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How to trade stocks online

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The question of how to trade stocks on the stock exchange is relevant for beginners who just want to diversify their lives and try something new, as well as experienced investors who have been trading in the stock market for many years. Why is that? Yes, because the stock market is changing in accordance with global trade trends, and therefore it is always impossible to use the same strategy. What brought income yesterday, today, and even more so tomorrow, will not work and bring dividends on shares. And then the most relevant and effective ways of how to correctly trade on the exchange and what are the most effective and popular strategies that successful brokers use are presented.

How and where to trade stocks over the Internet?

To enter the exchange, an ordinary person (and the company) needs to sign an agreement with a broker and open an account with the depository. A broker is a professional participant in the exchange, and only he has the right to make transactions. However, the shares are registered on his clients, and they can make a decision on the sale or purchase, receive dividends or compensation if the company closes.

After you sign the contract, you need to install special software (terminal), obtain data to access the broker service, and then log in.

All this takes time: at least a day you will spend on formalities and a day on the development of new programs and services. And since a contract with a broker is usually signed personally, residents of small cities have to go to megacities to find a reliable broker. It is not surprising that even through the Internet it is not easy for many to start investing.

How to buy stocks yourself?

After all the formalities are followed and the trading software is mastered, you can start buying shares. How to buy stocks online? Everything is simple! In order to start working in the trading terminal, most likely, you will be required to enter a login and password for authorization. These data are provided by the broker at the conclusion of the service contract.

Using the terminal, you can monitor market prices for stocks of various companies, analyze the situation in real time and choose for yourself those securities that, in your opinion, are the most promising. Through the trading terminal you can not only buy, but also sell shares.

How to buy stocks easier?

A couple of years ago, there were no services on the Russian market where you could just buy stocks without going to the broker's office and installing complex software. Now there is such a service - Freedom24.ru. This is a service of the broker Freedom Finance.

Freedom24.ru is identical to a regular online store: it has its own “window”, information about the stocks of each company, a “basket” and round-the-clock online support. The service even canceled the minimum “entry threshold”.

To start trading, just register, fill out a short form, remotely conclude a service contract and confirm your identity by SMS. The whole process will take about 20-30 minutes.

How to make money on stocks on the Internet?

Alas, few understand the real prospects of earning. There are absolutely opposite opinions. Some people think that on stocks, having 10,000 rubles in your pocket, you can earn a car or an apartment for a year - as in the old MMM advertisement. Others are skeptical and believe that this is a waste of money. Neither one nor the other is right.

Yes, history knows examples of thousands of dollars that have become millions, and millions that have turned into thousands. But, as a rule, investments bring more modest returns - 5, 15, even 50-60% per year. Stocks are falling and rising in price, and the investor needs to carefully study the state of affairs in the company, assess the prospects of the market and industry before starting to make money on stocks. A competent investor does not rely on one company - he diversifies his investments, and not only between shares. In “Freedom Finance” they strive to give the basics of investment, which will help both the shareholders themselves and joint-stock companies, and therefore the entire market.

A competent approach and an adequate assessment of prospects are the main success factors on the stock exchange. Freedom24.ru online store is just one of the tools that simplify the path to the role of investor.

What is a stock exchange?

I have been running this blog for over 6 years. All this time I regularly publish reports on the results of my investments. Now the public investment portfolio is more than 1 000 000 rubles.

Especially for readers, I developed the Lazy Investor Course, which showed step by step how to establish order in personal finances and effectively invest your savings in dozens of assets. I recommend that each reader pass at least the first week of training (this is free).

What is the stock exchange? In simple terms, this is a securities market, the circulation (purchase and sale) of which among market participants occurs with the help of an intermediary, which is the exchange. Thus, the exchange is the guarantor of the security of transactions among participants, which can be both individuals and large financial organizations.

In the world there are a large number of stock exchanges. You probably heard the names of the largest of them, such as NYSE (New York Stock Exchange), NASDAQ (American OTC stock market of high-tech companies), Tokyo Stock Exchange, London Stock Exchange (by the way, you can buy TKS bank shares there).

