Everyone wants to either earn or keep their money, and often both. One way to achieve financial goals is to invest in securities. At first glance, it may seem that this is a complex process and not suitable for ordinary people, but this is only at first glance. Understanding securities, finding out their advantages and disadvantages is not so difficult. The main thing is to determine your strategy, choose the type of investment and the term, be patient and have nerves of steel.

Types of investors and investment strategies

For the most part, people who invest in securities are called investors. But this name is conditional. According to the tactics of playing on the stock exchange, they are divided into investors and traders (speculators).

Investors are guided by long-term strategies. Often their main task is to preserve their capital. Therefore, they invest in securities to save them from inflation. In addition, exchanges often generate higher returns than bank deposits if we consider investments in the long term for 5-10 years. This also attracts conservative investors.

People who care about their financial future are just as conservative as big investors. They are attracted by regular investments in large sustainable companies, called "blue chips", for the long term.

Likbez: blue chips (blue chips) - securities of reliable and reputable companies that are least subject to fluctuations in the market.

Another type of players on the exchanges are professional traders. They buy and sell securities in order to earn money here and now. Often, they conduct dozens or even hundreds of transactions per day, usually despite the reliability of the issuers and without conducting fundamental analysis. They play simply - along an ascending or descending trend line, earning fractions of a percent on each transaction. This type of activity is called scalping.

Likbez: Scalping - from the concept of "scalp": the constant speculative buying and selling of securities by a trader in order to earn even a minimal profit. There are programs for traders who do scalping instead of a person.

Types of securities

There is a great variety of different securities:

• deposit certificates;
• treasury bills;
• bonds;
• options;
• forwards;
• futures;
• stock.

With most of them, ordinary citizens never meet in ordinary life. We will also not consider papers used in the corporate segment. We are interested in securities as an investment object, so we will focus on stocks, bonds, options and futures. Which of these papers to choose, decide for yourself. Someone plays with only one type, someone uses everything in their portfolio. If you evaluate the investment qualities of securities, then for a novice investor it is better to deal with one type, and then move on to others.

Among the above, shares are considered the simplest. They are the most simple and understandable to a simple man in the street.

Futures

The official name of futures is futures contracts. Their name comes from the English word future, which translates as "future" and explains their essence in the best possible way.

Futures are buying now and receiving in the future. Oddly enough, we encounter futures in everyday life almost every day. Have you bought tickets to the theater for the premiere, which will take place in a month? You have entered into a futures contract. Now neither the prices of resellers nor the rise in price of tickets at the box office worries you - you have bought the right to visit the theater at the exact appointed time. To make money on such a contract, you need to sell your tickets on the day of the premiere along with resellers, that's the profit.

If we talk about trading on the stock exchange, then the futures contract today reflects your forecast on the price of a commodity that is traded on the stock exchange. Initially, they applied only to products Agriculture, but due to the growth in popularity, they switched to metals, oil, gas, stocks, stock indices and more. Large funds and oil companies buy futures in order to protect themselves from losses. Well, a small investor should save up some money, since each futures contract has a standard rather large size (from 1000 units), and there is nothing to do here with several thousand dollars.

Options

Options are correctly called “options on futures contracts”, translated from English as “opportunity”. Their essence is a little more complicated than that of futures. An option gives the right to buy futures at a price determined today.

Comparing futures and options again, if on the first one you have already bought oil or gold in a month, but at the price of today, then on the option you have acquired the right to buy them in a month.

Important: The option does not impose any obligations on you. It gives the right, you are free to use it or refuse. If you have a call option at $1,200 and the contract is worth $600 by the time you buy it, then you don't have to pay and operate at a loss.

There are two types of prices in an option: the premium price and the strike price. The first is the value of the option itself, the second is the price at which the option can be exercised at some point in the future.

Also options are American and European. American - flexible, according to the rules of exchange trading, they can be implemented at any time. European - only at the end of their term.

