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Earn on shares

possible in different ways

The easiest way is to buy shares of the company, wait until the end of the year and receive the dividends due. The decision on their size is made by the management of the company, approved by its Board of Directors. It happens that a company decides not to pay dividends, and the owner of a small block of shares (minority shareholder) cannot influence this.

The movement of stock prices allows you to earn on the growth of their value

Another way to make money on stocks is to use the change in their price on the stock exchange, the movement of quotes. Investors buy stocks with the expectation of a long-term perspective of several months or even years. With a successful combination of circumstances, the shares rise in price, the owner sells them and receives his income in the form of the difference between the cost of buying and selling a package of securities.

However, stocks can become cheaper over time, and then the investor must decide for himself what to do: sell ahead of schedule, without waiting for the price to fall even lower, or keep it in anticipation of growth.

The third way to make money on stocks is speculation. Speculators operate differently. They "catch" the movement of quotes over a short period, buy and sell shares within one trading session, that is, a working day of the stock exchange. The difference in the price of buying and selling is the income (or loss) of a stock player. The principle is the same as that of an investor, but everything happens much faster. You can make transactions for buying and selling shares during one trading session as many times as you like, there are no restrictions here. Let's consider this type of activity in more detail.

To become a stock speculator, it is enough to open a brokerage account

It is purely technically not difficult to become an exchange speculator: it is enough to apply to a brokerage (investment) company, open a depo account there and deposit money into it. Then you can act in two ways: either give orders for transactions with your shares to the broker, tracking the movement of quotes, or independently make decisions about purchases and sales and carry out transactions.

This is done using special trading programs installed on the computer. You can use them by getting a workplace in your brokerage company or by installing the program on your own home or work computer. In the second case, you will be able to trade stocks without leaving your home or office.

The technical side of the broker's activity will not cause difficulties

Working independently, you yourself, using the trading program, place orders to buy or sell a certain number of shares at a certain price (in electronic form) and monitor their implementation.

When trading through a broker, you either trust his recommendations for making transactions, or personally give him orders to execute them. For example, you follow the movement of securities quotes on the exchange TV channel or on the websites of news agencies (Internet portals) and see that the securities you bought have risen in price significantly. You decide to take profit and give the corresponding order to the broker: you name your account number and ask to place an order for the sale of such and such a number of shares at such and such a price.

This is the technical side of things. However, the content is much more complicated, that is, the very nature and subject of the activity of a stock speculator.

Stock speculation is one of the most difficult types of business

This type of activity is considered one of the most difficult among all types of business, and there are many reasons for this. To become a stock speculator, you must have the appropriate training.

It is highly desirable to understand the processes taking place in the economy and in politics, not only in domestic but also global. The change in the price of shares on the stock exchange is due to a huge number of factors, and their influence must be taken into account. The general economic and political situation in the country, macroeconomic indicators, the state of world commodity markets (exchange prices for oil, gas, metals), the situation in the foreign exchange markets, the presence of geopolitical tension in the regions of energy production, the state of business in companies issuing shares (issuers) all this and much more affects the price of a stock at one time or another.

The exchange player experiences a huge responsibility and psychological overload

An exchange player must be a very knowledgeable, competent person who is constantly up to date with the news, follows economic reports and major global stock indices. Therefore, participation in exchange speculation only at first glance seems to be a simple task that does not require much effort and time.

The stock market game will also require you to exert a different kind of psychological, moral tension. This is due to the need for constant concentration of attention, quick reaction, and most importantly, responsibility for making one's own decisions and their consequences. And this is perhaps the biggest difficulty. Exchange speculators experience great psychological overload, making decisions in the face of time pressure and often unpredictability in the development of events. It requires independence of mind, great composure and psychological stability.

A novice broker should not use the raised money

Market participants buy shares not only with their own funds, but also attract loans from an investment company, that is, they work with leverage. It is categorically not recommended for a novice stock speculator to play with borrowed funds. It is necessary to limit yourself only to your own money.

The main disadvantage of trading with leverage is the risks: there is always a danger of losing not only your own, but also other people's money. So that players do not get carried away with trading with large leverage and do not become indebted to the company, the risk manager monitors the state of their accounts.