There are about 10 stock exchanges in Russia, but we, as private investors, are only interested in the largest one, the Moscow Exchange, which trades the shares of such large Russian companies as Gazprom, Lukoil, Sberbank, Rostelecom and other monsters of the Russian economy.

The Moscow Exchange was formed on August 1, 2012 as a result of the merger of the largest Russian exchanges MICEX (Moscow Interbank Currency Exchange) and RTS (Nonprofit Partnership for the Development of the RTS Financial Market), which were formed in the 90s. On the Moscow Exchange, you can trade not only stocks, but also precious metals, bonds and even currency.

It is interesting that on the exchange itself you can buy shares of the Moscow Exchange, which are traded like any other. The largest shareholders, which means that the owners of the exchange, are the Central Bank, Sberbank, Vneshekonombank, VTB and other financial institutions. Over the past year, Moscow Exchange (MOEX) shares have shown returns of over 20%.

How to start trading Gazprom shares on the stock exchange?

In order to become a full-fledged participant in the Moscow Exchange and be able to buy shares on the Moscow Exchange, the following points must be fulfilled:

  • Choose a broker to trade
  • Conclude agreements on custody and brokerage services
  • Install stock trading software on your computer
  • Get program access keys from a broker
  • Additional steps for registering a trading account (depends on the broker)

So, in order to buy Gazprom shares (which everyone is so dreaming of), first of all, you need to choose a broker through whom you will work on the stock exchange.

How to choose a broker to trade stocks on the stock exchange?

Which broker to choose for stock trading is one of the most frequently asked questions about the fund. As in forex, in order to decide on a broker you need to thoroughly google reviews, compare trading conditions, calculate the regional features of opening a new trading account and much more.

When I chose a broker to open a trading account, I focused on the largest (by turnover) and famous players. I do not recommend choosing a broker solely from the calculation of the minimum commission for trading operations, especially since the difference between large brokers is not significant.

Here is a list of major brokers that provide access to the Moscow Stock Exchange, which should be noted:

Of course, there are much more large brokers, but when choosing a broker, the rest were eliminated by various filters (reviews, reliability coefficient, region. Dependence).

Ultimately, the recommendation of my colleague, who has been successfully trading through VTB24 for many years, played a decisive role in choosing a broker. Having signed a brokerage service agreement with VTB24, I have never regretted it, although there were still a few points. As in any state institution in Russia, and VTB is 60% owned by the state, there is a low qualification of service personnel and confusion with the documentation.

I will not go into details, I can only say that in order to start fully trading on the stock exchange, I needed to visit the bank 3 times, the whole procedure of registering my account took about a week. Therefore, if you choose a broker VTB24, then be prepared to spend time on it. I have no complaints against VTB24 as a broker provider.

Just in case, I will voice the commission on my type of account “Investor Standard”. For the operation, the bank takes 0.0413% of the transaction volume. Depository service 150 rubles per month. If there has not been a single transaction in a month, no depositary service fee will be charged.

In 2016, I opened an individual investment account with Finam (see my reviews of Finam). Unlike VTB, a brokerage account at Finam can be opened remotely without visiting the office, simply by filling out the registration form.

How to buy Gazprom shares to a private person via the Internet?

Suppose you have decided on a broker, got access to a trading account and replenished it. How, finally, how to acquire Gazprom shares to a private person via the Internet?

Everything is somewhat more complicated than when making transactions on Forex, but in general the principle is the same. It is necessary to place an application for purchase (or sale) in the so-called glass of applications. The interface of the order glass depends on which trading platform you use. The most common and convenient, in my opinion, is the Quik program. According to Quick, there are a sufficient number of training materials on the Internet, so its development is a matter of time. For those who do not want to go into the technical details of investing, there is a simple decision to purchase shares using the button below (through the Finam broker), while you will still be the full owner of the shares.

