High profits of stock investors attract many newcomers. Citizens want to quickly and legally increase their existing capital. People who want to get additional income, are interested in how to make money on the stock exchange via the Internet. Today, there are a number of tools for trading from any geographical location.

Where to work

An exchange is a platform for making transactions. Sellers and buyers interact according to certain rules for a limited period of time. There are exchanges for stocks, commodities, currencies, etc. All this is used by traders as financial instruments for subsequent resale at a higher price.

Traded on stock exchanges securities. Enterprises issue shares and bonds to raise additional funds. On currency exchanges Ah, traders make money from currency exchange rate fluctuations.

A commodity exchange is a platform for purchasing resources, for example, hydrocarbons, metals, food, etc. An investor is interested in concluding an agreement to purchase a product in the future at a certain price. If the cost of raw materials increases, the contract can be resold.

The largest in the world are NASDAQ, NYSE (New York Stock Exchange), Tokyo Stock Exchange, LSE and others.

All exchange platforms on the Internet are represented by special applications. The interested party downloads the program, connects his account and can work from a computer or mobile device.

You can start by trading on the Moscow Interbank Currency Exchange. Information on the site is presented in Russian; an agreement with a broker can be concluded on the territory of the Russian Federation.

Trading mechanism

Work on the stock exchange is carried out only by organizations that have a special license. To enter the trading platform you must meet the minimum requirements:

• make a security deposit;
• not have penalties for violating financial legislation;
• hire trained traders, etc.

Individuals are not allowed to trade.

The organization gets the opportunity to buy and acquire securities and other assets. Traders can work independently or fulfill client orders. Companies present their analytics, conduct seminars and other training events.

To take part in the auction, you need to take a few simple steps:

1. Select an exchange. It is advisable to focus on an area in which a person understands. This will help analyze information and make assumptions about the future value of securities or other financial instruments.
2. Choose a broker. Information about companies is publicly available. You should look at customer reviews, successes and failures, regulatory complaints, financials, etc.
3. Select a tariff. Brokers provide a certain number of transactions for a fixed fee or take a percentage of each transaction. The choice depends on how actively a person will trade.
4. Enter into a contract. A person chooses how a relationship with a broker will be built. The companies' services can be divided into 2 categories. An organization can follow solely the instructions of its client or make recommendations on when and what is profitable to buy or sell. When working with large capitals, brokers take full responsibility for financial management.
5. Open an account. Money for making purchases is paid in advance by the client.
6. Download and configure the software(software).

The essence of trading is as follows: a citizen selects an asset that interests him, for example, a share of an enterprise. He sets in the program the number of required papers and the desired cost of their acquisition. The information goes to the broker, who duplicates the information on trading platform. If an appropriate offer appears, the deal will be implemented. The money will be debited from the account, the citizen will become a shareholder.

For example, an asset is traded within 900-902 rubles. A citizen makes a bet on a decrease, chooses a price of 895 rubles. When trading reaches this mark, the position will be closed. If the price does not fall below this level, the transaction will not take place.

Sales are carried out in a similar way: an existing asset is selected, the price and offer are made publicly available.

Trading on the Forex platform

High interest among people is caused by trade currency pairs on Forex market. The principle of operation on the stock exchange remains the same: the client sells or buys money using a special program, focusing on current quotes.

Clients of organizations do not receive direct access to the interbank currency market. The size of real orders is several million dollars in equivalent, so speculative trading requires too many resources. Most requests are satisfied through counter offers from other clients of the forex company during the day.

Most forex dealers provide leverage to their clients. A person transfers a certain amount to the account and receives the right to use additional company funds.

Some people believe that forex companies use fraudulent schemes, since applications are satisfied by brokers. Some participants argue that the purchase and sale of assets is carried out at rates that are set by the organizations themselves. What does not give the opportunity to earn ordinary traders.

People choose Forex because the entry threshold is lower. You can start trading with a hundred dollars, and no special knowledge is required to predict the rise or fall of securities.

Income

Everyone is interested in whether it is possible for an ordinary person to make money on the stock exchange. The essence of exchange trading is to acquire assets and sell them at a higher cost. A trader can make many trades throughout the day, buying securities during short periods of decline in price and selling during periods of growth. From the amount received, it is necessary to pay a commission to the broker and transfer taxes at the end of the year.

The amount of income directly depends on investments. Most traders on any exchange with a positive balance earn within 5% of their capital per month. Only a small part of the players has a profit of 20-60%. About half of all bidders have negative statistics.