Gambling excitement is incompatible with the profession of a stockbroker

Trading with leverage, of course, has an obvious plus of expanding your own capabilities. By involving more financial resources in transactions, you can naturally earn higher profits.

Moreover, you should never get carried away and play with the “last” money, you should always take into account the likelihood of a sudden collapse in quotes, incurring losses and leaving free cash resources.

It is highly desirable to have another source of permanent income, not relying on stock exchange income as a means of subsistence. Get profit, grow your account very well. Don't despair, skill and experience will come with time.

Common misconceptions about the exchange and brokerage

1. Exchange is a casino, roulette.

This myth is the most common among the inhabitants and, perhaps, the most harmful. In fact, professional market participants are people who are engaged in responsible and complex business that has little to do with gambling. Stock speculation is a job, like any other, requiring personal effort and professional training. It is called a game only conditionally. Exchange players use theoretical knowledge in their work, apply various types of market analysis (we will not touch on this topic in this article).

2. You can learn how to play the stock market using virtual models.

This refers to a virtual game in which transactions are made only mentally, and profits and losses also exist only in the form of abstract figures. The opportunity to “play broker” is provided by some sites dedicated to playing the stock exchange. Such operations will never be compared in psychological intensity with real work in the market, and therefore are simply meaningless. It is better to learn from small amounts of money, but real ones.

3. You can't make money in a falling market.

This myth is especially important to dispel in times of crisis. Over the past year, the Russian stock market has lost about 80%, world markets on average about 50%. However, this does not mean that none of the participants in exchange trading made a profit. There are a lot of tricks that allow you to earn even in the face of falling quotes. The main thing is that their movement takes place, so that the market does not stand still. It is no coincidence that there is a saying among stock market players: “Trend is your best frend” (“The trend is your best friend”).

Even in a falling market, prices go up and down, so you can trade "on sale" - sell shares at a higher price and buy back at a lower one.

There is a “short” position, this is a short game with leverage: a player sells shares that he does not have (he, as it were, borrows them from his company) at a high price, and buys back (closes a short) at a low price.

Shorting is always risky and is not recommended for beginners. In addition, during the crisis, when the stock market began to fall sharply, the market regulator represented by the Federal Financial Markets Service began not only to periodically suspend trading, but also banned short operations - apparently, trying to keep the market from speculative downward attacks. So far, the official cancellation of the "shorts" has not happened.

Positive aspects of speculative brokerage

The opportunity to earn high returns is an advantage that is not comparable to any other legal type of investment. It is no coincidence that many of the world's great fortunes were earned on the stock exchanges.

The ability to withdraw earned money at any time.

Opportunity to start with a small start-up capital.

The ability to replenish the account at any time to any desired level.

Ability to work at home, in the office, anywhere you stay (in case of installing the trading program on a laptop).

Disadvantages arising from the conduct of the exchange game

The need to constantly make independent decisions associated with high risks.

A high degree of unpredictability of events, lack of information, there are always people who have information that is not available to the bulk of investors (insiders), who can influence the movement of quotes.

The need to pay a commission fee to the investment company for all transactions, and in the case of attracting loans for their provision.

High moral and psychological stress, the need to constantly monitor the situation.

The main requirement of the profession is full responsibility for your decisions.

Being engaged in stock exchange operations with securities, you can significantly increase the invested funds. Nothing prevents a stock market participant from combining speculative, short-term operations with investment for longer periods.

You can even open two or more accounts on one account, for example, trade within the trading session, and hold securities on the other (others) for a longer period, waiting for a favorable price level for you. The good thing about the stock market is that you are free to make decisions. Success depends on you, but you will have only yourself to blame for the losses.

How to make money on speculation on stock quotes?

An exchange is a place where, in a free market economy, the price of an asset is formed. Fluctuations in quotes allow you to earn on their movement in one direction or another. Therefore, people are often interested in the topic of stock speculation. This article discusses the main points that you need to know when working on the stock exchange. It also provides practical advice on where to start for an unskilled investor.

What is speculation. Where does the income come from

Speculation is understood as earnings on the movement of the price of an asset in a favorable direction for the speculator. That is, the task is to buy cheaper and then sell more expensive. The difference in purchase and sale is the income of the speculator.

