IQ Review continues the series of articles “Financial Education” about making money on stocks. Readers have already mastered basic stock market terms and learned how to open their own brokerage account. Go ahead. The topic of today's publication is where to start working on stock market: how to decide how much money to invest in stocks, and what trading strategy to choose for a newcomer to the stock market.

How much should I start investing in stocks?

So you've just opened your first brokerage account and are about to deposit money into it. But you haven’t decided how much money to put in yet. The first question you should ask yourself is how much should you start trading stocks with?

To answer this, you need to estimate the desired potential outcome and relate it to overhead costs. Adequate expectations - a profitability that is 1.5-2 times higher than what a bank deposit protected by the Deposit Insurance Agency could bring (funds in brokerage accounts are not subject to the law on deposit insurance; the DIA will not return anything to you in the event of a loss). The expected higher return comes at a cost in the form of risks. With today's high stakes By bank deposits, you can set the expected return on investment in shares at the level of 25% per annum.

Part of your income will be “eaten up” by the brokerage and depository commission, and part will be taken by the state in the form of taxes. Since 2015, a single tax rate has been applied to profits from trading shares and income from dividends. In other words: you will pay 13% on the difference from buying and selling. From dividends received - also 13% . These are all taxes that the state takes for itself; no others are required to be paid. If there is no income, no tax is paid. The broker withholds taxes automatically in most cases; you do not need to do anything special.

The broker also wants to eat

In addition to taxes on shares, there is a brokerage commission and a fee for the work of the depository (monthly subscription fee, or for calculating dividends, for example). You will find it out from your tariff plan. Therefore, “gross income” must be higher than the required 25%. We can safely pledge 30%.

We've sorted out the relative profitability. The next interesting point is the absolute amount of profit. From practice, we can say that, having earned 30 or even 50 percent per annum on shares, you will not be satisfied if it is only 5-10 thousand rubles. Indeed, so many nerves for 500 rubles a month - is the game really worth the trouble? Besides, tariff plan broker may contain an adjustment to the minimum commission amount for one trading operation, which will negate income from small transactions.

We believe that the optimal starting amount for 2015 should not be lower than 150 thousand rubles . This is not too little - enough to feel the profit. With a profit of 10% of this amount at the end of the year, you can buy yourself good clothes. On the other hand, this is not too much, but you do not risk losing capital that you have earned with great difficulty over your entire life. We categorically do not recommend immediately depositing amounts of a million rubles or more into your account. Losing even a small part (as a percentage) of such capital will discourage you from investing for a long time.

Oleg, entrepreneur:

“Three years ago, I invested a million rubles in blue chip stocks. The money was not the last, but the amount was significant for me. Every day I watched the changes in quotes as if spellbound, and was nervous when the stock market fell by 3%. In general, it is somewhat addictive. A year later, I withdrew the money, earning 150 thousand rubles. At the same time, I saved in dollars, but had to invest in rubles, and the dollar grew approximately the same during the same period. It seems like I didn’t earn anything, it turns out.

It was very disappointing that I sold Aeroflot shares the day before the strong growth began, and held them for six months. I don’t want to invest more, it distracts me greatly from work, and I’m too old to be so nervous.”

Before investing in stocks

We figured out that first you need to invest about 150 thousand. Now it remains to decide what to do with it. To do this, you need to formulate a trading strategy. This cannot be done without knowing the basic concepts. So you'll have to read another boring introduction to terms.

Internet trading - a set of actions for buying and selling shares on the stock exchange in order to profit from exchange rate differences from a home computer through a special program (trading terminal).