In real time, a person can obtain information on specialized websites, thematic TV channels and other sources. Trading statistics are regularly published, and stock quotes for several months are available to everyone. All this is used to make a decision to buy or sell assets.

The funds received are withdrawn from the account. The procedure for withdrawing money depends on the rules of the broker company.
The likelihood of generating income on a trading platform is inextricably linked with the risk of losses. There is no guarantee that a person will definitely receive dividends.

Analysis of quotes and market forecasting is impossible without special knowledge. There are many books that teach the basic rules of stock trading, trading psychology, the basics of money management, interpretation of digital indicators, etc. Experienced brokers regularly conduct seminars, online conferences, and conduct training courses.

It is also worth adhering to a certain strategy of behavior. Many people believe that all you need to do is pick stocks well once and you can get rich from it. In most cases, traders study quote charts and try to buy and sell assets at certain stages of decline and growth.

Trading on a whim leads to losses. If a person makes a purchase or sale under the influence of emotional impulses, or trusting intuition, then he soon loses capital. Losses and profits are assessed based on the results reporting period, for example, months.

Some people believe that brokers cannot give helpful advice for beginners. It is beneficial for them that the client suffers losses and invests additional funds, but that's not true. The more efficiently the broker's employees trade, the better the organization's reputation will be. And the more clients will be interested in their services.

If a citizen decides to invest large amounts of money, he should enter into an agreement with a brokerage company from the Russian Federation. If disagreements arise, the trial will take place in Russia. Contracts with a company from the US or UK most often contain clauses that disputes are resolved in a neutral territory, for example, in Switzerland, which implies additional costs.

Copying the behavior of the most successful trader will not necessarily lead a person to profit. It is necessary to apply other people's knowledge, but rely on your own experience. Therefore, you should deposit funds into the account that a person can safely lose. You should not start trading by taking out a loan.

If a person does not know how to make money on the stock exchange as a beginner, then he should start by trading stocks or bonds. The price of shares can change significantly during the day - the price is influenced by events in the world, company news, reports on the activities of the issuing organization, etc. Bonds are more stable - profits will be lower, but possible financial losses will not be as serious.

Fraud in stock trading

There are many stories on the Internet about victims of unscrupulous “brokers”. Representatives of unknown organizations contact citizens by phone, offer to trade on exchanges with favorable commissions, promise high profitability and information support. People transfer money, follow the advice of the manager, supposedly sell or buy certain assets. Trading gives short-term profits, but gradually drives the client into the red. Managers convince people to deposit additional funds to return to trading, but this does not bring results.

When a person tries to withdraw the remaining money, they give him only part of it, citing problems with banking service security. After this, managers do not contact.

Before transferring money to the account, it is necessary to require the organization’s statutory documents, a license to carry out exchange trading, and conclude a contract. Brokers have no problem submitting such documents, since their activities are conducted openly. Each trading platform keeps statistics on the activities of all organizations. You should not transfer money to someone’s account without an agreement, only after a telephone conversation.

Speculation on the stock exchange is a high-risk type of commercial activity. Anyone can make money, but successful traders are experienced people with specialized knowledge.

With the onset of the crisis, many people are faced with the question: where to get additional income? Many people are interested in making money online, but how do they make money on the stock exchange via the Internet? Is it realistic for a beginner?

In order for the start to be successful and the income to be real, you need to be properly prepared, find all the necessary information, and study all the intricacies of making money on the exchange. Making money on stock exchange transactions via the Internet is not so easy because of the numerous nuances that need to be understood in more detail.

The very concept of an exchange arose in the Middle Ages; initially they were platforms where bills of exchange were traded between merchants of that time. Mutually beneficial deals were concluded and negotiations were conducted on such platforms. Over time, exchanges have undergone significant changes; computerization, which has swept the whole world, has not spared exchange platforms. Today, all exchange trading takes place on the Internet, it has its own rules and charter, which is regulated government agencies. The exchange arbitration system was created to solve controversial issues arising between people taking part in the auction.

There are a variety of exchange platforms on the Internet, including:

• currency exchanges;
• commodity exchanges;
• stock exchanges;
• options exchanges;
• commodity exchanges;
• futures exchanges.

There are also universal exchanges on the Internet; a beginner who has decided that working on an exchange on the Internet is exactly what will help him get a good income must understand for himself which exchange platform he wants to start his activity on, having carefully studied each of them.