When trading stocks on the stock exchange, it is important to remember the same golden rules of the investor and not neglect the diversification of the investment portfolio. If you are just starting to take the first steps in trading, I do not recommend using leverage. In addition to the fact that a commission will be charged for its use, usually in the amount of the refinancing rate (about 14% per annum), it will be more difficult for you to analyze the performance of your trading system. By the way, if you open a deal to sell shares (sell), but you don’t have them, then in this case the same refinancing rate will be charged.

The topic of equity investments is quite voluminous, I will try to update the section as new questions arise. In the meantime, we listen to Slepakov and buy shares.

How to start trading on the exchange

Before presenting the most effective ways of trading on the exchange, you need to understand where to start the trade itself so as not to lose and at least stay afloat for some time. To do this, it is imperative to conduct good preparatory work.

Such a preparatory phase consists of the following procedures:

  • Find money to trade. Oddly enough, but the most important thing is the presence of initial capital. It is important to remember: investing the last money in stocks is not necessary, since there is always a risk of losing. You only need to invest resources that can be easily separated from your family budget or business,
  • Tune in to the fact that at the beginning of trading You can lose your investment. It’s necessary, in other words, to psychologically adjust for losses, then it will be easier,
  • You should never start working on any exchange from a real account, especially if there is no financial education. Although with the presence of specialized education and the availability of experience, it is difficult to predict how the market will behave. It is best to use special demo accounts that are presented to all newcomers to most well-known exchanges. A demo account guarantees zero user loss and the ability to understand the algorithm of the system. Only by playing on the stock exchange and making some money, you can move on to the next stage - real trading,
  • Get basic knowledge of stock trading. On the one hand, many novice traders believe that it is better to learn in practice, that is, to fill your own cones. But, without a theoretical basis, it is very difficult to understand the principle of the stock market. Therefore, you need to read a lot of relevant and modern literature,
  • Choose a stock broker, which will become a kind of friend in trading and will help in the first steps of the work. You can read reviews about brokers that are in your country. Many brokers seem to work and allow you to earn money, but as a result, they simply do not withdraw the money earned to the owner’s accounts and, thus, profit from their users. Also read the rating information for such companies, their stability, etc.

Thus, it turns out that it’s almost impossible to just start trading on the exchange. Rather, you can trade, but getting rich experience, skills and profits is almost impossible. Another thing is that it is necessary to calmly accept the fact that trading in stocks is a risky type of activity associated with risks of loss making. Therefore, as in any business, perseverance, aspiration, skills and, let’s not hide, a certain “sensation” is important, which allows you to invest in those assets that are not in demand, but in the long term bring a certain margin rate.

Effective stock market strategies

The stock market has been around for a long time. Therefore, there are well-known methods and methods that are used by almost all traders. Another thing is that in each case it is necessary to use different methods and different strategies. But then a list of the most effective strategies that will achieve success in stock trading will be presented.

Effective trading strategies on the exchange:

  1. Lower investment.This means that in a permanent state of decreasing profit, all investors sell shares, and then, when the value of these shares decreases, they buy them and again increase the market price of the shares. A fairly popular method, when a certain artificial panic is created for a specific block of shares, and then a stable condition is established on the market and the price of shares rises significantly.
  2. Long-term strategy for investing in company assets. An investor invests in assets that currently do not have high value, but presumably have a growth prospect. In this case, you can only get income in a very long term, since assets increase value only after years, decades.

Otherwise, you can not understand and not guess, lose, because this indicator is not always growing. And if it grows, it is only due to the inflation index, no more.

  • Investing with an increase in the value of the company. A fairly popular way among those investors who want to make money in the short term. But it is also necessary to be sure that the company has growth prospects and the current value of shares is not marginal, and will increase soon. The peculiarity of such investments is that, as a rule, the price of such shares is high and is suitable for experienced and wealthy investors.
  • Investor or trader

    Considering the issue of trading shares on the stock exchange, it should be said that there are those who simply trade in securities and earn their minimum by reselling shares, and there are those who invest in shares and earn on them only by increasing the nominal value of the company. So the first market entities are called merchants. And the second - investors. The former are aimed exclusively at resale, while the others allow the possibility of not only sales, but also long-term preservation of assets.

