- Stock
— Stock trading
— Purchase and sale of shares on the Moscow Stock Exchange (MICEX)
— How to trade securities on the stock exchange?
— How to start trading shares?
- Conclusion
Shares are a share of a company. A person who owns shares in a company is a co-owner. The company is the issuer of these shares.
The exchange is the organizer of stock trading. The purchase and sale of shares takes place there.
In Russia, the only exchange where you can buy shares of large Russian companies is the Moscow Exchange (“MICEX RTS”). In order to trade shares on the stock exchange, you need to open an account with a brokerage company.
Shares are traditionally divided into three “echelons”, these are:
1) "Blue chips".
The most liquid shares of the largest Russian companies are named after the chips in the casino, where blue chips are the most expensive. During the day, most exchange transactions are carried out with shares of the first echelon, both in quantity and in volume.
2) Shares of the second and third tiers.
These are shares of medium and small companies, which, however, are listed on the stock exchange. Due to their lower trading volume, these stocks are mostly potentially undervalued, meaning they have significant growth potential, but they are less liquid and working with them requires more experience and economic knowledge.
— Stock trading
Stock trading, one of the most common forms of trading on the stock exchange, is inherently quite simple and can be learned by anyone. You can trade stocks without leaving your home.
However, it is necessary to acquire a certain minimum of knowledge and make certain changes in your life rhythm. After all, in the activity of trading shares you will not have bosses, and you yourself will give yourself instructions and control their execution. Your main tasks will be in the field of psychology rather than technology.
Of course, you should first obtain theoretical knowledge about such an activity as stock trading. The necessary information is widely presented in the relevant literature and other information resources.
Two of the strongest feelings permeate a person when trading shares on the stock exchange - fear and greed. Your main task is to bring these feelings under your control. Whether you take advantage of your chance or not depends only on you. You will have to take any step consciously, understand why you are doing this and not otherwise. This will give you confidence in your decisions.
Let's establish the basic configuration parameters of an ordinary person who is engaged in activities such as trading shares on the stock market:
1) At home there is a computer connected to the Internet on which specialized software is installed, usually provided by a broker (trading terminal plus CIPF - information cryptographic protection system);
2) An agreement on brokerage services has been concluded with a broker (bank, investment company, etc.);
3) The investment account balance is from 1000 US dollars;
4) Trading platforms - MICEX, RTS (including FORTS), trading instruments - shares of Russian issuers;
5) Frequency of transactions - from several days to several weeks;
6) Time for trading shares (viewing quotes, news and analytics, making and implementing trading decisions, analyzing achievements and mistakes) - morning (before work), afternoon (if possible), evening (after work), weekends and holidays;
7) Sources of news and stock analytics - RBC TV channel, Quote.rbc.ru and PRIME websites (at first this is quite enough);
8) The amount of profit is not established...
— Purchase and sale of shares on the Moscow Stock Exchange (MICEX)
Trading shares on the stock exchange is the most common and easiest way to take your first steps as a trader in the stock market. The most popular platform for trading shares on the stock exchange in Russia is the Moscow Exchange stock market - the largest stock market in the CIS countries, Western and Eastern Europe.
The stock and unit market of the Moscow Exchange allows for trading shares of leading Russian companies (for example, Gazprom, Sberbank, VTB and other issuers), shares of mutual funds, foreign shares, depositary receipts for them, etc. Since the stock market for shares is an organized platform, unlike the over-the-counter market, it has a number of rules and restrictions on the mechanism for making transactions (for example, the volume of shares within one lot is limited).
In order to try trading shares on the Moscow Exchange stock market without financial consequences, it is enough to open a special demo account with a brokerage company.
— How to trade securities on the stock exchange?
_______
1) If you have decided and want to engage in stock trading, you need to start with the theoretical part. This is a very important stage at the beginning of your career.
2) Trading shares has its own characteristics and subtleties, try to study them. It is best to work purposefully; if you have chosen this investment goal, do it until you have studied this area thoroughly.
3) Make it a habit to always monitor the economic situation in real time; you need to know the situation both globally and in the target direction. Bookmark sites on your computer with stock news and forecasts.
4) Usually new traders start with a demo account - this is a virtual exchange that helps assess their strength. Only after this you can go to real trading.
