that it is best to “mix” forecasting methods. This point of view seems logical, if only because no fundamentalist can do without asset price charts before a transaction.
Sources:
- How to become a trader
The Moscow Interbank Currency Exchange (MICEX) is a large trading system for the sale and purchase of shares in Russia with a wide range of information and consulting tools. Working there is attractive for traders (participants) due to low commissions and high liquidity financial instruments.
Instructions
Work on the MICEX includes several areas: foreign exchange market, stock market, government securities market, commodity market. Work on the exchange is underway, and others are participants credit organizations. As a private trader, you cannot apply directly, but you can do so through a participating broker. For cooperation you pay a certain commission, and in return you receive a special program through which you will go
Technically, working on the stock exchange is not difficult. You observe changes in stock prices in the provided program, take advantage of consultations and information published on the website. You make a decision to buy or sell and submit the appropriate application (for example, to buy). And if there is a corresponding sell order on the exchange, the transaction is completed. After some time, when the price rises, you place a new order, now for sale. The second part of the transaction is completed and you receive a profit, a percentage of which you pay to the broker, the rest is credited to your trading account opened in the system. The first stage of the transaction is called “open a position”, the second is called “close a position”. When a position is open, the state of your trading account is in limbo, however, most terminal programs have an automatic closing feature - stop-loss (literally “stop losses”) minimizes losses if the price moves in the opposite direction to the predicted one, and take-profit (“take profit”) - closes the deal as soon as the price reaches the desired level. Thanks to these features, you don't have to constantly sit at the terminal.
Many brokerage organizations practice initial training new traders, periodically conduct seminars. Take advantage of this opportunity. The process of playing on the stock exchange seems simple only on the surface. In fact, this is a complex mechanism that involves not only economic factors, but also many others (political, social, psychological). Therefore, it is important to arm yourself necessary knowledge at the very beginning, so as not to lose all the money at once and not be disappointed in the stock exchange game. Because when skillful work it can be a source of good income.
Video on the topic
note
Main volume exchange trading in Russia it is carried out on the MICEX.
Helpful advice
When choosing a broker, you can go the opposite way: select a suitable terminal program on the Internet, and then look at the organizations that use it. Ultimately, it's yours main tool and assistant. Carefully read the terms and conditions of the brokerage company before concluding an agreement.
With the development of the Internet, trading on the stock exchange has become available to millions of people. The opportunity to make easy money attracts many, but out of a hundred traders playing on the stock exchange, at least ninety-five lose. According to statistics, only 3-5% of traders win. Is it possible to become one of them and what is needed for this?
3.5 (70%) 8 vote[s]
In the 21st century, trading on securities and cryptocurrency exchanges has become one of the most popular ways managing and accumulating your capital. In this article we will look at fundamental questions: where to start as a trader and investor, how to start making money on securities, choosing a trading account, installing a trading terminal, examples of independent trading and answers to frequently asked questions.
This is a fairly extensive article in which we will analyze all the necessary nuances for trading on the stock exchange. Be sure to read everything to the end. Every piece of advice and point was written by a professional in the world of finance. The material is presented as clearly as possible, without fluff or advertising.
1. Introduction to stock trading
It's no secret that there are many approaches that will allow you to trade on the securities exchange:
- Independent trading. No commissions for input/output and other actions. Complete freedom in choosing securities and actions with them.
- Trust management(transferring money to traders for management). A risky approach where you are completely dependent on the success of another person.
- Auto-following (copying transactions of successful traders or profitable strategies). It does exist, but you will have to pay a commission for this service. Plus, strategies that were successful in the past do not guarantee income in the future and are even more likely to merge.
- Mutual funds. Mutual funds are very popular. However, their income depends entirely on the prices of stocks and bonds. If everything grows, then they will also grow. Cons: difficult to predict income. There are often commissions for input/output; you cannot withdraw money instantly.
Each of them has its own pros and cons. There is no perfect approach for every investor. We will consider exclusively the first option.