    Classification of investors in the stock market:

    • Short-term investors. They are characterized by the fact that they buy securities and other assets on the exchange only for a few days or weeks. Their task is to sell assets at a price higher than the acquisition. Such assets do not remain in the ownership of the entity,
    • Medium-term investors. Such investors are characterized by the fact that they buy stocks for up to one year. Then the shares are sold,
    • Long-term investors. Consequently, they buy assets and securities for a period of more than 1 year. And then, based on the analysis, they decide on whether or not to sell the shares.

    Depending on what category the investor relates to, he also uses different methods of analysis. Например, краткосрочные инвесторы работают исключительно с техническим заданием, а вот уже среднесрочные и долгосрочные инвесторы работаю не только с техническими параметрами активов, но и уже с основами фундаментального анализа.
    Но не только инвесторы имеют свою классификацию. Торговцы ценными бумагами и активами также имеют свою классификацию.

    Классификация торговцев на фондовом рынке:

    1. Дей-трейдеры. Работают оперативно, даже молниеносно. Зарабатывают на минутных колебаниях цен.
    2. Свинг-трейдеры. Работают на основе колебания цен на ценные бумаги. As a rule, they acquire securities, hold them in their portfolio for several days or weeks, and then, at a favorable time, sell them,
    3. Scalpers. The so-called speculators, who immediately, buying assets, put them up for sale and earn solely on the basis of the established allowance.

    The only good news is that each market player makes an independent decision about who he wants to be at the moment. The same market player can be a long-term investor in one asset, and a swing trader in others. There are no restrictions.

    What to choose and how long it takes

    And here the question arises, which is better to choose: long-term investment or short-term trading?We note right away that it is the long-term investment that has the least risks, which sooner or later, if it does not make a profit, then at least pay back the investments taking into account the price index. Long-term trade and investment can be predicted and they are subject to less market fluctuations.
    If you consider yourself one who is willing to take risks, and the invested amount is not something important and critical for you, then you can try short-term trading. But here it is important to accept the fact: that the risks are high, at the initial stage the losses will be large, and the profit may not be received at all. In case of short-term investment, it is always necessary to have a certain stock of funds that will allow replenishing stocks of securities daily.
    Another issue that most potential investors care about: how much time will be spent on the trading process?The question is relevant, because many successful investors are people working on trading platforms additionally from their main place of work, therefore they cannot devote all the time to this process.
    And here, it all depends on what role the investor and trader choose: to invest in long-term assets or in short-term ones, for example, acting as a scalper. If money is invested in long-term securities, then it is enough to look at the exchange once a week or a couple of times a month and monitor the situation. Recall that many exchanges allow you to automatically set the rate of return that a trader wants to receive. If it is achieved by changing the value of securities, the shares will be automatically sold, and the trader will receive a fixed amount of margin.
    When it comes to short-term trading, then a whole day of work needs to be devoted to such a process, since you will have to keep track of minute fluctuations in stock prices, sell or buy securities at an affordable and favorable price.

    Thus, we can conclude that each market player can choose one of three strategies:

    • Active. An active strategy is one that involves the daily activities of market players through short-term work and profit. Invest money in order to generate income from the resale of assets.
    • Portfolio. Portfolio is called an exceptionally long-term strategy, when a trader works for prospects and invests in securities that can only bring profit in the future
    • Mixed. It is characterized by diversification of the investment portfolio, when the investor works depending on personal circumstances and the nature of the stock market.