5) After training on a demo account, you can move on to the next stage, choosing a broker.
6) If you want to trade shares on the stock exchange yourself, online, you need to choose a trading platform. Pay special attention to this, trading platforms differ from each other - study all the features of the platform you have chosen.
7) Trading on the stock market is very hectic; you should always monitor your emotional state.
— How to start trading shares?
First of all, you need to choose a broker. The broker provides the opportunity for traders to trade in real time. And you need to choose for the reason that an individual does not have direct access to trading on the stock exchange.
A broker is an intermediary. When choosing one, you should pay attention to the commission, the quality of service, in general, and no less important, what kind of analytical platform this intermediary is ready to provide. Fortunately, there are currently many programs from which you can choose the one that is most convenient.
Of course, before you start trading shares, you need to open a deposit by putting money into your trading account. But you shouldn’t immediately rush into the market and try to earn a lot of money. The approach here is slightly different than, for example, in the foreign exchange market.
Firstly, shares are an instrument that can be bought or sold only during a certain period of time. At the end of the day, the stock market will close. This means that the frequency of gaps is 5 times greater than in the currency market. It matters.
The second is the role of stock indices, which act as the first indicators of stock market dynamics.
Thirdly, this is the liquidity of the shares themselves. This is perhaps the most important argument. Liquidity determines the size of the spread, the fee charged by a broker for executing a buy or sell command. Although, having selected a list of companies whose shares you plan to trade, it is still worth practicing on a virtual account. The market is the same. Only virtual money.
Work out your trading system. If a trader has moved from the foreign exchange market, he needs to feel the movement, the dynamics of stock prices, and the trading process itself. If a future trader decides to start trading for the first time, it is necessary to have a ready-made trading strategy.
It is necessary to work on it in the stock market, but you should not get too carried away in order to develop a strong reflex of fear of opening real transactions. It is possible to rebuild the indicator, perhaps to devote more time to fundamental analysis. When everything is ready, you need to boldly and carefully start trading shares.
Since this is a stock market, special attention should be paid to stock indices. They reflect the average dynamics of the stock market itself. The value of indices is highly dependent on the prices of shares that are included in this index. Thus, an index, which is calculated using a certain list of companies, can reflect the dynamics of a particular, say, industrial sector, or even the national economy as a whole. The most common indexes:
1) Dow Jones Index. (USA)
2) Indices FT – SE. (United Kingdom)
3) Nikkei 225. (Japan)
4) CAC – 40. (France)
5) DAX indices. (Germany)
When trading shares, you should pay attention to the indicators of the index that includes the company data. Thus, stock index performance can be, and is, part of a trader’s trading strategy.
- Conclusion
These days, more and more people are thinking about earning extra money. Every day the number of people who decide to trade shares is growing. And this is not surprising, because the chances of increasing your income on the Forex market are quite high.
In addition, any person who decides to try his hand at trading can easily buy and sell shares to make money.
Of course, everything is not so rosy here. After all, your profit depends on hard work and correct analysis of the current situation. But there is nothing complicated here either.
The material was prepared by Dilyara specifically for the site
Greetings, dear subscribers and guests of my blog! Today the word “promotion” (not to be confused with discounts in a hypermarket!) is familiar to almost every high school student. Hundreds of thousands of Russians trade them, traders and investors exchange experiences and give advice.
Here in Russia, a quarter of a century ago, everything was just beginning, and now many participants in those events receive a good increase in their pension in the form of dividends. Do you want to ensure a decent and active old age? Then it's time to figure out how to trade stocks on the stock exchange.
When Russian citizens received their first securities during voucher privatization, only a few knew how to choose the right shares, where they were traded, where to sell them later or, on the contrary, buy more, and how to learn to determine the right moment for buying and selling.
Since then, much has been simplified: securities have become uncertificated, they are traded via the Internet, and many training courses for beginners have appeared. Of course, courses are good, but the knowledge and experience of practitioners is no less useful.
Today I will try to dispel the fears of those of you who are almost ready to trade stocks, but are not quite sure that they will succeed. First, let's refresh our memory.