Although you can earn on the difference between sales and purchases. This allows you to make the so-called short position or short. When going short, the speculator first takes an asset (shares, currency) from the exchange in kind. He will have to return this asset to the exchange. The speculator then sells the asset in the market at a certain price. If the price falls in the future, then the speculator buys the same asset at a lower price and returns it to the exchange. And he keeps the difference between selling and buying back. Thus, you can earn on the movement of quotes down.

A reasonable question arises - who pays? Other market participants who are ready to buy the asset at the new price pay.

The price of an asset is formed in accordance with demand. If the company is promising and shows profit, then the demand for its securities is growing. Similarly, the demand for the national currency of a particular country increases its rate. Here the key role is played by the state of the state economy, the attractiveness of assets for foreign investors, and the volume of currency in the market also matters. That is, at the heart of exchange speculation is always the economy.

However, it is not uncommon to hear about unexpected market crashes or bubble inflation. It really happens. There is often panic or excitement in the market. In this case, the winner is the one who was able to assess the real value of the asset better and more correctly than others, as well as predict the behavior of the main part of the players.

Where should you start?

A novice investor is best suited for the stock, bond and foreign exchange markets (not Forex).

First, you will need to open a brokerage account with a company that provides such services. There are different options for making a transaction (purchase / sale): 1) via the Internet (special software is installed for the client), 2) by phone call, 3) making an application in writing (for long-term investors).

The minimum amount to open an account for all brokers is different. Someone - 1000-2000 $. Someone has 10,000 rubles. Some banks and investment companies may have a lower threshold of only $1-5 or none at all. But any broker sets commissions for transactions. There are also account maintenance fees. They are different everywhere and can change over time.

Shares and bonds are purchased in separate lots - minimum packages. For some issuers 1 lot = 1 share/bond. For others, 1 lot contains 10, 100, 1000 securities, etc.

Potentially, a client can open an account without risk for a fairly small amount (from 10 to 50 thousand rubles). But he will have to abandon companies whose lot value exceeds the amount of the deposit. There will be few such companies.

How to choose the right broker?

First of all, you need to look at what reputation he has in the market, what share he occupies. In order not to take risks, you can use the services of state-owned banks - Sberbank, VTB, Gazprombank, etc. They are practically devoid of the risk of bankruptcy, therefore they are the most reliable. In the second line according to this criterion are the largest private banks - Alfa-Bank, Otkritie, MDM. Among the specialized brokerage companies, the largest and oldest are BCS, Finam, Aton. But the likelihood of their license being revoked is higher than that of large banks. At the same time, state-owned banks, for all their stability, provide not the most favorable rates. In any case, it is not recommended to contact little-known brokers, even if the commissions in them are very attractive.

Working with a specific tool

Stock.

The fair value of shares is determined by the financial performance of the issuer's company. Quotes are highly dependent on the release of certain corporate news, as well as on events in the industry. Serious movements are also observed during the reporting periods.

The price of shares in the market is constantly fluctuating. The potential earnings on speculation on them are high, as is the potential loss. To correctly predict the movement of quotes, you will have to study the basics of financial analysis. The performance indicators of the issuer and development prospects are evaluated for each security. You will also need to carefully monitor the news background.

A novice investor should determine the circle of the most reliable issuers. First of all, these are companies with state participation: Gazprom, Sberbank, VTB, Rosneft, Transneft, Alrosa, etc. They are protected from bankruptcy, in case of a crisis they will definitely be helped. It is also worth noting strategic companies: Surgutneftegaz, Norilsk Nickel, Uralkali, Lukoil, Tatneft, Avtovaz, etc. They can count on support in a crisis. Fluctuations in stock prices for these companies are not as strong as for the rest, and investment risks are lower. Most of them are included in the list of blue chips - the most liquid issuers that provide the bulk of capital on the Russian stock exchange.

When buying shares, you can expect to receive dividends. In Russia, they are more often paid on preferred shares. But the amount of payments depends on the decision of the company.

Bonds.

In essence, they represent a legally executed debt. That is, the issuer takes a loan from investors. And after some time it returns, paying interest. This debt can be - state, municipal or corporate. This instrument is more reliable than stocks. After all, in the event of bankruptcy of the company, the money is paid primarily to bondholders (debt holders). And bankruptcies of states or municipal authorities are rare.