For example: work on the stock exchange, where shares of the largest companies (Russian and foreign) are sold, requires the trading participant to: provide authorized capital (minimum amount- 1000 USD), concluding a contractual relationship with a broker, providing personal data, paying taxes. All this can become a problem for a beginner who decides to start making money on stock exchange transactions.

Important: good earnings on the stock exchange is guaranteed only if a person has excellent knowledge of economics.

For a beginner who wants to become successful stock market player, you need to prepare properly, study trading platforms, understand the basic methods of conducting trading operations in order to make real profits.

What is a financial exchange?

A financial exchange is a platform where precious metals and currencies are sold. Also, stocks and options are offered for sale here. A financial exchange platform is a real opportunity for a person with a small amount to try his hand. Here you can earn money on the difference in rates:

• valuable papers;
• stock indices;
• raw materials;
• precious metals;
• exchange rates.

How to work here? A beginner must predict the situation in advance; if the forecast is correct, the transaction will bring profit; if the forecast is incorrect, the person will lose money. The following players are involved in the bidding process:

• trader - a person who buys and sells shares and assets;
• broker - a person who accepts applications for a transaction.

What is a binary option?

The most promising path for a beginner is to try his hand at binary options. Working on it is akin to working on the currency exchange. The rules are simple enough that an unprepared person will not need much time to understand them. Here it is necessary to purchase an option and place a bet; if the forecast is correct, the person receives some pre-fixed profit; if the forecast is unsuccessful, he will lose only the amount that was agreed upon at the very beginning when making the bet.

What is a stock exchange?

Trading on the stock exchange is considered the most difficult option. To carry out such trading activities, a person should be well versed in many issues. To begin with, he should:

• start tracking stock exchange news;
• study analytics;
• attend special courses;
• open an account with a broker.

From the very beginning, you should make minimal bets until the beginner develops his own strategic position.

Trader, who is this?

Gambling people who are well versed in making money from changes in quote rates are called stock traders. Becoming such a person is not so easy, because playing on the stock market is not just blind luck, a trader must have good theoretical training in the field of finance, have a financial sense, and understand global market trends. It is the trader who can consistently make a profit on the stock exchange. The most successful traders are invited by large financial institutions. In order to become a specialist in the field of trading, you can enroll in training courses or prepare yourself by studying the relevant literature.

Broker, who is this?

A broker is a specialist who provides a novice player with what is necessary for trading on exchange platforms:

• license to conduct exchange operations;
• membership fee;
• expensive software.

For the services provided, the broker charges the client a pre-agreed amount as a percentage of each transaction. To choose a reputable broker, a beginner should carefully study the reviews of the specialist and make sure of his professional qualities and integrity.

Exchange Transaction Options

They practice on the stock exchange the following types operations:

Investment.

Such operations are chosen by people who do not like to take unnecessary risks; here funds must be invested for a certain period, at the end of which an increase in the invested assets is expected. The annual profitability of operations is approximately 30 percent.

Speculation.

This option is suitable for gambling people who love risk. You can make money here by reselling assets that generate exchange rate differences. The profitability of the second option is much higher, but the risk of losing money is also quite high.

Important points that a beginner needs to know

A beginner who decides to start making money on stock exchange transactions on the Internet must understand that the stock exchange is not a winning lottery ticket. Earning money is possible only if a person takes into account the following in his work:

1. Each exchange platform operates according to its own individual schedule. Trading takes place at certain hours. The longest transactions are transactions with currency, and they are also the most profitable.
2. A beginner should learn trading terms even before starting to work on the stock exchange. Their knowledge will greatly help in conducting transactions.
3. A beginner should develop in advance a trading strategy suitable for a specific site.
4. A beginner should carefully choose a broker; on some sites you can run into unscrupulous brokers who profit specifically from beginners. When choosing, it is advisable to consider several candidates, having learned from each of them all the nuances of interest (how operations are carried out, what guarantees are available, how much the services cost, what software is used in the work).

The ideal option would be for the broker to provide a beginner with the opportunity to try his hand at a virtual simulator, where a person deals with non-existent accounts, assets, and investments. This kind of training will help you really make money in the future.

Mistakes that newbies make

Mistakes at the very beginning of trading activity are common for everyone, But the most common mistakes among people who have recently started trading on the stock exchange via the Internet are:

• absence trading strategy, reluctance to draw up a trading plan in advance;
• continuation of transactions in an area where profits are minimal and losses are constant;
• lack of a good broker;
• excessively exceeding the limit on the account;
• lack of calm and focus.