What are shares
A share, as is known, assigns to the owner a number of rights, which include the rights to part of the property (in case of liquidation) of the joint-stock company, as well as part of its profit in the form of dividends, to participate in shareholder meetings, and also (if there is a large block of shares ) to participate in the management of the company.
To become a shareholder, first of all, you need to purchase shares, which is documented in the form of an entry in the register of shareholders. There are several ways to solve this issue. The easiest and most convenient way is to become a client of a brokerage company.
An individual does not have direct access to exchange trading and the intermediation of companies licensed for this activity is the only opportunity to trade securities at market quotes.
Why do you need a broker?
Are transactions possible without a broker? Yes, they are possible. For example, two individuals may enter into a share purchase and sale agreement. It must contain the following information:
- Type of shares (simple or registered).
- Issuer, i.e. name of the joint stock company.
- Nominal price of 1 Central Bank, i.e. price at the time of issue.
- Number of papers in pieces.
- Current price of 1 share.
- The full amount of the transaction.
The right to own shares passes from one owner to another only after appropriate changes in the register of shareholders. To do this, an entry is made in the register about the transfer of ownership from the seller to the buyer.
A necessary condition is a transfer order from the seller to the registrar. In addition, additional annexes are drawn up containing the procedure for resolving possible disagreements. The buyer opens a personal account in the register where the shares will be accounted for, for which a special questionnaire is filled out.
Agree, this method is labor-intensive and can be used when the shares are not in circulation on the open market, or if the transaction is made at prices that differ greatly from market prices. In addition, trading without a broker is complicated by problems with finding sellers and buyers.
It is also possible to purchase shares directly from the issuer (in case of an additional issue, after a buyback and in some other cases). But beginners do not need to delve into such subtleties, since such transactions are usually carried out in order to restructure blocks of securities between large shareholders.
So, if you decide to trade shares through a broker (the issue of choosing a broker is a separate topic), you need to enter into an agreement with him for the provision of brokerage services.
The agreement specifies the rights and obligations of the parties when the broker executes client orders, as well as the procedure for processing transactions by the clearing house. After this, all that remains to be done is to download the program - a trading terminal and start trading.
But the question of stock selection remains: which ones to start with? Russian brokerage companies like, or, allow you to trade not only Russian stocks, but also American ones.
How to choose stocks
For example, the Finam company allows you to gain access to trading on the Moscow Exchange (until December 2011 MICEX) and on the New York Stock Exchange NYSE (colloquially “Nice”).
All transactions can be made from a single trading account. To make the right choice, it is useful to compare the returns of Russian and American stocks. Here's what's happening in the American information sector in 2017:
For comparison, TOP-3 among Russian ordinary shares included in the MICEX index.
However, there is a so-called second-tier shares, more risky, but potentially much more profitable:
What may be difficult for beginners is that these shares are less liquid, i.e. if necessary, they are more difficult to sell. The ratio of securities traded on the open market in Russia is shown in the diagram:
So still: which ones are better to trade? To do this, you need to analyze a number of factors:
- State of the industry to which the company belongs
- Growth potential of the stock (actual profitability, whether it is overvalued or undervalued)
- Dividend history of the company
For example, shares of Mechel JSC by the summer of 2014 fell more than 90 times relative to the January 2011 high. The company was in a severe crisis. But the competent work of management made it possible to save production and now the securities are trading 15 times higher than their minimum with great potential for further growth.
Need to keep in mind
People often ask how to trade stocks on Forex. Forex dealers themselves sometimes impose this service on beginners. But this is a lie. The instrument traded in such companies is called CFD (Contract For Difference).
This means that the trader does not buy shares, but makes money on the difference in quotes for a certain period. This is also possible, but with real stock trading you become a shareholder with all the ensuing rights, and if something happens, your money will not be lost along with a shell company, of which there are many among Forex dealers.
Books are constantly being published on the topic of stocks, both classics and new ones. A good reference for beginners is:
And if you want to take an express course in technical market analysis, get acquainted with the popular QUIK trading terminal and prepare for real trading, watch this free video webinar from the guru of the Russian market - Dmitry Mikhnov. It will be interesting!
Afterword
In this article, my goal was not to teach you how to trade stocks. I just wanted to show that there is nothing complicated about it.