Trading on the stock exchange is a broad area. There are many financial markets:
- Commodity exchange
- Currency exchange
- Markets for derivative financial instruments (derivatives). Futures and options are traded on them
- Cryptocurrency market. There are special cryptocurrency exchanges and approaches to trading on them (trading on crypto exchanges). This is where volatility is highest.
Each investor himself chooses a suitable platform for work. Most people choose the stock exchange (stocks and bonds) as the most understandable and state-regulated reliable way investing.
2. How to open an exchange account - step-by-step instructions
An exchange account can be opened through a broker. Access to exchange trading on the Russian stock market is provided exclusively through it. Only legal entities with a special license can trade directly on the MICEX.
There is nothing wrong with the broker being your intermediary and consultant. There are practically no commissions, and those that exist are too small. In addition, the broker will prepare all the tax documents for you.
Below is step-by-step instruction to open a trading account.
Step 1. Register with a broker
I advise you to register with one of the following brokers (I have been working with them for many years):
These are the leaders in Russia (included in the top 5 according to all broker ratings). They truly offer quality brokerage services.
Step 2. Opening a trading account (IIS or EDP)
The installation contains standard steps: specifying the installation path, accepting the license agreement and the initialization process itself.
Next, you need to log in to the program. You specify your login and password yourself using the special application “keygen.exe”. After which two keys will be generated for you: public and secret. The public one will need to be uploaded to the broker. The fastest way to do all these steps is to call technical support and they will tell you everything.
You can customize the table with a list of securities as you wish. Stocks, bonds, currency can be added/removed/raised higher and lower. Add or remove columns. All this is done in the properties menu:
To open a deal, you need to select an instrument and submit an application. Submit an application to the exchange:
Your orders will be displayed in the “table of my transactions”.
Here you can see active positions on securities. In general, this data is sufficient for stock trading.
Quik's capabilities allow you to do many useful things: add indicators to the chart, change timeframes, read news through the terminal and access the terminal via the API (this is necessary for automated trading).
3.2. Finam Trade application for trading on the stock exchange
Not everyone has a computer with a terminal installed on it. Life is dynamic and many people are away from home most of the time. To trade on the stock exchange, you can use the special application "Finam Trade" (broker Finam), which can be installed for free on any phone/tablet via Android or iOS.
It has absolutely all the tools for trading that a standard terminal has. You can place and withdraw orders. View transactions that have already taken place. Moreover, you can engage in trading, both on the Russian stock market and on the American one.
It is also convenient that you can see the glass and price chart. In fact, the Finam Trade application is a complete tool not only for trading, but also for graphical analysis.
This is what the Finam Trade quote charts look like:
An example of a securities portfolio at Finam Trade:
4. How to make money on the stock exchange
Making money on the stock market is the dream of many traders and those who generally understand the essence of securities. But to make a profit from securities, you must have stock exchange knowledge and experience. The latter is especially important. You can read dozens of books on trading, but you can only learn from your mistakes.
In this article we will not consider trading and investment strategies. This is a huge topic for discussion. You can read them in a separate section on our website.
There are two approaches to making money on securities: investing and trading. Let's consider the pros and cons of each direction.
4.1. Speculative earnings on the securities market
Speculative earnings- This is the most common way of trading in the stock market. The main point: buy cheaper, sell more expensive. At the same time, the time interval for holding an open position is extremely short. The purchase and further sale occurs within one day and possibly even one hour (it is rare that a position lasts more than a week). It is also called intraday or day trading.
Speculation became extremely popular with the advent of mobile applications for trade. Now you can carry out active actions practically “on the go.”
The speculative approach takes time and nerves. At the same time, for most speculators the final result turns out to be unprofitable. But few people want to admit their mistakes and suffer for a long time, slowly draining their deposit.
But it’s not all bad; there are also more professional participants who trade profitably. But still, this plus does not amount to hundreds of percent per annum, so is it worth devoting all your free time to trading? Life is too short to devote so much attention to speculation.