Types of trading by position holding period:

• Scalping or pipsing - an attempt to catch the slightest changes in the stock price by one minimum size quote movements (tick or pip). Performed using a specially written (independently or custom-made by a programmer) trading program, acting according to a specific algorithm - otherwise it is called algorithmic trading. Example: stock price is 100 rubles. You bought it for 99.99 rubles and put it up for sale at 100.01. The minimum available difference between the purchase and sale prices on which such earnings are based is called spread. Since you can’t earn anything from one tick, this type of trading is carried out on the basis of constant repetition of operations and refers to high frequency trading .
• Intraday— an attempt to make money on changes in the stock price within a day. For example, you bought shares at 100.08 rubles in the morning, and by the evening they cost 100.77 rubles per share. You sell and “make money”. For one trading day minus commission, 0.5% of the account was earned. If you repeat the operation every trading day, you can earn 100% per annum and much more. The problem is that it is impossible to guess the direction of the stock price every day. And with a 50/50 chance of guessing, the broker’s commission is constant and works against you.
• Short-term trading — an attempt to catch 3-5% of the exchange rate change. Typically a time period from a day to a month is used. If the exchange rate quickly and confidently goes against you, a loss is recorded as a “money out”.
• Medium-term trading — an attempt to catch a significant movement in the stock price — from 10%. This may take weeks or even months. Small fluctuations in the rate against your position, as a rule, are ignored “to the bitter end.”
• Long-term investing — buying shares without the goal of selling them for at least six months, and at most, with the goal of leaving them as an inheritance. Long-term investments In most cases, stocks involve the receipt of dividends. Dividends can only be received by being on the list of shareholders on a certain day of the year - on day of closing of the register of shareholders .

In addition, long-term trading differs from all other types of stock trading. An extremely important point: investors only play long!

Long- buying shares with the aim of selling them at a higher price in the future.

Short- artificial financial transaction. Selling shares borrowed from a broker with the intention of purchasing them at a lower price in the future.

Our articles are designed for beginners on the stock exchange and are built on the principle of “from simple to complex.” Therefore, if you do not really understand the above, it’s not scary. In upcoming issues “ Financial educational program” we will ONLY talk about long-term investing in stocks.

Long-term investments in stocks and types of investment analysis

A kopeck saves the ruble

We would like to draw your attention to the fact that in order for a beginner to start making money on the stock exchange, he must first master the basics. The base is long-term investments in shares. To invest successfully, you need to develop your own investment strategy. The strategy should be based on the analysis performed. There are 2 types of trading investment analysis- technical and fundamental.

Technical analysis — analysis of the stock price movement chart with the assumption that all other factors are already included in the price.

Fundamental Analysis — analysis of recent economic and financial statistics within the company, in the industry and on the market as a whole in order to make an assumption about where the price will go in the future.

Technical analysis of stocks is an extremely controversial thing, we will talk about it in a separate article. Basic view analysis for the correct formation of an understanding of the stock market for beginners should be fundamental. Long-term investments in stocks should be formed on the basis of fundamental analysis.

Thus, three main conclusions we get :

• It costs 150 thousand rubles to start investing in shares.
• You need to learn how to invest money in long term is a basic approach that will allow you to painlessly master others when the time comes.
• In the initial selection of stocks, it is worth relying on fundamental analysis - that is, on indicators economic statistics company, and not on the price chart.

Initially, the editors planned to look at how to choose stocks in this part of the series. But the material turned out to be too long, so we will talk about the technical tricks of using fundamental analysis in the next part. Stay tuned.

In the West in all developed countries Children are taught about investing in stocks at school, instilling financial literacy and talking about the structure of stock markets. In our country, this practice is not used, as a result of which most citizens, in the old fashioned way, rely on themselves at best, and on the government at worst. As a result of this, pensioners are often left without proper means of subsistence, whereas if they had started investing in securities in advance or trading them on the stock exchange, then there would not have been such problems. In this regard, we will try below to briefly outline what the work of a trader or investor on the stock market of Russia, Europe and the USA is like.

Let's start with basic concepts to lay the foundation for knowledge about how to make money. At the same time, it is immediately worth noting that working with securities is far from what Forex offers, however, the mechanisms of operation of both of these structures are similar in general concepts. See also - . If you study the statistics, there are many stories of dizzying success and high-profile failures both on Forex and on the stock exchanges, so when choosing, you should understand that working on the stock exchange itself does not guarantee success. But still, the conditions here are more fair in comparison with Forex, especially when it comes to working with big money.

Basic Concepts

The stock market is an organized system of interaction between buyers and sellers valuable papers. At the same time, there is a primary and secondary stock market. At the first stage, as the name suggests, securities are placed that are just beginning to be traded on the stock exchange, and the securities enter the secondary market after they begin to be resold.