Theoretically, trading on stock exchanges provides a lot of opportunities to make good money. You can make a profit here almost around the clock, but success comes only to those who do not rely on blind luck. A beginner should understand that nested small amount is unlikely to bring multiple profits. Only knowledge, work and perseverance will help you get a stable and regular income.

According to statistics, no more than five percent of people who start this business successfully make money on stock exchange operations. Other people spend a lot of effort and money, but do not achieve success.

BEST LOANS OF THIS MONTH

For the survey to work, you must enable JavaScript in your browser settings.

Many people want to learn how to make money on the stock exchange, because now this type of earnings is more popular than ever. It is worth giving an answer to the pressing question: “how can a beginner make money on the stock exchange at home?” For a successful start, you should study a lot of information regarding this type of income. Excellent preparation will help you understand all the intricacies of this type of activity. Earning money on the stock exchange cannot be called easy, as many people think. It's worth figuring out why.

Exchanges on the Internet

Exchanges appeared in the 15th century. At first, they were territories where bill trades were held among merchants. Negotiations were carried out between the participants who came to a common denominator. Over time, the situation has changed radically, the system has undergone computerization. Trading takes place according to existing rules, trade is regulated by the charter and the state. Arbitration helps resolve all controversial issues.

There are many exchange options on the Internet, they are:

• currency;
• stock;
• commodity;
• raw materials;
• futures;
• optional.

In addition to the above, there are universal trading platforms; the participant only needs to decide on the directions and begin to study the important points. The stock exchange offers the sale of shares of large companies operating not only in Russia, but also abroad. In order to become a participant in this exchange, you need to have a capital of at least 1 thousand dollars. You also need to carry out a number of sequential actions, such as:

• signing an agreement with a broker,
• providing personal information,
• signing various types of papers,
• payment of taxes.

The above actions and especially the last point become a stumbling block when working with a particular exchange. They work mainly with large investors who are able to increase profits from investments by at least 20%.

Successful earnings on the stock exchange require excellent economic knowledge.

A beginner can succeed in this matter if he prepares thoroughly. A person must have a good understanding of the trading platforms on which he plans to carry out his own activities. He must understand the basic ways of implementing operations that, with the right approach, bring profit.

Definition of financial exchange

A market involving trading in precious metals and money is called financial exchange. Here you can buy shares, currency, options, make deals, etc. Some compare the world's existing exchanges with those on the Internet. This is mistake. Transactions on the real world stock exchange are incomprehensible to ordinary people; there you need to act according to certain schemes, have good starting capital and have some experience in this area.

Another thing is an exchange on the Internet, which provides an opportunity to earn money for a person with a small starting capital. The essence of making money is speculation, but for everyday needs it is unrealistic to use the exchange. Earnings are made due to an increase or decrease in the exchange rate of an asset, which can be:

• stock;
• currency quotes;
• stock indices;
• valuable metals;
• raw materials and so on.

Any exchange provides for the conclusion of transactions, initial stage which is forecasting the future dynamics of the schedule. One of two things: either a person will make money on a correct forecast, or he will suffer losses. The process involves interaction between traders and brokers. The former buy and sell assets and options, the latter accept applications for transactions.

Binary options are a promising market for beginners. The working conditions are very similar to those offered by any currency exchange. You can quickly understand the rules; they consist of purchasing an option, placing a bet, and controlling time. If the bet wins, the participant receives a fixed amount, otherwise he will not lose more than he initially set.

Most beginners choose binary options, since working with them is easier to understand. The size of your profit depends on studying the psychology of stock trading.

Who is a stock trader

This person will be able to answer the question of whether it is realistic to make money on the stock exchange. Traders for the most part came to the exchange following their own passion. The right approach and knowledge of the matter have allowed many to make a fortune from this. Not everyone is lucky, since working on the stock exchange is not a lottery ticket. A rich theoretical base, as well as studying the behavior of the exchange and the market, will help you achieve success in this difficult task.

Traders often work under a license for themselves; talented people are hired large companies. Internet trading contributes to stable earnings; if you do not stop there, the stock exchange can turn into a profitable professional activity.

To start working online, it is not necessary to use paid courses. You just need to spend some time studying the nuances of such activities. Acquainted with general rules market can be achieved by reading books where the authors express their thoughts in an accessible and understandable way.

Where to find a broker

There are conscientious brokers, you just need to find them on suitable Internet resources. When choosing, broker reviews play an important role; many positive reviews indicate a person’s integrity and professionalism. A beginner should find a good broker who will help him navigate his new field.