The main problem of speculators is that there are no ideal strategies that could consistently generate profits. Strategies based on a long-term period provide almost guaranteed income and require virtually no action. Yes, the income for the year will be only 10-30%, but there will be almost no labor costs.
4.2. Investing for the long term
The investor's approach to trading is more reliable and calm. Transactions are concluded long-term. It is rare for an investor to sell a security a couple of days after purchasing it.
Most often, investors form an investment portfolio of stocks and bonds. By this they ensure their capital from the measured fluctuations that are inherent in all exchange markets. As a rule, every year the market makes movements of 30%-60% (meaning the spread from minimum to maximum). Moreover, it can go down by 20%, and then grow by 31%. as a result, grow by only 5% over the year.
The simplest way to invest is to buy 50% stocks and 50% bonds. But a more competent approach is to determine the state of the market as “overbought” and “oversold”. I put these concepts in quotes because no one can say with any guarantee when exactly the price became excessively expensive and when it will be excessively cheap.
In the entire history of the stock market, nothing has happened. It happened that the value of a company (capitalization) at some point dropped to the level of annual profitability, that is, the company was so cheap that in one year its profit was greater than the current capitalization. If this is a reliable company, then such a moment would be an ideal entry point (purchase).
Note
When I say on average 10-20% per annum, I mean time periods of 10 years. Naturally, if you take a single year, you can get either +50% or -30%, or maybe just 0% per annum.
New opportunities with the advent of ETF fundsSince 2014, ETF funds began to appear on our market. Different ETFs hold different assets. For example, there is an ETF for stocks Russian companies(copy the RTS or MICEX index), there is the American SP500 index, bonds, Eurobonds. The big advantage of these funds is that you immediately receive a diversified portfolio. That is, you don’t have to worry that it will go bankrupt.
ETFs are traded like ordinary shares on the Moscow Exchange. Their cost is from 500 rubles to 3000 rubles 1 piece. It is very comfortable. You can easily get them or sell them directly at the exchange rate.
Listed below important tips for novice investors from professionals.
The stock market is a tool for increasing your capital, but on the other hand, it is a “game” in which you can lose. It is especially risky when considering short periods of time. So, what needs to be done for an ordinary investor to win in the stock market.
5.1. Trading and investment training
Trading and investment education is extremely important. There are many outstanding traders who have a lifetime of experience behind them. Read these books, watch training videos on Youtube. Almost all material can be found for free. To do this, you don’t need to sign up for any courses or pay money.
Also, don’t think that after reading all the books you will definitely become a millionaire in a year. Books add experience and skill, but do not provide any guarantee of success. You will simply learn faster not to lose, but to earn money.
5.2. Don't look for the "holy grail"
There is no need to waste time searching for the “holy grail” of quality trading strategy. If someone came up with a win-win trading system, he would become a multi-billionaire in a short period of time. However, there have never been such cases in history, and yet many traders are trying and are still looking for it.
Those who managed to quickly earn fortunes (millions of dollars) from a small starting amount of money were simply very lucky. Just like some people are lucky in lotteries. To earn big money practically from scratch, you need to take a lot of risks. And one unsuccessful transaction can destroy all the funds accumulated so far. Usually big money is earned gradually thanks to professional money management and reasonable risks. Success and wealth come with time (it takes at least 5-10 years).
There are thousands different strategies trade. They all revolve around 5 parameters: opening/closing price, high/low and volume. It's not much that we have, but technical analysis professionals have created thousands of trading systems. I recommend not focusing on such a wide variety. Of course, it’s worth studying a few or even several dozen for experience, but most likely you will never use them.
Elementary strategies work best in the stock market:
Yes, they will bring only 10-30% per annum. But this is enough to become rich. Use compound interest, reinvest your income and your wealth will grow exponentially.