Also on bonds there is an interest income - a coupon, it is paid at the time of redemption. But, in addition to coupon income, there is an opportunity to receive income from the difference in purchase and sale. The point is that bonds always redeem at par. Let's say if the face value of the bond is 1000 rubles, and the coupon is 10%, then the investor will receive 1100 rubles upon redemption. However, if an investor managed to buy bonds on the market at a price below par (for example, 990 rubles), then in addition to a coupon income of 10%, he also receives a benefit of 10 rubles.

At the same time, it is more difficult to speculate in bonds than in stocks, since their value fluctuations are small. And it is not always possible to buy a bond on the market at a price below par.

The more reliable the bond issuer, the lower the yield on it (usually within inflation limits). And the closer the maturity date, the closer its market price is to the face value. As a result, earnings on speculation are not very high, but stable. A large income can be earned only on the securities of not the most reliable issuers. But the risk of bankruptcy of such issuers is higher.

There are also zero-coupon bonds - discount. They are initially issued by the issuer at a price below their face value (for example, 900 rubles at a par value of 1000 rubles). At the time of redemption, the price is equal to the face value.

Currency.

Recently, the MICEX has the opportunity to buy and sell currency through a brokerage account, bypassing the Forex market. This mechanism can also be used in the case of simple currency conversion for practical purposes. But it's great for speculation. All that is needed is for the bank where the client is served to be able to provide brokerage services at the same time.

It is necessary to open ruble and foreign currency accounts in the bank, as well as open a brokerage account. First, the money is credited to the brokerage account. An operation is performed there (purchase / sale of currency on the MICEX). And then, if necessary, the money is transferred to a ruble or foreign currency account.

In this article, I will try to teach you the basics of trading on the trading floor. I will tell you how to buy and sell correctly in order to be in the black, and also demonstrate how to calculate the ideal percentage of maximum profit within a time period.

How to start cryptocurrency trading.

You will have to start by itself with registration on the exchange, because along the way I will explain what and how to do, especially using my guide, you can already earn some percentage. The amount of profit will depend on the market and on the deposit you have made, which you will operate with. The risks of losing some large part of the deposit are minimized, because we will speculate within one day. So let me introduce you to the stock market.

How to replenish the balance on the EXMO cryptocurrency exchange.

The fastest way is to replenish the ruble wallet through the QIWI service.

I think that a huge number of people have an application with an electronic wallet installed on their smartphones, because QIWI has three huge pluses:

1. 1. Quick and easy to use
   2. Small commission in many services for withdrawing money to QIWI
   3. The tax service will not be interested in you if you “turn over” especially large sums

If you just have a credit card, and you would like to replenish the balance of the exchange from it, then you will have to go through verification. The thing is useful for the security of your assets and your account as such, but it takes a long time to complete.

I plan to hold a competition with a cash prize, or rather, I will send the winner a deposit to the EKSMO exchange, I will post the conditions of the competition on the forum, so join

Greetings! The other day I watched with pleasure the film "The Wolf of Wall Street" with Leonardo DiCaprio in the title role. Adore . The intensity of passions, a sea of ​​events and emotions, ups and downs - beauty! Agree, in comparison with the heroes of such films, we live a terribly boring life.

Is it possible for a mere mortal to make money on the stock exchange? The answer to this question is not as obvious as it seems. Wrong are those who consider currency, stock or a giant scam. But anyone who hopes to consistently and easily earn thousands of dollars on the MICEX is also mistaken.

The truth, as usual, lies somewhere in between. Let's try to figure it out...

We will not touch Forex today. The article was very recent. Let's talk about - the one where securities are traded.

There are two ways to earn money here. And each has its pros and cons. "Speculator" or "Investor": which image do you like more?

Speculator

The speculator focuses on making short-term profits. He can "weld" a few percent in a couple of minutes or a couple of days. Then close the deal and take profit.

The speculator does not care what to trade. If only the instrument was more or less volatile. After all, a trader earns on price fluctuations (a dollar / ruble pair, a barrel of oil, Apple shares). The speculator is an active player. It looks for trends, uses and analyzes news, signals and forums. And every time it tries to predict where the market will go: up or down.

How much can a speculator earn?