Not only securities, but also other financial instruments are traded on the stock exchange. The operation of stock exchanges is aimed at ensuring the movement of capital between individual entities. The value of the company's shares, and, consequently, their capitalization, is determined here, which is important for both investors and traders to understand.

Who trades on the stock exchange

For those who are just interested in how work happens on the stock market, and who are starting to learn the basic material, you need to name the market participants:

• issuers are called legal entities who act on behalf of the state. Their task is to raise funds through the launch of securities into circulation and the fulfillment of obligations under them;
• investors are individuals and legal entities involved in the purchase/sale of securities for various purposes;
• Professional participants are individuals and legal entities that have received the right to operate on the stock market at the legislative level. This category of persons includes dealers, brokers and others.

Types of securities

As already mentioned, not only shares are traded on the stock exchange, but also other securities and other financial instruments. To work professionally as a trader on the stock market, you need to know the main types of securities.

In the role of securities can act as a separate financial document, and conventional electronic designation. In both cases, ownership of this instrument is accompanied by a guarantee property law for the owner in relation to the person who issued the security. These types of securities are traded on stock exchanges.

1. Shares are a share in a company that gives the right to expect to receive a profit from the results economic activity in the form of dividends. Owning shares also gives you the right to manage the company to a certain extent. The same company can issue two types of shares - ordinary and preferred. The difference between them is that holders of preferred securities receive fixed dividends, but do not have the right to participate in shareholder meetings and influence decisions on the company's work.
2. Bonds are a type of debt with a fixed return. To explain it in a simple way, when buying a bond, it new owner lends money to the government or company that issued it.
3. Derivatives, also called derivative securities, provide the right to buy/sell shares, bonds, and commodities under certain pre-agreed conditions. The role of derivatives is futures contracts for various assets, options, etc.

To determine the global trend for securities of a certain stock exchange, stock indices are used. For example, to work on the US stock market, you need to focus on the S&P500, Dow Jones. For shares of German companies, the reference point is the DAX, for Russian ones the MICEX index (MICEX), for the London Stock Exchange the guide is the FTSE100, and so on.

How to make money on the stock exchange

In the classic sense, working in the stock market is nothing more than investing for the long term. We are talking about deposits for time periods of a year or longer. This approach has a number of advantages, and to evaluate the main ones, it is enough to look at the behavior of stock or industry indices. By investing for a long period of time, you can accumulate a lot of money, which is difficult for those who prefer to work during the day.

When starting to work on the stock exchange, you should become familiar with diversification, that is, with the distribution of funds between individual shares. This must be done in order to protect yourself from possible troubles if suddenly one or more securities begin to behave in an unpredictable manner.

By wisely using diversification and investing for the long term, an investor allows himself to smooth out market fluctuations, limiting their negative impact, which helps to significantly reduce risks and increase profit potential. As a rule, margin trading is not used when investing, that is, they do not involve borrowed funds and work exclusively at their own expense.

When making long-term investment decisions, whether buying or selling a stock, it is important to rely on fundamental analysis methods. However, technical analysis is also a significant help, since it helps determine the most favorable moment to enter or exit a position.

IN Lately Short-term trading with intraday work, when positions are not carried over overnight, has become very popular. This is the most risky trading style, since in order to obtain significant profits you have to take frequent risks, use technical analysis signals that are not always accurate over a short distance, and expose yourself to great psychological stress.

For scalping, margin leverage is required to increase the position size to obtain significant profit figures. Downside there will be increased risks that are extremely important to control and constantly weigh against profit potential.

How to get started

On the technical side, the work of modern investors and speculators in the stock market today is extremely simple, since uninterrupted Internet and functional software guarantee stable communication and accurate execution of orders almost instantly. More difficult to choose optimal strategy, which will suit the psychological type of the trader and will give a sufficient number of accurate and understandable signals. When choosing a strategy, you will have to immediately determine what type of forecasting will be used in your work - based on technical or fundamental analysis.