And the main difference: investing in securities in the form of options allows you to go both high and low. This is due to the fact that options are call - the right to buy and put - the right to sell. But as we noted above, this is pampering for sophisticated investors.

Bonds

Bonds, in simple terms, are debt obligations, or money loans. The state or a company wants to build something, modernize production or start producing new products, but there is not enough money, then they issue bonds. We lend them money in exchange for securities. Issuers promise us to return after some time the entire amount of the debt and the interest on it, which is called a coupon.

Likbez: Issuer - a state or company that issues securities traded on the stock exchange.

The coupon yield is often higher than the bank deposit, which attracts investors to invest in securities. In addition, bonds have two values:

• nominal - the one at which it will be redeemed by the issuer;
• market - the one for which it is traded on the stock exchange.

If the issuer is reliable and attractive to investors, then the market price is higher, and you can earn extra by buying bonds at face value and selling them at market value.

By type, bonds are state, municipal and corporate (private).

Important: government and municipal bonds are exempt from personal income tax, but they usually have the lowest yield.

There is another way to make money on bonds - buying discount bonds. Their meaning is even simpler than coupons: they are sold at a price below the face value, and the investor will receive a profit in the form of the difference between the face value and the discount value of the bond. Bonds are classic investments in fixed income securities.

Types of strategies

There are several approaches to investing in bonds:

• capital gain

Invest in long-term bonds. This strategy should be applied in a market with high bank rates when you expect them to decline. Then long-term bonds will rise in price, and you will earn.

• Stable current income

Buy short to medium term bonds and you will have a permanent coupon or discount income.

• Ladder strategy

The most complex and subtle strategy. It consists in filling the portfolio with bonds with different maturities. We take 10 bonds with terms of 1 year, 2, 3 and so on up to 10 years. After a year, the first bond is redeemed, and all the others become “younger” by a year. Thus, in our portfolio there is not enough 10-year paper, which we buy. A year later, the operation is repeated. One of the best investment techniques, because it allows you to get high returns in the long term due to the predominance of long-term bonds in the portfolio. In the end, as you understand, only 10-year bonds will remain, which are both more expensive and have a larger coupon.

Bonds are differentiated by reliability. Each bond is assigned a rating from AA, A, BBB, BB, B, CCC, CC, C, where AA is the most reliable and C is the opposite, respectively. Bonds rated BB and below are considered risky and speculative securities.

Important: in any case, you must understand that bonds are not bank deposit, and if the issuer goes bankrupt, the money will not be returned.

Stock

Shares are the main investment securities. Both adults and children know them. The essence of the shares is simple - the company's capital is divided into small and not very shares and is sold either to everyone or to a select few. These small shares are shares. When you buy shares, you are buying a small piece of the company. Having a significant piece, you can already dictate your terms to the management team. In principle, this is why many companies prefer not to give a share in the company to a large investor, but to divide the necessary capital into many small shares, which will prevent the accumulation of shares in the hands of one shareholder and his pressure on the company's policy.

The company that issues its shares is also called the issuer. In order for shares to be traded on the stock exchange, they must go through the issuance procedure, and the company must be listed.

Likbez: Listing - the procedure for obtaining official status on the stock exchange.

All shares are traded on stock exchanges: you cannot buy them without going through the exchanges. Also, you can't just get on the exchange: each has a certain number of places - licenses and sells them or distributes them among professional brokers, mainly management companies and investment funds. If private investor wants to trade securities on the stock exchange, he must work through a broker.

The shares themselves are of two types: preferred and ordinary. Preferred shares pay dividends in the first place, in return such shares do not give voting rights to the shareholder. They are produced in small quantities, and usually they are more expensive. The rest of the shares are ordinary, they are traded every day on the stock exchange.

Equity Investment Strategies

There are two types of income received from a share:

• dividends;
• resale income.

Dividends are usually paid by companies once a year. To pay or not to pay them is decided by the board of directors. Many companies do not pay dividends for years, and you should not count on receiving them. In addition, dividends usually represent a small percentage of the value of shares, rarely for which issuers this percentage is more than a deposit in a bank. Nevertheless, there is a separate direction in investing - investing in stocks in order to receive a constant dividend income.