The broker will provide the beginner with everything necessary, the latter will not have to pay for an expensive license, software, and membership fees. Brokers themselves pay for all of the above items, and in return, a person works on the platforms provided, and pays them interest on completed transactions.

Working hours play an important role, as some exchanges start working at night and end in the early evening. Reputable brokers usually provide tutorials for new traders. The program includes the principles of trading, imitation of a participant involved in trading, work with virtual accounts.

Operation methods

There are two options for carrying out operations:

• investment;
• speculation.

The first option is chosen by conservative investors who invest money for the long term in anticipation of an increase in the value of the asset. Such activities can bring in 30% income per year.

The second option is to resell assets that provide the formation of the exchange rate difference. This option is more risky, but promises more income. It is more convenient to implement this method on stock or foreign exchange markets.

Speculation is divided into two types. Intraday translated means intraday, which means that the purchase or sale of an asset is carried out within a few hours. Day trading(trading day) the difference between buying and selling is several days.

How to make money on the stock exchange via the Internet

A person who is just delving into this matter must understand that the stock exchange is not roulette. To understand how the market works, there are several important points to consider.

You shouldn’t settle on just one broker; it’s better to talk to several at once and only then choose one. The broker needs to clarify important points, including the process of carrying out transactions on a particular trading platform, the cost of commission payments for services, the type of computer program that provides access to trading, methods of depositing and withdrawing funds, and the broker’s guarantees to its clients.

It would be good if the broker provided the opportunity to practice concluding transactions on a training account, where work is carried out with virtual investments and assets. Transactions with real accounts should be concluded only after gaining experience and certain skills.

Further actions

How to make money on the stock exchange? Now Additional income more relevant than ever. Among the huge number of options, it is worth noting trading on the stock exchange. For many, such an activity seems difficult to understand, almost impossible. But if you set a goal and break all the actions into stages, then the process will not seem so difficult and even exciting. The following steps will help you understand the intricacies of this type of earnings:

• viewing analytics and tracking stock exchange news;
• opening an account with a brokerage company that will provide access to the market;
• attending various educational events;
• stock trading courses.

You should not hope for quick results and take unnecessary risks. The bets should be minimal until you develop your own strategy. Some people treat this activity as a game - this is wrong, because real money is at stake. Trading is a job that brings some people a main source of income and others an additional one. You need to treat it accordingly. After time, many stop, believing that they already know and can do everything. This is wrong, you need to constantly work and improve your skills, study theoretical materials, think through complex schemes, and analyze all transactions.

Common Mistakes

No one is immune from mistakes, traders are no exception. The most common mistakes are:

• in the absence of a trading plan;
• in the absence of a money management system;
• in obtaining insignificant profits against the background of significant losses;
• in excessive trading of funds available in the account;
• in the absence of patience.

From a theoretical point of view, the stock exchange provides unlimited opportunities for making a profit. Participants can earn money at any time of the day, of course, while the exchange is open. Despite this, not everyone succeeds.

There are factors that affect traders’ income - the size of the deposit, trading system, Kind of activity. A deposit of 1 thousand dollars does not contribute to a profit of 1 million.

Many are relying on luck, because some participants managed to receive disposable big wins. There is a streak of luck in life, but new traders are aimed at receiving a stable and regular income, which, according to experienced traders, is not high.

Time does not stand still, the work of exchanges is constantly being improved, various modern technologies. Participants no longer need to trade manually; everything is automated and streamlined. Trading robots are involved in the process.

According to statistics, only 5% of beginners earn real money, the rest, having spent a huge amount of money, give up, believing that they were deceived. A person who studies the field, has perseverance and a desire to learn can achieve success in this field.

Under capitalism, people can increase their savings in two ways - build their own business or invest in someone else's business. Most affordable way to invest in someone else's business for an ordinary citizen - open an account with a broker and start trading shares on organized platforms and exchanges. I will try to present in a logical order the points that do not allow people to make money on the stock exchange.

1) Ignorance, obscurantism and unwillingness to learn

Exchange trading is an activity with a very low entry threshold, especially in Russia, which is both a plus and a minus. To start trading, the uninitiated will need to open an account with a broker and deal with placing orders; 2-3 days will be enough. A neurosurgeon studies for many years before performing brain surgery. In stock trading, 99% of beginners don’t even think about it. Instinctively, they feel that it is necessary to gain knowledge about a new field of activity. They take training courses from professional participants or fall into the clutches of market people who sell hope, losing their first money. Having received “knowledge”, they begin trading with a calm soul, not suspecting that they remain in the 99%.