The use of a fundamental forecasting method is based on knowledge and understanding economic laws affecting the price financial instruments. The application of technical analysis is based on mathematical and graphical patterns. At the same time, no special knowledge is required for successful work, which is why ordinary people without special training can receive stable profits in the stock market.

However, to competently compile a stock portfolio in compliance with the principle of diversification, you will need to take into account many different factors. It’s not enough to just take a training course, of which there are many now, a lot depends on the experience of the trader/investor himself. Therefore, it is extremely important to start work without aiming for large amounts of profit. It is extremely important to work with small volumes at first until you gain confidence in your abilities.

Recently, many sensible books have been written on working in the stock market, so there will be no shortage of information. But theory is theory, so when starting practice, among other things, it is important to regularly work on mistakes, constantly analyzing successful and unsuccessful trades in search of conditions that will help in the future to make more profit on the former and incur fewer losses on the latter. Working with profits in the stock market becomes something completely natural as you gain experience.

Moreover, it is important to immediately develop the right attitude so as not to perceive activity on the stock exchange through the prism of profit and loss. It is much more correct to look at this through the prism of right and wrong actions. As one of the founders of SMB Capital said, you just need to make one good trade, and then another and another. And it doesn’t matter whether each of them closes in profit, since a minus on the right trade is not critical, because in the future profit will be guaranteed! But if you deviate from your rules and recommendations of the strategy, making thoughtless trades, then you shouldn’t rejoice at the profit, since with this approach the account will be drained sooner or later.

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Trading on the stock market is one of the types of earning income on the Internet. There's talk about making money like this large quantities about stories, many of which relate to the aspect that stock trading is a scam. A refutation of this can be the story from the life of a pensioner from Germany named Ingeborga Motz. A woman, trading on the stock exchange, was able to earn a million at the age of 75.

Three categories of newcomers to the market

All people who turned their attention to the stock market can be divided into three groups. The first group includes traders who view the market as a gambling environment. They believe that working on it does not require effort, but at the same time it will not be able to bring a large amount of profit. They often turned their attention to the securities market because of stories from brokers who want to get new clients.

The second category includes people who have knowledge about finance, investments and stock markets. Their decision to try their hand at trading was deliberate and balanced. Such people often lose a certain percentage of their initial capital due to poor training in stock market trading.

The third group are people who take the process of making money seriously. They studied in detail this type work before making your down payment. Most of these people remain potential traders, because during the preliminary market analysis they are frightened by the possible risks of trading, so they decide to stay out of the stock market.

Advantages of trading on the Internet

Online trading has a number of advantages. The most important of them is the opportunity to receive a stable income. Also, these receipts can be officially registered. Like all types of work on the Internet, trading on the stock market does not require any extra effort. A trader can earn money while sitting in his apartment.

Another advantage is mobility. A trader can quickly sell his securities if they begin to fall in value. This is done in order to keep losses to a minimum level.

The stock portfolio is formed at the discretion of the trader. Issuers can be disposed of immediately before they begin to cause significant losses.

Scalping

Scalping is one of the most famous and popular trading strategies in the stock market. It belongs to the speculative category and is used on short time frames. The essence of the strategy is to close the deal as soon as it begins to make a profit. At the end of the last century, the duration of the transaction was several minutes. Nowadays, in order to close it, a trader needs a couple of fractions of a second.

To apply this strategy, the following conditions must be met:

• highly liquid instruments;
• small spread;
• low volatility;
• low commission.

Each transaction brings no more than 20 points of profit. Significant income is provided by opening a large number of transactions. It is very important to find out about the exchange and broker fees before using a scalping trading strategy in the stock market. It is necessary that the level of profit exceeds the amount of fees.

There are three scalping methods: impulse, classic and hybrid. The first type involves the permanent assessment of markets and financial instruments. When trading on the Russian stock market, a trader must monitor the movement of American and European futures, as well as the US dollar and oil. The second method is to determine the difference between supply and demand, which can cause quotes to move. The third type of scalping involves a combination of the two previous methods.

Swing trading

The basic principle of this strategy is to trade stocks in the direction of the long-term trend. However, it is necessary to start trading only when a number of transactions have taken place in the opposite direction.