Subscribe to the blog news, here you will find useful materials about the practice of stock trading and investing with analysis of specific situations.
In the last issue of Fortrader magazine we started to look at it. In this article I will try to show practically in pictures, How does stock trading work?, so that it is easier for you to navigate the trading terminal, and you do not make the mistakes that I wrote about earlier.
So, you have done an analysis of the securities and decided to purchase them. What to do next?
Stock trading. We check “Orders”, “Stop orders”, “Transactions” and “Portfolio”
In the Transac trading terminal (we will show the trading process using its example), we need to carry out a number of actions that will not only allow us to complete the intended transaction, but also protect it from technical flaws.
For our example, I decided to buy shares of Severstal. To do this, I did technical and fundamental analysis of the securities. I already have some shares in my portfolio, but their share is less than 5%, and I would like to bring the volume closer to this value or even a little more. What should I do?
- Point 1. I find in my terminal 4 most important tables “Orders”, “Stop orders”, “Transactions” and “Portfolio”.
- Point 2. I check to see if there is money in my briefcase to buy.
- Point 3. I’m checking to see if I’ve already submitted bids for the purchase of Severstal.
Table of "Requests"(see Fig. 1) says that in my portfolio there is an order to purchase Gazprom Neft, InterRAO and Severstal. Does this mean that we need to abandon the deal with Severstal? No! I want to buy the stock right now, and let the existing order remain to add to the position up to 10% if the stock falls.
Stop orders table informs me that I already have a loss limiter () in case, after the purchase, Severstal shares begin to fall. The number of securities in the stop loss is indicated as “100% of the position”, this means that the trading terminal will sell, if an unacceptable risk for me is reached, all the Severstal shares that will be in the portfolio at that time.
Portfolio table says that I have about 128,000 rubles in available funds (field “Current position”). The system will let me spend it on Severstal. But you need to remember that there are three more applications submitted and either release the funds or check the “Use loan” checkbox. In some systems, credit is given automatically - be careful about this to avoid exceeding your desired position size.
In the "Transactions" table no information. This means that I didn’t do them today. Most trading terminals only remember information about your transactions for one day, so keep a diary to record your transactions.
If you, like me, use or plan to use the Transac trading terminal, pay attention to what fields I have in four tables. This is the most important information needed for trading.
We look at the levels of supply and demand
- Point 4. Let's take a look at the “Dom of Quotes”.
It’s more convenient for me to do it from the chart, but I definitely need to check the current position of demand and supply in the “Quotes” table (in stock exchange slang in the “Dom of Quotes”).
In the “Dom of Quotes” we find the “Sell” field, closest to the center. Using it, we can find out what is the best offer for sale right now. If everything suits us, then we can buy securities at the market. If not, then we place a limited or conditional order so that it awaits the security at the level we need.
Limited order stands until the end of the trading session, validity period conditional application we exhibit ourselves.
We buy securities at market prices
- Point 5. We buy securities on the market.
For simplicity and in order to see the movement of the account, we will buy securities at the current market price. To do this, click on the price on the chart and fill out the application. I want to buy one lot of Severstal shares on the market.
- A lot is the minimum number of shares that can be bought or sold.
- The price in the “Book of Quotes” is displayed per share, and we trade in lots.
Please note that the final price of the transaction may be higher or lower than the one that you see as the best in the book of quotes at the time of purchasing the securities. Therefore, consider the supply volume and the nearest offer prices, not just the best one.
Latest checks and notes in the diary
- Point 6. We are checking the application.
Many trading terminals will ask you to check your application. Don't neglect this feature.
- Point 7. We check the result in the portfolio.
In the “Application” table we see the status of our application – “Completed”. The mark “Executed” means that the transaction has been completed. We look at the final price in the “Transactions” table and write it down in the diary.
I also increased the number of papers in the “Portfolio” table. As I wanted, the position size became just over 5%.
Typically, after making a trade or when I place a limit order, I place a stop loss. But as I explained earlier, this action is not required for such an account.
As you can see, technically trading in the stock market is not difficult, but it requires some care at first to avoid making annoying mistakes. If you still have unclear points about the trading process, I will be glad to answer your questions.
Trading shares involves certain rules. These are the trading rules you should follow because they turn a game that seems unpredictable and constantly changing into a job that is very predictable and can bring you profits every week.