Important: you need to have a large volume of shares in order to receive at least some significant income from dividends.

Dividend investors monitor news and announcements from issuing companies about their dividend policy. The main goal is to determine in advance whether there will be payments or not. It is necessary to buy shares before the cut-off date.

Likbez: The cut-off date for dividends is the date on which the register of shareholders is closed. Anyone who bought shares after this date will not receive dividends this year. The cutoff date does not match the payout date.

It is also necessary to monitor upcoming payments by indirect signs, because when management announces the payment of dividends this year, frantic purchases of this asset begin, and the price naturally goes up rapidly. Dividends are paid in the form of a fixed amount per share, and the cheaper you bought the paper, the more interest you earn on it.

Important: with a strong increase in the price of a share before the cut-off date, it is sometimes more profitable to make money by selling shares. Especially if you do not count on payments in subsequent years.

Experienced dividend gurus advise paying attention to the following signs that may indicate payments:

• The company's report shows a very large net profit, significantly exceeding previous years;
• The majority shareholder is interested in big dividends. These are usually 2 options: the main majority shareholder is a foreign company that is used to regular payments. And the second - the majority shareholder bought a package for loan funds and is interested in making payments to repay the loan.

Likbez: The majority shareholder is the main shareholder.

• The budget of the state or region is in deficit and is in dire need of money. Then the government can force state-owned issuers to pay dividends.

In any case, the dividend strategy involves constant monitoring of financial news and analysis of the public and corporate sectors. It is also necessary to regularly evaluate the investment qualities of securities.

Another strategy is to make a profit by playing on the stock exchange. Either in the short term, as we have already mentioned, by scalping, or in the long term, when the share price rises. Of course, stocks cannot increase in value indefinitely. During the operation of the stock exchange, the market fell to the very bottom many times and rose again. Even in recent history this happened twice: in 2008 and 2014. Investors who bought securities the day after the fall in 2008 earned the most. The profit of some was 1000%. Opportunities like this are rare, and the prudent investor should watch for and take advantage of them.

To earn from the sale of shares, you need to buy - cheaply, sell - expensively. In addition to periods of decline, there are other factors for successful investment:

• the company's shares are undervalued;
• the issuer is bought by another, larger and more successful company;
• the company has started the development of a large field, launched the production of new products, or plans to increase revenue in some other way;
• initial public offering of a prospective company.

To assess the attractiveness of investing in certain securities, you can use the Morning Star matrix. On its basis, all securities can be divided into 9 groups depending on their stability in the market and the rate of growth in share prices. The more risky the investor chooses, the more he should buy shares of small and rapidly growing companies, as an option - shares of "dark horses". With a conservative approach, you need to build your portfolio of value large stocks in Morning Star terminology. In any crisis, the shares of such companies, as a rule, are unsinkable.

stock exchanges

All securities are traded on stock exchanges. The first and today the oldest stock exchange is located in New York. Russian investors have the opportunity to trade not only on our exchanges, but also on major exchanges world:

• New York Stock Exchange - NUSE;
• National Association of Dealers in Securities and Automatic Quotations NASDAQ - electronic exchange;
• Toronto Stock Exchange TSX;
• London Stock Exchange;
• Tokyo Stock Exchange;
• Moscow Stock Exchange - the result of the merger of RTS and MICEX in 2012 MOEX.

Each exchange has its own index - this is a set of shares of the main issuers of the exchange, the dynamics of which shows the general mood on the exchange. The Moscow Exchange has two indices inherited from previous organizations: the MICEX index - in rubles and the RTS index - in dollars.