One of the most reliable options for opening a position is opening on an uptrend after a wave of sales. After a number of purchases occur in a downtrend, it is necessary to open a short position.

Day trading

This is another type of speculative trading strategy in the stock market. It got its name due to the fact that all transactions must be completed within one day without transferring transactions to the next session. Using day trading, a trader can hold financial instruments for a period from several minutes to several hours.

Technical analysis is typical for intraday transactions. Market participants can also use margin trading in order to increase the amount of income received. However, as profitability increases, risk also increases.

Investors

These are stock market participants who prefer to hold financial instruments (as opposed to speculators). They do not take into account the fluctuations that may occur because they believe that over time their patience can pay off.

All investors can be divided into three types: long-term, short-term and medium-term investors. The first to invest their cash in shares of promising companies for a period of twelve months. They use fundamental analysis and take into account the economic and political situation in the state.

Short-term investors hold financial instruments for a couple of weeks. In order to analyze the chart, they use daily and hourly time intervals. Medium-term investors can hold shares for twelve months. They work on daily and weekly timeframes and use both fundamental and technical analysis.

How to start trading

First of all, you need to decide on the minimum amount of funds for trading. You should not immediately deposit a large amount of money, since the sad experience of many traders indicates that the first steps in the stock market most often bring losses.

Then you should be trained in the basic concepts and principles of trading in the stock market. For novice traders, there are a large number of special textbooks that describe the main aspects of working with the market. Before you start trading, you need to become familiar with two concepts: fundamental and technical analysis. The first one studies real factors of a political, economic and psychological nature that can affect the quotes of financial instruments. As for technical analysis, it studies the movement of quotes using charting. Its goal is to predict changes in quotes using mathematical techniques.

The next step is to choose a broker for trading on the stock market, since without his help it is very difficult to gain access to transactions. That is why everyone who wants to make a profit by trading on the stock exchange resorts to the services of intermediaries, who can be not only brokerage companies, but also commercial banks. The main points that should be taken into account when choosing an intermediary are reliability and the amount of commissions required to be paid when making transactions, withdrawing funds and servicing the account.

Next, you need to install a terminal. There are a large number of platforms for trading the stock market. On the intermediary’s website, you need to download a special application that will provide access to the market. Before you start trading, you can undergo training using a demo account. It allows you to fully master the operation of the terminal and create your own strategy, which can be used when trading using real money.

Platform selection

This is one of the most important stages when starting to work in the stock markets. A similar trade can bring different profits to a trader on different platforms. There are four main criteria for choosing a broker:

• convenience;
• functionality;
• availability of access to the exchange;
• amount of commissions and fees.

These characteristics are basic, but not the only ones. Each trader has his own list of platform requirements that he has developed over his trading career.

The best platform according to many specialized publications is Screen Market Systems. It provides a wide range of functions, ensuring high-quality and convenient work.

Rules

Professional traders have developed several rules for trading in the stock market, which must be followed not only in order to make a profit, but also to minimize losses.

The first rule is not to go all-in. A trader should not risk all of his capital. Trading shares on the stock market requires the investor to have the right approach and informed decisions. It is not recommended to trade either with borrowed money or with funds the loss of which would cause big problems for the trader. Quotes can move sharply either down or up. This often causes loss of capital. Especially among newcomers to the market.

The second rule is cutting losses. Every trader must control his greed. It appears in cases where the transaction begins to make a profit. The biggest mistake a trader makes is that he completes an operation before it can earn the maximum profit.

The final rule is to spread the risks. You should not invest all your money in one instrument in pursuit of excess profits. In order to reduce the risk of losing capital, you need to build a portfolio using different securities.

What not to do

Every minute, many new options to earn money appear on the market. It is important to remember that you cannot get all the money. Therefore, it is better to concentrate on one big transaction than to be scattered across many operations that are more likely to cause loss of money than increase it.

You should also not purchase financial instruments whose value is falling in the hope that they will become more expensive. This strategy very rarely gives a positive result. This will cause big losses in the long run.