A speculator can double his trading account in just one month! More than 1000 per annum can really be obtained in a couple of days or hours. The goal of the speculator is to outrun the market and make a serious profit in a short time.

Here, for example, are the real results of the LCHI competition - "The Best Private Investor". The Moscow Exchange holds LCHI every year from September 15 to December 15. Anyone can take part in the competition. As part of the competition, you can trade on the stock, futures and currency markets.

For three months, the top three earned on the stock market 267.98%, 263.95% and 232.81%, respectively. Is it tempting to increase start-up capital by 2.5 times in just three months? $10,000 deposited, $25,000 withdrawn...

Unfortunately, in real trading, everything looks quite different. Most traders showed results from 0% to 5%. Slightly less than half - from 0% to -5%. According to the results of three months, 50% of all trading accounts turned out to be in the red.

Not so profitable, it turns out, to be a speculator. But damn tempting, isn't it? 🙂 By the way, it also applies to speculation.

Do you remember the story of the beginning of 2016 about a private trader from Kazan? On the Internet, a link to this news walked on all social networks. In one day, Denis Gromov lost 15.1 million rubles on currency speculation, remaining 9.5 million rubles in debt to the bank! The story is dark, but still...

Investor

Have you noticed that they don't make films or write books about investors? About traders-speculators - please, but about investors - nothing at all!

And all because ... there is nothing special to show. In trading, they earn and lose millions in a couple of minutes, in the frame there is a sea of ​​emotions, yachts, limousines and luxurious women. The reviews of the lucky ones excite and make you believe in a miracle.

Investments are quiet, boring, more or less predictable and absolutely not spectacular. Making a film about an ordinary investor is like making an accountant or a tax inspector the main character in an action movie. 🙂

Now seriously. The investor is focused on receiving for a period of two to three years. Unlike the speculator, he buys or not as a commodity for resale, but as an asset or share in a business. The investor does not evaluate the general situation in the stock market, but looks at the prospects of a particular organization. He analyzes the company's financial statements using multipliers(profit, book value, profitability, etc.).

Particularly "lazy" investors do not even do this. They do not spend time analyzing markets, companies or securities, but allocate funds between different asset classes using . This strategy is called Asset Allocation. It takes a minimum of time, and yields higher than the market.

How does an investor earn? On dividends and growth in the value of a particular business. Unlike speculators, investors do not use stops and shoulders. Investors reduce potential risks in a different way -.

How much can an investor earn?

The goal of the investor: to overtake inflation and the market (usually a benchmark in the form of ) by several percent over the long term. An investor on the Asset Allocation strategy is also quite satisfied with the market return.

It is impossible to say how much, on average, an investor earns. Replace one asset in the portfolio with another or take the results for two "adjacent" years - and the numbers will be different.

Let's look at two investment vehicles.

Dividends on shares

Let's take the dividend yield of shares of Russian companies at the end of 2015. By the way, there are not so few companies in Russia that pay dividends to shareholders.

• I receive income even when the share price falls or stands still
• Regular payments create additional cash flow (every year, half a year or quarter), which can be redirected to investments

Government bonds

OFZ is another good investment option for a passive investor. The instrument is considered the most reliable in the Russian financial market. And the yield on such securities is almost always higher than the interest on bank deposits.

Income on government bonds consists of two parts: income from redemption / sale and . In the summer of 2016 OFZ traded with a yield of 8% to 12%. From OFZ, you can make a bond portfolio, buy it on and get a tax deduction of 13%.

How to choose OFZ for investment?

If the market is expecting an increase in interest rates, then it is better to buy bonds with variable coupon income. If rates rise, coupon income will also rise.

Against the backdrop of high inflation, it is worth taking a closer look at OFZ-IN (government bonds with nominal indexation). Such securities are indexed for consumer inflation. True, OFZ-IN usually offers very low coupon yields.

Bonds with amortized face value are suitable for those who want to generate intense cash flow. OFZ-AD are repaid not once, but in parts according to the schedule. By the way, just yesterday I have matured.

Whom to be more profitable: a speculator or an investor?

There is no clear answer to this question. It is definitely more difficult to be a speculator. At any moment, he can earn hundreds of thousands and immediately go into the red. Plus, the speculator must know and understand the market in which he trades. And possess such qualities as stress resistance, cold mind and good reaction. The earnings of a speculator can not be called either stable or.