If you are interested in how you can quickly increase your deposit with reasonable risks, then I advise you to read about the following strategy:
5.3. Do not borrow for stock trading
You should never take out debt to trade in the stock market. These are long-term instruments. Debt is fraught with the fact that it must be repaid. And few people want to wait several years for a return.
Plus, this is a risky “game”; you shouldn’t bet money you don’t own. Psychology will interfere with earning money with this approach, because it is scary to lose them. And if you don’t take risks, it’s impossible to make money.
5.4. Don't listen to analysts and forecasts
Forecasts for stock market share prices have an extremely negative impact on trading systems for any investor. Analysts always make forecasts taking into account the current trend. If the market is growing, then they will say that it will continue to grow. If it falls, it means it will fall.
Any forecasts confuse traders and investors. Never read or listen to them. Japanese candlesticks, together with volumes, fully reflect the current situation on the market. This is quite enough to make the right decision.
5.5. The market is constantly changing
Nothing lasts forever on the market. It is extremely volatile and not stable. Sometimes what was promising and looked bullish that month looks negative this month.
Don’t be afraid to sell something that hasn’t made a profit and doesn’t look promising. Small losses are better than big ones after a year. Know how to admit when you are wrong. Any professional makes mistakes, but due to the fact that he is aware of everything at the time, he ultimately achieves success.
What amount should you start trading on the stock exchange with? Is $500 enough or do you need at least $5000? Where is it better to trade – on MOEX or NASDAQ, NYSE, Euronext? These and other questions resulted in a non-boring guide containing a complete set of instructions and explanations on how to start trading on the stock exchange.
The content of the article:
The very concept of " stock exchange» very general for a specific action, since there are exchanges to work with different types assets: currency, stock, commodity, derivatives market, etc., each type has its own specifics, so it’s a good idea to first decide what is closer to you and what assets you prefer to work with, for example, trade commodity futures for certain varieties of coconuts or buy mutual fund securities.
This article will talk about how to start trading on the stock exchange and how to buy/sell shares. When asked which exchange to trade on , Usually there are 3 possible answers: RF, EU, USA, and everyone else seems Indian or Australian exchanges immediately cut off.
I believe that this is not entirely correct, since there are no less interesting companies on the Tokyo, Australian and other exchanges, especially since it is even useful for portfolio diversification.
You will learn a little more about how to enter international exchanges below, but for now let’s determine what you need to start trading and how to prepare.
How to start trading on the stock exchange
You can buy shares of your favorite companies on stock exchanges, but the exchange does not work with individuals and all transactions take place only through brokers - intermediary companies. Brokers provide access to certain exchanges, so before you do, find out if they have access to the exchange you need.
If you want to buy shares SONY, then there is no point in contacting a broker who only provides access to the Moscow Exchange, since you need Tokyo.
Also, the purchase of shares is possible only during the trading hours of the exchange from Monday to Friday from 9 to 17:00 on average. For example, the Tokyo Stock Exchange starts working at 3 a.m. Moscow time. True, this does not mean that you need to set your alarm clock for 4 am, you will simply give an order to the broker to buy shares at a time convenient for you, and as soon as the exchange is available for trading, your order will be executed.
Today, all the world's stock exchanges have switched to online trading and settlements, so there is no need to travel and stand in queues; you can open an account with a broker without getting out of bed in a few minutes.
Let's return to the fact that to start trading on the stock exchange, you need to find a broker.
As you already understood, it is better when your broker provides many exchanges in its assets, and not just one. Although many people initial stage want to choose one exchange to trade.
But such thoughts are also understandable, because it is easier to stop at one exchange and not know anything else, especially when it comes to choosing a broker.
The fact is that according to the laws of the Russian Federation, only qualified investors with a minimum amount in the account in 6 million rubles.
But this is also why many Russian brokers have subsidiaries registered in the EU.
Based on many factors above, I am not asking which exchange is better to trade on, but rather focusing on which stocks to buy.
How much should I start trading on the stock exchange?
Some say as much as possible, others as little as possible, others say specific numbers, but there are no rules here. You can buy shares Amazon for $1000 or shares Sberbank at $2.5.