Stock market or Forex

Trading the stock market is much more difficult than trading Forex. The difference between them is that in the first case, trading is carried out with shares and other securities, and in the case of Forex, currency pairs are financial instruments.

The downside of the stock market is its small currency leverage. This means that traders with small deposits are less likely to successful trading. Forex is a volatile market where you can earn more in a short period of time than in the stock market, which is focused on long-term investments.

Good afternoon dear friends! The author of the blog, Ruslan Miftakhov, is in touch as usual. In today's article I will talk about the stock market for beginners. Beginners can sometimes underestimate how serious everything is here.

Therefore, I want to talk about the principles of working in the stock market, how to start trading correctly so as not to end up at a loss. This topic will be useful not only for beginners, but also for people who already have some knowledge in this area.

The first thing you should start with is to understand the concept and essence of the stock market, as well as its basis.

And so, the stock market, which is also called the securities market, is an important part of everything financial market, since all securities are traded here.

Any active company that strives to achieve further success needs to attract additional financial resources(thanks to bank loan, issue of securities).

All options for obtaining income from securities are associated specifically with the stock market - a place for attracting and redistributing money between companies, economic spheres and securities market participants who form its basis.

Participants in such a market are classified:

• intermarket participants - are engaged in servicing the market (collect necessary information, conduct consultations, compile ratings);
• intramarket participants - engage in activities with securities, and are divided into professionals and non-professionals (issuers of securities, investors).

Professionals have licenses to carry out their activities in the securities market, these include traders who conduct trading at a professional level, and organizations that create infrastructure (brokers, dealers, registrars, depositories, exchanges, clearing companies). Read what clearing is.

What do they trade here, what indices do they use?

The main financial instruments are:

• shares - ordinary and preferred (read the difference between them in);
• bonds (we also discussed their essence in the articles "", "");
• futures - futures contracts that require the mandatory completion of a transaction at previously agreed prices (gas, oil, currencies) within a certain period of time; (read more about futures)
• Options are futures contracts that give the right to buy or sell securities within a specific time frame with a profit. Read on to find out the difference between futures and options.

To assess the global processes that occur in the securities markets, stock indices are used that reflect the price movements of assets that are included in the calculation of a specific index.

To the world's leading stock indices include: S&P500 (USA), FTSE-100 (England), DAX-30 (Germany), CAC-40 (France), Nikkey-225 (Japan), RTS and MICEX Index (Russia) and others.

Options for making money on the stock exchange

Today the number of people employed in this area reaches several million. And this is not surprising, since the stock market provides potential earning opportunities, and there are several of them, and each person chooses the most suitable one specifically for him.

Let's consider each of the existing options:

1. Trading is the most popular way of earning money, which is not limited by anything.

The main goal of a trader is to sell an asset more expensive than the cost, for which he bought it. Transactions can be ultra-short-term, short-term and long-term.

Do you want the most effective trading platform? Then click on the button below, register and make transactions.

The main point is to determine where the price will go up or down and choose the right direction.

Minimum deposit 10$, minimum investment from 1$, withdrawal of funds within 24 hours.

In order to determine when to make a transaction and the dynamics of price changes for an existing asset, traders use various stock market analyzes (fundamental, technical), indicators, risk opportunities (leverage, bearish plays).

It is important to understand that some of the completed transactions will still be unprofitable, and in order to make a profit you need to ensure that the result of profitable transactions exceeds the losses received.

How better trader will develop his own trading system (right choice markets, financial instruments, trading time, testing the created system), the better the result it will have. You should also always be prepared for constant analysis and monitoring of the market, and changes in selected methods.

2. Earn money with trust management in cash.

People who do not have enough time, as well as the necessary knowledge, can transfer their money, investing it in collective investment, to special managers who are professionals in this field (remember, we discussed the topic in detail?), and lead bidding on your own behalf.

This means that the investor, having selected a successful manager based on special ratings, transfers his funds to his separate account, and at the end of a certain period receives a profit (or loss) from the result of his activities, in proportion to the amount of invested funds, minus the remuneration due to the manager.

3. Independent portfolio investing, which involves choosing a portfolio of promising stocks and adding risk-free bonds to it in ideal proportions to get the best result. In this case, the investor knows in advance the percentage of return on his selected assets.