There is so much misinformation and outright lies about stock trading on the internet these days that when I meet people taking their first steps into trading who follow this advice, I get nervous.
If this is you, congratulations! Congratulations on cutting through a lot of unnecessary information, and trusting yourself enough to follow generational wealth with a trading strategy that promises you real profit potential (not the 8-10% per year that many financial advisors tell you to aim for). ).
During my time working in the stock market, I learned several things, and I will share these lessons with you in this material.
Use them to reduce your trading learning curve and the loss of your potential.
TIP #1. TAKE OFF YOUR PINK GLASSES
Stock trading promoters are ready to quickly sell you stories about companies that are ready to disrupt and change the world with their products.
Is this the only problem? These stories are full of nonsense.
99% of companies that trade penny stocks ultimately fail, and the chances of you getting into the 1% that do well over the long term are very slim.
So stop believing everything you hear and face the realities of day trading stocks. Some company shares may be worth little, but that doesn't mean you can't use them to make a profit.
TIP #2. ADJUST YOUR PROFIT EXPECTATIONS
Another type of deception you'll hear from stock trading promoters has to do with how quickly your earnings can grow. Yes, it's possible that penny stocks will go from $1 to $10 a share, and it's possible that you'll double or even triple your money in one go.
But do you know how much I'm trying to make on a deal like this? Only $0.50-$0.75 per share.
Of course, I'm happy if I make a little more, but by keeping trade sizes small - opening and closing positions when I know the numbers are correct - I protect myself from the catastrophe of risk and major losses that many traders suffer.
If you're constantly chasing big wins, you'll force deals that aren't there. And these are the types of mistakes that will take you out of the game before you have a chance.
TIP #3. RESPECT THE RISK
Part of the reason I keep my gains and my losses low is because I respect risk.
Many students know that I quickly close a position by “taking profits” or “stopping losses,” but this is normal for me.
A stock market you think is going up can crash in a matter of minutes. A market in which you are confident that a short trade is correct can change course in the blink of an eye.
Make sure you never allocate too much of your investment portfolio to each individual trade (the % of the amount is different for everyone, depending on what you trust more) and make sure that the position you open is not so large to influence stock price behavior. Always look for good liquidity - ideally, at least several hundred thousand shares bought and sold daily - an acceptable trading volume. This way, you will be confident that you can enter and exit the market when you need to, when you want.
TIP #4. KEEP A TRADING JOURNAL
As a new trader, the best thing you can do for yourself is to keep a trading journal that covers everything you do in the market, the size of the positions you take, whether you make a profit or suffer a loss on a trade. A diary like this will tell you a lot about trading and about yourself, and it is an invaluable resource that you can use if you want to become a consistently profitable trader.
Better traders act methodically. They don't trade on a whim - they carefully study their past actions and use that experience to make their future trades better... Both of my first students who achieved the highest results in trading have a lot of spreadsheets!
Knowing about your past trades can be incredibly helpful when it comes to improving your stock day trading abilities. And if you want to benefit from this, you must track them from the very beginning.
Either way, make a commitment to maintain and update your trading journal every time you trade the stock market.
TIP #5. TAKE CARE OF YOURSELF
Many traders get so deep into trading on the stock exchange and learning how to trade that they forget about their health.
No need to do that!
You really have nothing in this world if you don't have health!
And when you're watching stock charts all day and researching all night, it's pretty hard to remember to wake up, cook a healthy meal, and do some exercise.
But guys, this is very important. You will be a better trader if you are healthy. You can stay in this field longer if you take care of yourself.
Break bad habits now. Don't wait to make your health a priority - focus on it now when you're just starting out as a trader so that it will support you throughout your career.
TIP #6. INVEST IN YOUR EDUCATION
Many traders are cocky when they first start trading on the stock market. They act as if they know everything there is to know about stock trading.
Of course, many successful traders have gone a long way, learning a lot about trading, before achieving success on the stock exchange.
That's why I make education a big priority, and I encourage you to do the same. Find people who have achieved everything you want to achieve in your life and learn everything you can from them to become an even stronger and better informed trader.