Summary

Many are both afraid and attracted by the possibility of investing in securities. On the one hand, markets and stocks show good growth, on the other hand, news about the next day of the stock market is very often frightening. The unknown is always scary. Having understood the basics of investing, types of securities, their advantages and disadvantages, you can safely go to conquer the heights of the stock exchange. Let's recap:

• The main securities on the exchange: futures, options, bonds and stocks;
• Each paper has its own investment strategy;
• Having chosen a strategy, it is better to stick to it, rather than change it. Staggering back and forth does not lead to good;
• The strategy should be based on the amount of free funds of the investor, the period for which he can freeze them by purchasing assets on them, the long-term investment goal;
• The simplest instruments are stocks, the most complex are options, the most conservative are bonds;
• You can trade on the stock exchange only through a broker with whom you must conclude an agreement and open a special brokerage account;
• You can trade not only in Russia, choose brokers with a wide range of trading platforms;
• Each rise in the stock exchange is followed by a fall, and vice versa, the main thing is not to miss price fluctuations.

And most importantly - be prudent and cold-blooded. Good luck!

- This is a Swiss bank with access to Forex! 18 000 $

I have been working with him since 2007. invested $10,000

- 1500 USD as a bonus. invested $10,000

- the best cent account. invested $8000

- For scalping only he AND EVERYTHING! 8000 $

- $30 GIVE ALL NEW! invested $5000

- $30 GIVE ALL NEW! invested $5000

- IT'S NeftepromBank. invested $5000

- I use it as binaries through MT4. Invested $5000

And now how to make money, we are discussing everything in a closed group, more precisely in secret forex forum ! There are a lot of traders, financial bloggers, brokers and newbies! We discuss what works and what doesn't! Join us, the more of us, the easier! See example of personal income

A security indicates either the existence of rights to property or a loan. In any case, the security provides an opportunity to receive some income. Each security has a nominal and market value. The nominal value is indicated on the document, and the market value has a certain dynamics. The securities market is often called the stock market. Most of these securities are traded on special exchanges.

What are the types of securities

Stock

Such a security is evidence that a contribution was made to the capital of a certain joint-stock company. The shareholder has the right to receive dividends, and in some cases, to participate in management. In the latter case, it is necessary to own a controlling stake. Shares are divided into ordinary and preference shares. The latter give an advantage in receiving dividends. And for ordinary shares, in some cases, there may not be dividends at all, since everything has its own risks. The acquisition and sale of shares is beneficial primarily for the companies themselves, since in this way the production process is ensured. But stock trading is also popular among ordinary investors, as it can bring good profits in the future.

Bonds

Such securities indicate the presence of debts. The owner of the bond receives the right to compensation for its face value and interest, which accumulate during the time the debtor uses the loan given to him. Government bonds have a special status. The latter guarantee the receipt of funds, but it will not be possible to squeeze much out of them. Investors are much more interested in corporate bonds.

Bills

The bills oblige the user to repay the loan cash within the specified period. Investing in securities is also associated with them. Interest-bearing bills are rather readily acquired by investors. But such securities are not listed on the stock exchange, as they must be clearly drawn up on paper.

Other securities

Among other papers, it is worth highlighting those listed below.

1. Bank certificates, which indicate the presence of a certain amount of funds in the bank.
2. Depository receipts required to confirm ownership of securities of a foreign issuer.
3. Securities of the state (or government), which include not only bonds, but also checks with gold certificates, as well as treasury bills.

Privatization checks (or vouchers).

There are also derivatives like options. Such securities are contracts that arise when the value of the underlying asset changes. For more plain language this means that such securities have an expiration date, and they are purchased on a certain date, and the securities listed above are perpetual. An option gives you the opportunity to buy a certain amount of an asset in the future with funds deposited now. Options trading is very popular. Moreover, the difference between options is that the conditions for some of them can be fulfilled before the agreed time, and for others - just in time.

There are also futures. Recently there was a scandal related to the acquisition of bitcoin futures. As a result, bitcoin has sunk a lot and is now less popular. Futures oblige to buy an asset at a fixed price at a specified time.

Fixed income securities

Such securities differ in that the profit from their sale is strictly specified. Such securities cannot include interest-bearing bills, shares and many others. A government bond and an ordinary bill of exchange fit into this category.