The investor's income is more predictable and regular (as, indeed, his life). Compared to a speculator, his potential gains and losses are much more modest. You can be an investor “part-time”, without devoting all your free time to this. Necessary qualities of character: patience, analytical mindset and determination.

As for the answer to the most important question of the article: “Is it really possible to make money on the stock exchange?” - read my blog and see everything with your own eyes, and in real time! 🙂 Subscribe to updates and share links to fresh posts with friends on social networks!

P.S. If you want to learn more about the exchange, investment and trading, I advise you to look this webinar from Dmitry Mikhnov.

Just as it is impossible to get somewhere without knowing the route, a successfulstock tradingimpossible without a trading strategy. But why are they so useful to a trader, how to classify them and choose the right one? We will talk about this in this article.

Q: what is its purpose?

At its core, a strategy is a clear order or algorithm of actions that regulates a trader's trade. In other words, the chosen trading strategy determines when and under what circumstances the trader will open a position, how long he will hold it and when he will close it. Also, the strategy often affects what analysis methods a trader will use before opening a position.

Thus, it is easy to see the key purpose of the trading strategy - it helps the trader to have a clear plan of action and confidently work with the market.

However, there are certain pitfalls in applying strategies. So, many beginners decide that it is enough just to find or copy a good strategy from a successful trader and apply it in their trading in order to earn big profits. But this is far from true.

Firstly, each trader chooses a strategy that suits his style and way of trading. Therefore, what works well for a trader Lesha can bring you to big losses.

Secondly, the market is not static, and a strategy that works with a bang today may turn out to be ineffective and hopelessly outdated in a month.

It is for these reasons that it is important for a trader to know what basic trading strategies exist and be able to choose the best one for themselves.

: classification

All strategies can be classified according to various factors. So, if you divide them by complexity, you get the following:

• simple (and a beginner will figure it out);
• basic (the basis on which you can build your own strategies);
• advanced (the prerogative of experienced traders with a good understanding of the market);
• complex (a kind of assortment of several methods and strategies used by experienced pros).

If we divide the strategies by the time factor, the classification will turn out to be slightly different.

1. .
   Trading on very short periods of time - from a few seconds to several minutes with a large number of transactions per day.
2. (intraday).
   Less stressful than scalping, however, all trades do not live longer than one day.
3. Medium term or .
   Trades are opened every few days and held for weeks. At the same time, the entry into the transaction is made only under certain conditions prescribed in the trader's trading system.
4. Long term trading or .
   This strategy exists somewhat apart from trading, since it involves other mechanisms and approaches to work. It is used more often by large players with large capital.

If we return to the first classification, then the main strategies were mentioned there. A novice trader needs to know them, because most often they become the basis for creating their own strategy in the future.

One such strategy is pullback trading. It is also called countertrend trading. The bottom line is that on the price chart, the trader is looking for a gap when the price moves against the trend. This is a kind of market respite before a new trend, and if you enter a trade at this moment in the right direction, you can take a good profit.

Another strategy is trading without stops. The bottom line is that when opening a position, the trader does not set a stop loss. Although this approach has its advantages, it is very risky and does not give the trader the right to make a mistake. Therefore, such strategies are chosen by traders with extensive experience and a professional level.

A strategy in which technical indicators are not used, and only price patterns, bar combinations, signals and trend lines are used in the analysis is called Price Action. It is quite effective in predicting the direction of price movement.

In addition, trading on the stock exchange allows the use of other strategies. For example, this:

• moving averages;
• Fibonacci levels;
• Ichimoku indicator;
• VSA analysis;
• liquidity capture, etc.

How to choose the right strategy for trading in the market?

First, don't look for the Grail - it doesn't exist. Think of any trading strategy as a basis from which you can build your own strategy, modernizing and adapting it to your own trading style.

Second, choose , which involve a conscious approach to the market, and not some patterned actions. Such strategies live longer and bring profit, in addition, they are often universal and applicable in any markets and timeframes. You can learn such strategies at the Alexander Purnov Trading School. And you can learn more about the teaching methodology by subscribing to our blog. There will be many more interesting things here.