2) Risk aversion

Trade on financial markets is associated with enormous risks. Man is designed in such a way that he is terribly afraid of losing what he has acquired, especially what he gained through long labor. It is much easier to make pleasant short-term decisions than unpleasant ones. It’s more pleasant to spend money on a new trinket than to take it to an “unclear office” for no apparent reason. For this reason, the vast majority of people never come to the market and that part of the capital that they could get for their financial investments, are given to the capitalists, making them even richer. Savings depreciate, and life gradually turns into a financial disaster. Anyone who dares to step onto the stock exchange path falls into a popular trap - not wanting to take on market risk, he refuses to invest in stocks, the generally accepted norm, and switches to short-term speculation. In his opinion, only fools lose money, and he is not one of them and knows exactly when to buy and when to sell, and vice versa. After some time, the vast majority of speculators suddenly find that their returns are inferior to simply investing in stocks. The remaining small portion of successful speculators think that they receive high returns due to the discovered market inefficiencies, forgetting about other risks, such as the complete disappearance of inefficiencies for many years, not to mention the fact that they were simply lucky and the given instrument or market is extremely efficient. After a few wasted years, they are surprised to find themselves in the first group of speculators, having received completely different returns than they expected.

3) Human greed

You could write an entire dissertation on this topic, is everything clear to everyone already, or not?.. Nobody wants to waste their precious time on stock trading, they already work in a job they don’t like. Therefore, the majority strives to get rich quickly, big time and retire to a well-deserved retirement. The dream sellers from point No. 1 and the organizers of various exchange competitions clearly showed everything - nothing is impossible, “you can do it,” “it’s easy to trade on the market.” Taking into account Russian specifics, the low standard of living, and the low savings rate, human greed takes on a truly monstrous scale. 100% per annum, no, 150%! Forex kitchens, financial pyramids, binary options, money surrogates. Looking for a solution to your financial problems a person ends up anywhere but on an organized market regulated by the laws of the country, not knowing that from year to year it is thousands of times more difficult to receive 100% per annum than 10%. As your financial appetite grows, the risks also grow, and non-linearly! By taking leverage, you have made a deal with the devil. People are not willing to accept market returns and are willing to go to great lengths to take other people's money. They enter into the stock market game and lose everything - money, jobs, housing, family, life.

4) High expectations

It's human nature to value one's skills highly; no one wants to be a failure. According to surveys, 80% of drivers consider themselves to be in the top 30%, 93% professional workers They rate their skills above average, and no one comes to the stock exchange to lose money. Warren Buffett in his best years had a ratio of CAGR/MaxDD = ½ (average annual return to maximum drawdown), now his ratio is ¼. The Oracle of Omaha has not lost his touch, he has become very big. Beginners, entering speculative trading expecting a 50% annual return, unknowingly set themselves obviously impossible goals - CAGR/MaxDD = 2 or even more. As a result, they fall into a deep drawdown and cannot bear the pain of losses, they cannot stand it and leave the market forever. A diversified portfolio of stocks with a potential 15% annual return will not give you a 15% return next year. With a 99% probability it will bring you a result from -50% to +70% and you must be prepared for this. No pain, no gain. Limit your risk in the first three years of trading by dividing your capital 50/50 into risky and defensive instruments. Don't resort to leverage. Expect challenges, not profits, see what you're worth.

5) Lack of a formalized strategy

Few people want to seriously and consciously study and come up with trading rules. Most people in the market make decisions about a trade based on intuition or “extensive trading experience”, i.e. subjectively. The picture below clearly illustrates why you shouldn't always rely on your life experience. I suggest you answer a simple question - which of the squares is darker and how much of your capital are you willing to bet on it? Square A or Square B? 100%, 50%, 10%, 1% of capital?

If you managed to answer this question correctly, then you are a unique person. An ordinary person cannot give the correct answer due to subjectivity, the so-called predictable irrationality, which is fraught with catastrophic losses on the stock exchange. Trading on the stock market is contrary to human nature and is stressful, and the level of stress can be extremely high (to the point of insanity) when trading is very risky. Under stress, you can’t count on making the right decisions. You can only get rid of the influence of the human factor and psychology through systematic trading. Develop a clear set of rules by which you will enter and exit a transaction, buy certain shares and sell others. Some people trading on the stock exchange will say, “I already have a system, I just can’t formalize it.” Well, you have nothing. Look for ideas and factors in scientific articles that have robust, statistical significance. Test them yourself and apply them in your strategies. Develop your system based on other people's strategies and follow it. The decision-making system should be simple, but not simpler. This will be your starting point. Avoid information noise, don't reinvent the wheel. Not following your system means going back to the very beginning, on the first day of trading on the stock exchange. This concept will allow you to receive returns above the market in the long term.