How to start investing in securities

First, understand the principles of fundamental analysis. Remember that there are low-yield, but very reliable securities (like government bonds), and there are options and futures, from which you can either make huge profits or get nothing.

Objectives and Strategies for Investing in Securities

If you are not afraid to take risks and aim for large amounts, then purchase derivative securities, and if you just want to receive a small income in a measured way, bonds and bank deposits are suitable for you. Before choosing an investment strategy, evaluate your financial capabilities. You should not invest 100% of the capital in risky investments, as you can be tantamount to being in a big win and losing all funds. Distribute capital evenly. Corporate bonds and company stocks are the golden mean of investing, as they have an equal ratio of profit and risks.

How to invest

To do this, you can either invest on your own, or entrust them to traders. Among traders there are: mutual funds, conclusion of a contract with investment projects and trust management of banks. Remember that if you entrust your funds to professionals, then you will be charged the corresponding commission. It is also worth choosing a trader carefully, since a considerable number of scammers offering earnings have recently divorced. If you want to trade on your own, you will need a broker. The broker will provide you with a trading platform and will keep strict financial records. The services of a broker should not be neglected, since the costs for it are not so serious compared to the profit from trading. Investing in securities for beginners involves trusting reliable traders.

Return on Investment and Benefits of Securities

The advantage of securities is that by selling them, you are essentially making money out of thin air. Securities are the same commodity that can be bought and resold. The only difference is that the profit from securities can be very large, but it may not be at all. Profit from the most risky securities can be several hundred percent.

Possible risks

Risks should always be taken into account. For example, by purchasing bitcoin futures, investors planned to receive a large income from its rise in the future. But in the end, the launch of futures turned around a sharp collapse cryptocurrency, which is unlikely to stabilize in the near future. The risks may vary. For example, a company whose shares you have acquired may go bankrupt. It is often difficult to predict such risks, but it is still worthwhile to soberly analyze the market and understand what may develop in the near future and what may not.

Investments in stocks and securities

Stock trading in the stock market dates back to the 17th century. The first exchange in the world where shares were traded was the Amsterdam Stock Exchange (1612), and the first joint-stock company (East India) was founded in 1602. Many have heard stories about the largest and oldest London Stock Exchange (founded in 1698), about stockbrokers from the New York Stock Exchange (founded in 1817), but the stock exchanges of our country have a completely different story. MICEX (Moscow Interbank Currency exchange) was founded in 1992. But this does not mean that financial instruments did not exist in Russia before. Back in tsarist Russia, various kinds of promissory notes and the like were sold. It is not known how this direction would have developed if it were not for the ban on speculation in the Soviet Union, but as a result, we have a stock market that is only 27 years old. In this regard, there are many nuances, many non-obvious things, many fears and risks associated with investing in securities in Russia. Let's not forget about unscrupulous market participants who, under the guise of buying shares of large companies, offer trading in contracts for difference (CFD contracts for shares), which have nothing to do with the exchange, and can lead to zeroing the depositor's trading account with a fluctuation of 10% .

What is investing in stocks and securities

A security is a document certifying the property rights of the holder in relation to the issuer. There are several types of securities. Consider the main ones and give a classification.

Financial instruments:

Stock

Shares are issued by joint-stock companies (JSC) and are part of the capital of the company. Each shareholder is a co-owner of the issuing company, he can participate in meetings of shareholders, vote in the election of members of the board and vote on the choice of the company's development strategy. Shares also pay dividends. They are formed from net profit companies, and their size depends on financial statements issuer. If the company shows loss-making statements, no dividends are accrued. The difference between preferred shares and ordinary shares is that preferred shares receive dividends in the first place, and ordinary shares receive second. Also, holders of preferred shares, unlike ordinary ones, do not vote if the company pays dividends.

If the company operates at a loss and does not pay dividends on preferred shares, then they also become voting.

Shares have face value and can be traded on the stock exchange. The market price may differ from the face value. Par value is the price for which the share was sold at the first placement on the stock exchange, as a rule, it is lower than the market value.