However, only 5-10% of traders have stable profits. Ignore what “dubious” traders say in chat rooms, online forums and “trading social networks”.
Of course, 99% of traders will tell you that they make money - especially if they are trying to sell you something.
Your time is valuable enough and the amount of money you can spend on information products is quite limited to work with someone who won't be 100% honest with you.
Vladimir Zhibrov, NYSE Academy
What trading platforms are used to trade the stock market? Where can I get training in currency trading on the stock exchange? How to use trading robots for trading on the stock exchange?
USA, 1941. An eleven-year-old teenager, having asked his sister for money, buys three shares of the Cities Service company on the stock exchange at 38 dollars and 25 cents each. Several days pass. The stock price rises to 40$ . A young speculator sells securities and makes money 5,25$ . He is happy, proud of himself: the first money he earned!
It took Cities Service shares less than a week to soar to 202$ . If you had waited a little, the profit would have been almost 500$ ! But the money is lost. The exchange taught his first lesson, which the boy will remember for the rest of his life.
2010 The richest man gives away half of his wealth - $37 billion to charitable foundations. The most generous act of charity in history. The eleven-year-old teenager turned into an already middle-aged 78-year-old man. Novice investor - in richest man in the world.
This man's name is Warren Buffett. Lives in Omaha, in a small house bought in 1957, drinks Coca-Cola, plays golf with Bill Gates. And it still counts the greatest investor of our time.
Dear readers, Alexey Morozov, an expert on trading in financial markets, is in touch. Today we will talk about trading on the stock exchange. You can’t talk about potatoes and not talk about tubers; you can’t talk about securities and not talk about Buffett, don’t blame me.
Securities are sold on the stock exchange- stocks, bonds and other varieties, which I will definitely talk about below. In terms of “age,” this market segment is located in the middle between the commodity and raw materials exchange and the foreign exchange market.
The easiest way to identify the features of the stock exchange is to compare it with the foreign exchange market. We talked about the latter in detail in the material “ "- read it.
The securities market is working not 24/7, trading is not carried out at night. Brokers also rest on weekends and international holidays. By the way, if you don’t know who this is, take a look at the material “ ».
Any financial instrument has its own characteristics of price movement. Stocks sometimes rise and fall for thousands of dollars in a week. What about the currency? It took the dollar a year and a half to rise from 35 rubles up to 80. Euro in March 2014 cost 1,39$ , in March 2015 fell only to 1,05$ .
So there is no and cannot be a multiple increase in prices on the foreign exchange market, but on the stock market, please. Read about the key reasons for sharp price movements in the article “ ».
In Forex, you have to pay a broker to open a trade. spread– once. When speculating in securities, it is paid commission– both when opening and closing a position.
Have you ever seen a building with the words “Forex Exchange” written on it? No? And you won't see it. Because he doesn't exist. Forex exists only in the Internet space. But stock exchange localized– there are “buildings” in New York, Sydney, Tokyo, Frankfurt, etc.
Larger capital is needed to trade securities than for a successful start in currency trading. Especially if you enter the stock market of the USA and Europe.
Example
The dollar now costs approximately 60 rubles. Magnit promotion – 9500 rub.. Among the securities of Russian companies, there are, of course, cheaper instruments, for example, Gazprom shares - 125 rub., Rosneft – 318 rub., MTS – 235 RUR.
Facebook is trading today at 160$ , Microsoft – 72$ , Twitter – 19,64$ . A share of Berkshire Hathaway, Warren Buffett's company, is worth 256 000$.
Let us systematize our ideas about the differences between the stock and foreign exchange markets in the table.
Differences between the stock and foreign exchange market:
Let's take a closer look at stock market instruments.
2. What is traded on the stock exchange - 4 main instruments
Economists classify the financial market in different ways. Some people single out only the stock segment, others split it into the stock market and the futures segment.
To say that securities are traded on the stock market is correct, but not entirely accurate, because securities are divided into several types. Let's highlight the main ones.
Instrument 1. Shares
Typically, trading on stock exchanges means stock speculation. Let's give a definition.
Promotion– a security, by purchasing which, the investor contributes his share of funds to the total capital of the company. Promotion gives the investor the right to receive part of the profit of the joint-stock company, commensurate with the share of his investments.