Instructions for beginners to trade on the stock exchange

Starting trading involves going through the following stages:

Choosing a reliable broker through which the trader will communicate with the exchange. When choosing, you should pay attention to the trading conditions it offers, what educational materials it can offer, how transactions are carried out here and how quickly you can withdraw funds from your account.

• FinMax — best broker for beginners;
• Binarium— the best broker according to readers;

Establishment special program to a computer (which is provided by the selected broker) - a terminal that will allow you to access the exchange online and carry out transactions.

Choice trading strategy and training on a trial (demo) account, which will allow you to test your strength and chosen strategy using virtual, not real, money.

Opening a real account (only after you manage to make a profit on a demo account, and, according to the advice of experienced traders, double it!).

Real trading.

Tips for successful and profitable trading:

• correctly develop a trading system (we wrote above what it consists of);
• do not get carried away and do not be greedy, carefully think through transactions, be patient and disciplined;
• manage your losses;
• do not rush to immediately make a big profit;
• do not try to recoup an already closed deal;
• do not use all types of analyzes and graphs at once;
• do not neglect education, and constantly continue learning;
• Don’t deceive yourself and really assess your capabilities.

I hope that this article was useful to you and expanded your knowledge about the securities market and stock trading. I want to wish you good luck!

Best regards, Ruslan Miftakhov

As a rule, the stock market for beginners seems to be a complex and incomprehensible system. There are indeed many subtleties and nuances in it, but any average person can figure it out if they have patience. To get started, you will need to stock up on money (often enough small amount) and devote some time to self-education.

Where to begin?

To successfully start working in the stock market, a beginner will need to go through the following steps:

1. Self-learning. It is necessary to familiarize yourself with the operating principles stock exchanges using reliable sources. It will also be useful to study trading platforms to learn about quotes and other characteristics of financial instruments, master technical analysis of the stock market.
2. Market selection. You can work like domestic market, and in foreign countries. One of the most promising is the American one.
3. Opening an account. A brokerage account can be opened online, through a bank, or through a brokerage firm.
4. Performing trials trading operations to study market mechanisms in practice.
5. Training in working with the media and establishing relationships between events in the economic world and the value of securities.
6. Selecting objects for attachments. You should invest in those companies that seem the most reliable after your own analysis.
7. Purchase a small number of shares (on your own or through a broker) and get started.

How to get basic knowledge?

Each beginner independently chooses learning methods: studying books, communicating on forums, attending seminars. To achieve maximum results, these methods should be combined. Regardless of how the training takes place, it is necessary to master the basics of technical analysis: if a beginner knows technical analysis, he will make much fewer mistakes in the stock market. You also need to study the features of various securities, learn how to work with literature and periodicals.

To acquire initial knowledge, it is useful to attend trainings and seminars, which are often conducted online. This will help you get a general idea of ​​the system. In addition, you can ask a question to the presenter, or ask him to recommend books for further study.

How to learn to trade?

For trading, many have been developed computer programs, so this process is quite simple. However, to fully explore their capabilities, qualified assistance may be required. Sometimes trainings and master classes on mastering such programs are offered by brokers.

To find answers to certain questions, the instructions provided by the programs will be useful, but it will be difficult to fully learn from them. It is much easier to do this with the help of special “training” accounts. RTS, MICEX, etc. have the corresponding instruments.

What to do if you don't have time to study?

For some people, learning happens quite quickly, for others it drags on for many months, but in any case it does not happen instantly. Of course, those who master technical analysis have more possibilities, but at first you can do without special knowledge.

If you need to make investments in the near future, and there is no time to study the intricacies of the market, you can use the trust management service. In this case, a specialized company selects a strategy in accordance with the investor’s goals and implements it. The investor is only required to sign the contract and deposit the agreed amount of money. He will be able to monitor the state of his assets using reports that the company is obliged to provide regularly. Part of the profit from operations will be transferred to the account of the management company.

What is needed to achieve success?

Success is determined by a number of objective and subjective factors.