If you want to start trading on the stock exchange on the Internet, then don’t look at the amounts, start with what you have.
Every broker has set size minimum deposit, for example, the minimum first deposit from a professional broker – $250 . For this amount it is already possible, Microsoft or Coca-Cola And Sberbank.
However, you still can’t buy much with $200, so try to replenish your deposit monthly and buy additional shares of different companies, increasing your portfolio not only quantitatively, but also qualitatively. It will be better and more productive than constantly waiting better conditions, because time and experience are of great importance.
What stocks to buy and how to develop
As in any other business, in trading on the stock exchange, before moving on to serious work on results, you need to understand the market, because you cannot imagine such a situation that, for example, a person who has never studied medicine suddenly begins to engage in neurosurgery, hoping to this for success. What it will look like and what consequences it will lead to is quite obvious.
The truth is that stock trading cannot be learned. More than 90% of millionaires and billionaires have no education.
You can learn what a stock exchange and stocks are, where to click the Buy button in the trading program, but what stocks you should buy and for how long and why - this is not taught. Yes, you can conduct fundamental analysis of a company, technical analysis, but there are thousands of companies and how to choose the right one from them?
For example, Peter Lynch I wrote about how the shares of an American funeral home soared a hundred times, or a plastic processing company. But I am sure that more than 95% of investors do not think about such companies.
Poll: What attracts you to stock exchanges?
Poll Options are limited because JavaScript is disabled in your browser.
Prospect of being wealthy 46%, 89 votes
Opportunity to save money profitably 27%, 53 vote
Desire to create a securities portfolio 14%, 27 votes
Purchase of foreign shares 5%, 10 votes
Purchase of Russian shares 4%, 7 votes
Information sources
You need to acquire sources of information, these could be financial sites, books, ratings... where you will learn market news, about new business trends, for example, about lithium batteries that Tesla uses.
Among these I would highlight:
Goals determine the nature of the portfolio
The next stage is defining goals. What does it mean? This means that you need to decide for yourself what profitability indicators suit you, how long you expect to invest, and how much time you can spend on analysis and trading. Having answered these questions, you can move on to choosing the type of strategy, which should determine how to start trading on the stock exchange and depend on:
- your character(are you able to wait a long time or prefer to act quickly);
- desired investment horizons(for example, buying shares cheaply and then selling them at a high price, waiting for weeks and months, making intraday trades or quickly scalping the minimal profit generated);
- acceptable level of risk(conservative strategies based on passive or dividend income, medium-risk based on a mixed selection of assets, or high-risk investments in small-cap firms and startups).
How to trade on the stock exchange the chosen strategy will determine: for a conservative investor this is the choice of the most profitable bonds and the purchase of shares with the highest dividends, 
for scalpers - trading in highly volatile assets, for classical investors who consider Warren Buffett their idol - this is buying undervalued, promising shares, with long term goals and reinvestment of profits.
Someone is passing by fundamental analysis can focus on the technical levels of the moving average (MA) with periods of 200 and 50, which show how much the stock is overvalued or vice versa and other graphical analysis tools.
Your goals will determine your stock portfolio and the areas in which you will focus more than others.
However, I do not see any limitations or obvious strategies in successful investors. All successful stock market players buy everything that is undervalued, cheap and has prospects. And here it is impossible to limit yourself to one industry or market. Each of them has enormous potential.
I usually find something very cheap that makes a positive difference and buy it.
– Jim Rogers - co-founder of George Soros' investment fund Quantum
After the start of trading, after the first purchase of shares, you will immediately understand that the process itself is no more complicated than ordering pizza on the Internet. This way you will begin to repeat your purchases and over time you will collect a decent portfolio of shares that will please not only your eyes, but also your financial component.
Instructions: how to trade on the stock exchange
Let's summarize all of the above in simple sequence actions. To start buying and selling shares on the stock exchange, you need to:
The best brokers for trading and investment
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