Purchasing shares allows the investor to influence the development of the company by voting on the Board of Directors. The strength of an investor's vote is proportional to the share of his investment in the total capital of the company.
Shares are among the highly volatile instruments, because they can change dramatically in price in a short time. An example is the Cities Service stock mentioned at the beginning of the article, purchased by Warren Buffett.
The portion of a company's profit that a shareholder receives is called dividend. After a dividend is paid, a stock usually loses its value.
Previously, the loss in value due to the payment of a dividend was clearly visible on the charts - a large drop in prices or even a price gap. However, today the share price fluctuates during the day several times higher than the dividends, so the loss in value is insignificant.
Instrument 2. Bonds
Bonds are less popular as a means of increasing capital. They are often used as a reliable investment option with minimal risk.
Bond- this is a security obliging one of the parties to give the other party a certain amount of money previously borrowed, with interest.
If we buy a stock, we don’t know how much its price will rise to., but if fundamental and technical analysis foretell growth, then there is a prospect of making good money.
When buying a bond, the maximum possible profit is known in advance. Nobody likes high-interest loans, so profits are usually small.
However, bonds are also subject to price fluctuations. Default in the country, bankruptcy of a company or other negative situations call into question the solvency of the debtor.
He will most likely return the money, but with a delay. How long the delay will last is unknown.
If the creditor needs to get his investment back at any cost, it is easier for him sell the bond for the investment amount or grab a small portion of the interest.
If the seller thinks that “everything is bad, the business has burned out,” the buyer does not necessarily think the same thing. If the buyer, due to insider or other information, is confident in the debtor’s solvency, he will be happy to buy the bond.
Therefore, prices for this financial instrument fluctuate, albeit slightly. Let me note again, bond is a low-volatility instrument.
Tool 3. Forwards
Let's look at it with an example. I'm launching a large-scale production of sweets and I need sugar. The price of sugar fluctuates, but you need to prepare a financial plan, decide on the price of sweets, etc. This means you need to agree with the manufacturer on the supply of sugar at a predetermined price.
Forward is an agreement under which one party undertakes to supply the other party with a product at a predetermined price at a certain point in the future.
The forward is signed, after some time I get the required amount of sugar and make sweets.
The price will likely change upon receipt of the item. If sugar, when I receive it, increases in price, I nothing prevents you from selling it and making money. However, the goods received are rarely resold, otherwise the business will stop.
Instrument 4. Futures
There are futures supply And settlement, that is non-delivery. On the stock exchange they trade settlement money. The point is that there is no actual delivery of anything.
If I buy a forward and forget to sell it, I’ll have to stuff tons of sugar into my apartment. If I don’t sell futures, nothing will happen.
At the exchange, the broker will calculate the difference between the price of the commodity specified in the futures and its market value at the time of redemption. I will either make money or lose money.
That is futures allow you to make money on price changes. Such a transaction is concluded for speculative purposes only.
If you don’t quite understand, watch a short video from the licensed company Otkritie Broker.
Speculators calmly trade futures contracts and make money, while forwards are the path of large companies that operate with real supplies of certain goods.
Futures are issued for a variety of instruments. In addition to raw materials, trading is carried out in securities, currencies, indices, etc.
3. How to start trading on the stock exchange - step-by-step instructions for novice traders
It's easy to start trading anywhere. It is difficult to achieve a stable profit. I recommend that you deal with the securities market only if you plan dedicate your entire life to trading.
Installation " I'll come, I'll earn money, I'll leave" will lead to nothing. You will waste your money and flood your brokers with negative reviews. And you'll waste your time.
Step 1. Study the stock exchange
It all starts with basic training. Master the trading terminal, learn in detail about the different types of financial instruments. Next, go into more detail.
There are many instruments, because the same stocks and bonds fall into a great many varieties. There are even more factors influencing their cost. This again confirms the destructiveness of hopes for quick enrichment.
Fortunately, each of us has unlimited access to information. I recommend that you contact trusted resources, preferably brokers licensed by the Central Bank of the Russian Federation.
You will succeed in the stock market if you start with simple learning
Take a look at the material " ", there we talked about increasing erudition in more detail.