6) Neglect of expenses and commissions

Expenses and commissions are an integral part of stock trading. Choose a reliable broker with minimal commissions and fees. Calculate the level of commissions for your trading style, try to reduce the turnover. Pay attention to taxes, open an IIS. A thoughtlessly chosen trading style combined with a small deposit can take away all your profits. You will become a slave of the exchange, the broker and the state. Don’t look for excuses for buying useless software, trading robots, advisors and another eighth monitor. Choosing a fund for investing free Money, carefully study the size and terms of charging management fees.

Capitalism is cruel. Fight or surrender to the winds of time.

Stock trading attracts many people. There are many reasons for this, but the main one is the opportunity to quickly earn big money. In addition, today you can trade on exchanges without leaving your home, which is a very good prospect for many. The opportunity to be financially independent, not have to go to work and earn a decent income attracts many people. In addition, there are a lot of advertisements on the Internet today that encourage you to make money on the stock exchange without leaving your home.

Of course, in reality everything is not so simple and rosy. There are no official statistics, but generally experts on this topic are of the opinion that most of those who try to trade on the stock exchange sooner or later lose their starting capital. This happens for a number of reasons, which I will discuss below, but here I will note that trading on the stock exchange is not a stable source of income.

There are several types of exchanges:

• currency;
• stock;
• commodity;
• futures;
• optional.

They are classified based on the assets they trade. There are also universal exchanges where you can trade several types of assets. For the average person, the first two types of exchanges are of interest, and I will tell you about them in more detail.

Currency exchanges

As the name suggests, currencies are traded on foreign exchange exchanges. The most famous and popular is Forex. The idea is extremely simple: you need to buy a currency whose exchange rate is expected to rise in the near future, after which it is sold and a profit is made. If you fail to guess the exchange rate movement, then in this case you lose money.

Most transactions are short-term, which introduces a certain degree of excitement. However, there are certain methods that allow relatively accurate prediction of exchange rate movements. For example, when OPEC countries declare that they will not impose restrictions on oil production, this almost always means one thing: the currencies of oil-producing countries will fall. All you have to do is guess against which currencies they will fall and, accordingly, buy them.

You read urgent news and decide to buy 50 dollars for 3,000 rubles at the rate of 60 rubles (the numbers are conditional), after which the ruble exchange rate drops to 65 rubles per dollar. By selling dollars, you receive 3,250 rubles. The example is very simple, but it works something like this.

Stock exchanges

Stock exchanges trade stocks, bonds and other securities. They work on the principle of currency exchanges, but here your income depends on the movement of securities prices. They are less popular because they require more start-up capital than currency exchanges.

Stock exchanges have both their pros and cons (compared to currency exchanges). In case of stock trading, this also usually refers to short-term transactions that oblige you to sell securities after a certain period. That is, buying shares of a company and waiting as long as necessary until they rise in price will not work.

What you need to get started

An individual cannot independently trade on the stock exchange. It doesn’t matter whether you choose currency or stock trading - you will need the help of a broker. This entity, which is an intermediary between you and the exchange. In addition, brokers provide the following services:

• leverage;
• software;
• analytical materials and forecasts;
• training programs.

Brokers themselves earn from the commission they receive from each transaction you make. There is a very serious competition between them in the struggle for customers, so you should not choose the first intermediary that comes across. Approach your choice as responsibly as possible, study all the conditions. Sometimes you can get quite tangible cash bonuses on your first deposits - this opportunity should not be discounted.

Almost all brokers provide an opportunity to open a demo account, with which you can practice making money on the stock exchange without the risk of losing your funds. Yes, experienced traders say that trading with real money is very different from trading with virtual funds, but it is worth learning the basic mechanisms of the exchange with the help of a demo account. If you are a beginner, I do not recommend trying to trade with real money from the very beginning.

Speculative trading vs investment

The exchanges are engaged in speculative trading, which involves great risks. In addition, traders sometimes rely on their intuition. In the case of investments, everything is completely different. Investors carefully analyze the assets in which they are going to invest their money. Therefore, the risks are much lower. There are several key differences between speculative trading and long-term investments (besides the term).