Objective ones are those that do not depend on a specific investor:

• market size;
• instruments traded on the market;
• brokerage commissions;
• level of information openness;
• level of market infrastructure development;
• threshold for entering the market.

Subjective factors are formed due to the actions performed by the merchant himself. To achieve success, you must meet at least half of them. Factors are presented in descending order of their role in the final result:

• competent risk management;
• correctly formulated strategy;
• development of specific trading plans;
• luck;
• discipline;
• patience;
• the ability to act in accordance with a plan;
• the ability to be present at the right time in the right place.

Not all stock market participants are equally successful. According to statistics, 10% of players own 90% of the capital. For those who strive to become one of them, it is obligatory to study each of the above factors.

First of all, it is necessary to study trade statistics through frequent visits to the market. Professionals, for example, are able to carry out up to twenty transactions daily. This technique helps in finding and eliminating your mistakes and weaknesses.

To improve your results, you can go in two ways:

1. Increase the number of profitable transactions, increasing the ratio of profitable transactions to unprofitable ones while maintaining the same levels of risk and profitability for each transaction. This is easily done thanks to special filters that do not allow transactions with increased risk to pass through.
2. Increase the ratio of average profit to average loss on transactions, i.e. strive for the highest average win and minimum average loss. This method is more suitable for novice investors. To implement it, you need to learn how to properly close positions and manage risks.

How to avoid mistakes?

Often, beginners strive to make quick money and lose their vigilance: they try to predict trends without having serious reasons for this, ignore the behavior of other participants, etc. As practice shows, most novice players make identical mistakes. Below you can familiarize yourself with them, and then the risk of making one of the common mistakes will be significantly reduced.

Lack of a specific goal

Each successful player has his own trading style and convenient time intervals, and based on them, a strategy and trading plans are built. You need to develop your own style: choose trading and analysis tools, determine the acceptable degree of risk, etc.

Lack of an up-to-date trading plan or non-compliance with it

A plan is a tool that allows you to stay on a certain path in a chaotic market. Compliance with it, to a certain extent, protects against dozens of other mistakes. If the plan does not correspond to the market situation, it should be reworked.

Committing groundless actions

Opening, holding and closing a position should be based on a thorough market analysis and resulting assumptions about future price movements. Both action and prolonged stay in the shadows must be justified.

Exceeding acceptable risks

When performing any operation, we must not forget about the normal position size, which is determined by the ratio of funds allocated for opening a position to total amount capital. A signal that one of the positions needs to be reduced is a loss level of 3% or more. On the other hand, too small positions are also unprofitable, because do not bring significant results.

Working without thoughtful exit points

Poor risk management results in an investor opening positions without an initial stop order. However, it is necessary in case the market situation changes for the worse.

Long-term holding of unprofitable instruments

Novice players often miss the optimal moment to close a position, which occurs when approaching the stop price. If the loss is already obvious, then closing the position as quickly as possible will save capital and make money on new transactions. Waiting for new growth in unprofitable securities is not recommended for beginners.

Setting a stop order near current prices

If the exit point is too close to current prices, positions will have to be closed too often. Receiving high profits in such conditions is impossible.

Hasty profit taking

To get good results, you need to let your profits grow, because the goal of trading is to achieve high profits on a relatively small number of transactions.

Working at turning points

You should not take active actions when the market is at the bottom or at the peak: in both cases, it can absorb money without a trace.

Building up a disadvantageous position

Replenishing a losing position is similar to financial pyramid and is contrary to risk management rules.

Incorrect course of action under unfavorable conditions

If the market situation becomes unfavorable, it is necessary first of all to close profitable positions and “save” the profit. Only then should you close unprofitable trades, starting with the riskiest ones.

Holding a dubious position

If the profitability of a transaction is in question, it should be closed as quickly as possible.

Trading immediately after the market opens

The market is extremely volatile during the early morning, midday and afternoon hours. Inexperienced players should not trade at this time.

Using unreliable sources of information

The number of sources should be small, otherwise the merchant will be overloaded with information. When making decisions, you should not rely on gossip and information from unverified sources.

Lack of diary and transaction history

Entering all your transactions into a special register allows you to gain experience, learn from mistakes and highlight your strengths.