Step 2. Choose a broker
I already wrote in part about choosing an intermediary above. There are many brokers, so do not entrust money to the first one you come across, conduct a strict selection. Evaluate trading conditions, educational programs, and support services.
Foreign brokerage firms operating unofficially in the Russian Federation like to offer traders bonuses. Don't be fooled!
Incentives from good brokers need to be earned - enter into transactions for amounts tens of times greater than the bonus amount.
Step 3. Open an account
When a broker is selected, register and open a trading or training account. Please read the terms of trade carefully. Pay special attention to negative balance protection.
When trading with leverage, nothing prevents a trader from going into the red. I overloaded the deposit, did not close transactions in the evening, and at night, when the stock market is not working, a news event led to a sharp jump in prices. The result is a minus on the account.
The securities market invites speculators to use leverage 1:3 , while in Forex the leverage size sometimes reaches 1:500 or even 1:1000 . But there is still a risk.
I personally trade, mainly in currencies, with a broker, and on the Standard account I have protection against “minus”. If I lose more money than I invested, I am not obliged to compensate the loss to the broker - according to the rules that are relevant now, while I am writing this article.
Step 4. Decide on a trading platform
If in Forex the platform is almost always the fourth version of MetaTrader, then in the stock market there is a wide range of software. Many brokers create their own trading terminals.
Step 5. Choose a trading strategy
In the article " "I briefly described technical and fundamental analysis. If you choose technical analytics, you will still need to decide on its subtype, because there are indicators, patterns, candles, waves, etc.
Trader Alexander Volverin, while still a teacher at , said the following about strategies. Any trading system must answer three questions:
- Where to enter the market?
- Where to exit the market?
- What to do if the idea doesn't work?
Take note.
Step 6. Participate in bidding
When basic training has been completed, and one deposit after another is no longer lost on the demo account, but a stable profit is observed, it's time to start real trading.
Deposit an amount of money that you are not afraid of losing. But remember that too small deposits are a hindrance for money management.
The risk in the transaction should not exceed 2% of the total capital. If the amount in the account is small, you will have to refuse many potentially profitable transactions.
4. Where to get training in trading on the stock exchange - review of the TOP 3 companies
All brokerage firms listed below are time-tested. Thousands of traders cooperate with them, so they are unlikely to want to deceive and spoil their reputation.
Please note not only for reliability, but also for accessible training.
1) ALOR Broker
Universal brokerage firm. Traders here speculate in stocks and bonds of the Russian market, securities of American companies, futures and currency pairs. Of the latter, however, only available USD/RUB And EUR/RUB– preference is given to securities.
One or two webinars are held daily, where specific trading strategies are discussed during the day. Eat video recordings of basic course classes.
After registration, traders have access to " Library" - the information is presented in text format, but it is very in-depth - worth reading.
2) GoldMan Capital
There is not much information available about the company on the Internet, I called the hotline to clarify the details.
The firm does not provide brokerage services, but offers in-depth training to beginners.
Basic knowledge about various market segments is taught for free, specific strategies already cost money. When training is completed, novice speculators learn to work on a stock simulator.
GoldManCapital cooperates with various brokerage firms. They execute trading orders from the company’s clients. There are no restrictions on market segments - you get access to absolutely all instruments listed on the exchange.
3) Phoenix
The Phoenix company offers novice traders to undergo paid training. The company has many positive reviews from reputable universities and professional speculators.
Various approaches to the analysis of financial markets and specific strategies for stock trading are considered.
5. How to trade profitably on the stock exchange - 5 useful tips
Take note of them so that squeeze maximum profit out of the market.
That is, create your own robot. Or purchase a ready-made one if you fully understand on what basis he makes decisions.
Why is your own robot important? Because the developer knows when to turn it on and when to turn it off. If you don’t know how to stop high-quality trading machines, you will merge, no matter how much they cost.
Tip 2. Use the services of experienced stock market managers
If you have money, but your trading skills have not yet been developed - use the PAMM account service, transfer money to experienced managers.
A competent approach to choosing a trader and basic diversification will ensure high profitability and reliability of investments.
Practice is also learning. That's why you will constantly learn. Trade, watch price dynamics, compare sharp fluctuations with the influence of fundamental factors - comprehend the complex science of stock trading.
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