    Conclusion

    DIn order to successfully trade stocks on an exchange, it is not enough to have money and desire. One of the most important steps for success is thorough preparation, including theoretical preparation. It is necessary to learn about the features of the stock market, to understand the concepts of the most successful traders. Without a theoretical basis, it is difficult to begin practical work, since in the process of work it is necessary to understand what is happening, what key operations mean, etc. There are many good books and recommendations on the Internet.
    After the theoretical basis, it is necessary to competently approach the choice of a trader represented in the country. You must choose a trusted and reliable intermediary who will allow you to earn money.
    And after that, move on to trade and investment.

    © 2018, All About Finance. All rights reserved. Copying materials only with the permission of the author.

    Buying / selling shares: earnings or art

    Economic instability, changing living standards, etc. - the reasons causing most people to want to invest hard earned money in any profitable financial instrument.

    One of them, with the right approach, of course, is the purchase and sale of shares of various companies in the stock market.

    I can’t say that this activity is easy and does not require any diligence, but on the contrary, sometimes even real talent, intuition, if you like.

    But, as the statistics of the MICEX Stock Exchange show, over the past few years, the number of private investors engaged in independent trading in stocks and other instruments has significantly increased.

    The essence of this scheme of earnings is to “play” on the difference in the value of specific securities, and hence the possibility of obtaining impressive profits (or losses), which can contribute to further successful investment.

    In order to begin to better navigate in this area, you must, at a minimum, know some basic concepts, such as:

    1. The stock market is the place where the main movement of shares of enterprises and organizations takes place.
    2. Stock exchanges are special platforms where shares are bought / sold.
    3. Brokers are people or organizations that act as intermediaries in transactions on the exchange, including and with stocks.

    I recommend getting acquainted with this course from the author of a popular investment blog.

    All operations and transactions are carried out through brokers, and today, you can start this kind of activity even from a mobile phone, by registering at one of several reliable trading platforms, which can be safely attributed to brokers such as Finam or BCS.

    After registration, you will need to download a program that functions as a trading terminal. You can start making deals yourself, or use the services and recommendations of the manager (broker) assigned to you.

    Also during the registration process you will need to open an account (usually this procedure is completely free) and put on it the amount that will be required to start.

    In order not to pay a monthly subscription fee (300 rubles for BCS) for a full-fledged terminal, for example Quik, the minimum cost of assets should be at least 30,000 rubles. at the end of each month.

    This commission, if the amount of assets is less than the specified amount, will be reduced by the amount of the Brokerage fee paid according to the Tariff plan.

    At the Finam broker, about the same.

    By the way, you can buy securities not only on exchanges. For example, large banks offer Gazprom shares.

    But, it is much easier and better to do this using the online stock store from the Finam broker. To do this, just click on the button Buy stocks online and follow the instructions:

    Buy stocks online

    To make such a deal is quite simple, in terms of technical support.

    But, in the future, it is still necessary to begin to understand special programs in order to, for example, place stop orders that are triggered when the value of the stock reaches a certain level.

    Before buying an asset, it is worthwhile to conduct fundamental and technical analyzes of the company of interest. Assess its development prospects and determine the entry point (purchase) of the paper.

    Sometimes it is appropriate to familiarize yourself with the reports of famous analysts and analyze the information received with your assistant broker.

    Recommendations for beginning investors

    I want to give some recommendations to those who are just wondering: “Is it worth buying shares?”.

    Firstly, it’s definitely worth a try, but it’s important to do it wisely.

    Secondly, especially for beginners, I recommend following some simple tips:

    1. Allocate the maximum amount of time to the choice of a broker, since subsequently it will not only become a link between the exchange and you, but will directly affect the level of your income.
    2. If you invest material resources, then mainly in bonds or shares of successful companies and enterprises. According to experts, it is better for beginners to prefer long-term passive investment than trading on the stock exchange, in any case until the relevant experience and knowledge are gained.
    3. It is advisable to choose the method associated with the purchase of a share of the index fund by acquiring equal shares at certain intervals. The most profitable option is the purchase of shares in large amounts when they fall in the market or by a smaller amount at the time of maximum growth.
    4. At the initial stage of working with the exchange, you should not rely on the so-called speculative strategy, but take into account the rapid change in the market situation.

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