If funds are invested in shares as an investment, then they count not only on an increase in their value, but also on dividends. If the company whose securities you bought shows a profit, then you will receive dividends, which will pay back your investment over time. But this time can be quite long - up to 10 years or more. If they count on dividends, they often buy shares of large and reliable companies (Sberbank, Gazprom). In this case, the purchase of shares is considered as an investment of money with the aim of preserving and increasing it. However, dividends are not always higher than on bank deposits.

Sometimes stocks are bought in the hope of further growth. Experienced investors are able to analyze the prospects of both an individual company and the entire market as a whole. Here is an example of changes in the stock price of NVR Inc.

It can be seen that the minimum was on November 1, 2016, and the maximum was at the end of June 2017. The difference in the price per share was $1,000. That is, in seven months it was possible to make a profit of 66%.

In speculative trading, such profits can be achieved in one day or even in a few hours. There is no need to calculate market movements and other trends for months and years in advance; you just need to guess or know current trends. In addition, in speculative trading (on any exchange), the broker provides you with leverage, which allows you to increase your starting capital by 10-100 times. This is the main difference - in speculative trading you do not need very large starting capital.

To put it simply, long-term investment in securities is only available to people with large capital. Speculative trading is available to everyone. If you had $3,000 and bought shares of NVR Inc, after seven months you could sell them and make a profit of $2,000. The profit is good, but clearly not enough, because you can earn more at any job during this time.

How much can you earn on the stock exchange?

Almost everyone is concerned with this question first of all. The answer is simple: you can earn as much as you want on the stock exchange, and the amount of earnings will depend on your knowledge, experience, luck and other factors. I can give specific numbers. Every year the Moscow Exchange holds a competition “Best private investor" It runs from mid-September to mid-December, and those who show the greatest profits win. Let's look at the results for 2016 on the stock market.

In first place is the investor who showed a profit of 1132% in three months. His starting capital was 50 thousand rubles, at the end of the competition - 569 thousand. In total, he conducted 15 thousand transactions. For comparison, in 5th place is an investor who showed a profit of 235%, but made only 10 transactions. It is quite obvious that in the first case it is more about luck and intuition, and in the second one can already talk about serious calculation.

A little more than 100 people showed a return of more than 100% on the stock market, despite the fact that 12 thousand people took part in the competition. About three thousand showed a negative result.

On foreign exchange market everything is more deplorable.

It can be seen that only one person overcame the 100% profit barrier, and he became the winner. Well, only 78 people made a profit of at least 10%. A similar picture is observed in all previous years. It follows from this that it is preferable to make money on the stock exchange stock market, not currency. I won’t talk about specific reasons in this article (there are many of them), but, as you know, statistics don’t lie.

How to make money on the stock exchange

Not many people manage to make stable money on the stock exchange. The main reason is improper management of your capital. Trading on the stock exchange is not only the need to predict the movement of rates, but also control over your emotions, the right trading strategy. A lot of novice traders lose their money simply by succumbing to banal excitement. This is especially true for currency exchanges. A few successful deals - and it seems to a person that he is "flooded". And then just a few failures in a row follow - and all the capital is lost.

The first thing to learn is how to manage your money. Understand that there is a very big difference between you and large traders (companies). The latter can afford to play “long” even in speculative trading. They have sufficient capital that allows them to lose millions today and get them back tomorrow. An ordinary trader cannot afford this.

Also, you should not count on the fact that, even using leverage, you can provide yourself with a good monthly income with 100–1000 dollars of starting capital. To do this, you will have to take a lot of risks, and sooner or later the risk is guaranteed to lead to the loss of money. That is, to obtain stable and good monthly income You still need to have serious starting capital, which will allow you not to get involved in potentially highly profitable, but very risky transactions, but to be content with more reliable transactions, but with lower profits.

An annual return of 90–100% is considered very good. Don't expect to increase your capital by 5-6 times. Yes, this happens, but usually for every successful trader, there are dozens who lost their money.

Success can only be achieved if you treat stock trading as a profession that requires long and hard training. Any other approach is guaranteed to lead you to failure. Maybe not right away, but you will lose your capital. It is impossible to become an experienced trader in a few months and earn stable income, people have been learning this for years. And if you are a gambling person, then it is better to completely abandon attempts to make money on the stock exchange through speculative trading.