Fluctuations in the price of a stock are called volatility. The figure shows the price chart for Sberbank shares for 2019. The graph shows the change in price for the year and the payment of dividends on July 1, 2019, which amounted to 16 rubles per share.

Bonds

Bonds are debt securities. The owner of the bond has the right to receive the face value from the issuer within a certain period of time. There are coupon bonds - those for which coupon income is paid once a period (for example, once a quarter), and there are non-coupon bonds, only face value is paid on them (at the end of the term). These securities are also traded on the stock exchange and have a market value that may differ from the face value.

Bonds are issued not only by private companies, but also by state-owned enterprises and even states. Government bonds have a high reliability rating, however, a low yield.

There are secured bonds issued against a specific asset. For example, a bank issues a package of bonds under the portfolio mortgage loans. Loan portfolio provides bond payments.

In general, a bond is considered a more reliable financial instrument than a stock. Since the bond has a face value that is strictly fixed and is obligatory for payment, the same coupons for shares have a certain size and are paid on a specified date.

bill of exchange

A bill of exchange is an instrument very similar to bonds, only a bill of exchange exists necessarily in paper form. Also, bills are not listed on the stock exchange, i.е. are OTC instruments.

Derivative financial instruments:

Futures

Futures is a contract for the sale and purchase of an underlying asset (commodity, stock, currency) at a certain time in the future at a predetermined price. The buyer and seller are responsible for the execution of the contract to the exchange. Futures are standardized and are a recurring offering. These contracts are traded on the stock exchange.

Forwards

Forwards - an agreement under which the seller undertakes to transfer the underlying asset to the buyer within a certain period of time, and the buyer undertakes to accept and pay for this asset in the manner prescribed in the agreement. The contract specifies the quantity and quality of the goods, it is binding, the price of the goods, the exchange rate and other parameters are fixed at the time of the transaction. Unlike futures, they are not standardized.

Options

Options are contracts that give the option buyer the right (not the obligation) to buy or sell a specified amount of the underlying asset on a specified date. In this case, the seller of the option has an obligation to buy or sell the underlying asset, depending on the type of contract. The buyer of an option pays a premium to the seller.

Swaps

Swaps are an agreement to exchange underlying assets in the future under predetermined conditions. The side that better predicts the dynamics of prices for underlying assets makes a profit. Swaps help mitigate currency risks as well as asset price risks.

What are the types of investments in stocks and securities?

There are several common options for investing in securities. For an investor, there are two main issues when placing their funds in securities - this is the investment period and the acceptable level of risk. And if everything is clear with the deadline, then the risks need to be seriously dealt with. Yes, securities are a risky asset, but smart investors know how to minimize risks. In order to deal with the above two issues, we will carry out the following classification, and consider the types of investment decisions when investing in securities.

Buying shares of one company

In the case of such an investment decision, the investor consciously takes risks. One share can undergo a significant price change, and this will greatly affect the investor's capital. Professionals don't usually do this. A professional investor can invest a significant amount in the shares of one company, but it will still be part of a certain portfolio of securities, where there are other instruments. The investment period in this case may be different, but usually speculators follow this path, investing money in this way for up to 1 month in anticipation of a significant short-term price increase. The increase in investments in this case can reach up to 30%, but there may be a loss of the same 30%, it all depends on the correctness of the price movement forecast. The risk in such an investment is very high, and in modern conditions, when leverage is provided for stock trading, you can lose all the money invested. We will talk about leverage and margin trading below.

Venture investments

This direction is an investment in the shares of a company that is only conducting an initial public offering on the stock exchange. These are high risk investments. Shares during the initial offering can either rise sharply in price by 10 times, or fall to almost zero value. When choosing this investment strategy, they usually invest not very large amounts in several different companies, hoping that some of them will burn out, but others will add significantly in value, and the investor will turn out to be profitable. Here, an investor can receive several times more capital than he initially invested, however, he may lose almost all investments. From a venture investor, you can hear the catchphrase "you can earn an infinite amount of interest, but lose only 100."

Trust management

It all depends on your manager. Usually an investor approaches the choice of a trader very scrupulously and pays attention to 2 most important aspects. The first is trading history for at least the last 3 years. If a trader does not provide a history of managing his own account, then big questions should arise as to how he was going to manage someone else's capital. We advise you to check the reliability of the trading history, and, best of all, to cooperate only with those in whom you are sure. Secondly, the trust management agreement, as a rule, prescribes the level of responsibility of the trader and the level of risk capital. If you were given an agreement where the trader's liability is indicated as 0%, then there is a high probability that you will lose all the money. And in general, many fraudulent schemes are associated with trust management in Russia due to the lack of sane regulation at the state level and the poor literacy of the population, which I spoke about in an article about Forex.

Portfolio investment

Portfolio investments are already a more reliable and serious investment product that can provide a certain level of capital protection. Typically, the portfolio includes part of the "protected" capital, which is placed in government bonds and bonds of large commercial companies (for example, 70%), and the remaining 30% goes to risky and high-risk assets such as stocks (for example, 20%) and cryptocurrency ( for example, 10%). The total return of the portfolio is bond coupons and a possible increase in the value of shares and cryptocurrencies. Real profitability can reach up to 20-35% per annum with such capital protection. But even in the event of an incorrect forecast and a fall in prices for risky assets, the investor will no longer lose all investments, he will have at least 70% of his capital. And here the main thing is not to try to “recapture” losses and not to invest the rest in risky assets again. Those who do this usually lose everything. Investments in portfolios of securities, as a rule, have a period of 1 to 5 years.

Structural products

Structured products - they are very similar to a portfolio of securities. Part of the funds is directed to "protected assets", and the other part to risky and profitable assets. The only difference with portfolio investments is that the portfolio, as a rule, is compiled individually at the request of the investor, while structured products offer ready-made standardized solutions. Investment term from 1 to 5 years. The yield is similar to a portfolio of securities.

Self-management

Self-management - IIAs (individual investment accounts) have recently begun to gain popularity in Russia. They allow using a program on a computer connected to the Internet to make transactions for the purchase and sale of assets on the stock exchange. The investor himself makes decisions, conducts fundamental and technical analysis the asset of interest, and based on its conclusions, performs trading operations. The term of investment and profitability depends only on the investment strategy of the investor.

Mutual Investment Funds (UIFs)

Equity Investment Funds(PIF) - an instrument designed to invest small amounts in assets that are of great value. Investors' money is actually in the trust management of the company, which provided each of the investors with the opportunity to invest their amount in an account managed by the company. The advantages of a mutual fund in a small the minimum amount investment, in that the investor does not need experience in capital management and in the fact that a yield of up to 20% per annum is provided. However, mutual funds do not guarantee any interest, your earnings depend on the success of the account manager. In this case, there may be a loss on the account. This product is intended for non-professional investors.

Investing in stocks and securities for beginners

For novice investors, the most important thing is to understand how to correctly assess the risks of investing money. Often there are situations when inexperienced investors invest all their savings in high-risk assets, relying on the big profit that unscrupulous financial advisers promised them, as a result of which they lose all their capital. I will point out several criteria that you need to pay attention to when making a decision to invest in securities. The first and most important thing is the company that provides the opportunity to purchase this asset. Brokerage activities in the Russian Federation are required to be licensed by the Central Bank of the Russian Federation, so check whether the company has a license to provide such services. Do not use the services of companies registered in St. Vincent and the Grenadines, as well as in the Marshall Islands. These are the only two places where brokerage activities are not subject to any regulation. The second is the assets in which you are going to invest. Here it is important to understand what your broker offers, real assets or contracts for difference (CFD contracts). Real assets will be safer investments. Also, for a novice investor, it is more preferable to buy a portfolio of securities for a period of one year than to engage in speculation or use trust management from a trader. Minimize your risks. Even if you are not yet very well versed in the securities market, you should understand how much you can lose in the worst case.

How to make money on securities

There are several strategies that can bring good results. However, do not neglect the fact that the market is volatile. A strategy that has brought great profits in the past is not a fact that will be successful in the future.

1. The easiest way to make money on securities is to buy bonds and receive coupons on them. But in this case, the yield will be small, up to 12% per annum, if you buy reliable bonds.
2. Another way is to buy shares of several companies that are actively growing. And here there are both Russian securities that are attractive for purchase, as well as shares of large Western companies. With the right investment, you can get a return of up to 30% per annum with relatively low risks. It is better to buy shares of at least four different companies.
3. And the third, simple and enough reliable way– ready-made solutions in the form of a portfolio of securities or structured products. In this way, it is better to invest with the most reliable and large brokerage companies.

Is it possible to make money on securities

It is real to make money on securities, but you need to take into account that such investment is always associated with a certain degree of risk. If you pay due attention to the selection of assets and the choice of a reliable broker, then the probability of success of your investment will be high.

TOP-6 best securities investment brokers

Aton

Investment company Aton has a license from the Central Bank, provides good conditions and an individual approach. Aton has a very good reputation in this area.

Sberbank

We are all well known and very reliable bank has its own brokerage company that you can trust.

VTB Capital

As in the case of Sberbank, the VTB group of companies has its own licensed broker. You can safely trust the services of this company.

BCS Broker

The BCS group of companies, which includes a bank and a brokerage company. BCS is one of the leading brokerage companies in Russia.

Opening Broker

Otkritie Broker, also affiliated with the bank, is one of the largest in Russia. Despite the fact that Otkritie Broker is younger than the other companies mentioned here, this company is developing very actively.

Finam

One of the founders of brokerage in Russia. A large and reliable company that provides many services.

Risks of investing in stocks and securities

Here it is worth mentioning that the securities market is volatile, and it does not guarantee profitability (with the exception of bonds), so investing in securities is always associated with risk, but it is important to understand that the risk of losing 10% of investments is one thing, and losing all your deposit is different. The loss of the entire deposit threatens in two cases. The first is that you invested your entire deposit in the shares of a company that went bankrupt, and the liquidation capital was not enough to cover the losses of shareholders. The second is margin trading. In this case, you can lose 100% even if the price changes by 10%. This happens if you trade assets using leverage. This makes it possible to earn a lot on a small price change, but also increases the risks by the same amount. For stock trading, leverage is usually not higher than 1 to 10, which means that for the amount of 1,000 rubles you can buy assets worth 10,000 rubles with leverage. But you can lose your thousand in this case when the price changes by 10%. Margin trading is suitable only for speculators who know well what they are getting into. If you do not understand what leverage is, it is better not to use it.

And the last thing that can happen is an unscrupulous broker. There is a chance that you will be told that you bought stocks, but in fact you bought cfd contracts with leverage. And now you, not fully knowing what happened, accidentally risked your entire deposit.

Insurance of investments in stocks and securities

Investments in shares and securities are not subject to insurance. These are risky assets, and none Insurance Company will not insure your investments.

Hello!

Financial crises, political instability can devalue money. Even a bank deposit does not guarantee security.

Therefore, the issue of saving and increasing money worries many people. There are many ways to make money on the stock exchange. Investing in securities allows you to make a profit and protect your capital from negative factors.

A security is a document that secures property or financial rights to the owner. The second wording designates securities as an asset capable of generating dividends or income. Their circulation is regulated by regulatory rules and enshrined in law.

The organization that issues them is called the issuer. In addition to enterprises, the state can act as an initiator.

Types of securities

Securities can be divided into 2 categories: exchange-traded and foreign. The former are purchased on special platforms, the latter can be bought outside of them. The assets of about 300 enterprises are being sold in Russia. But there are many more joint-stock companies operating in the country, and not all of them are on the stock exchange. Although the main players are present on the site.

The same with bonds, which can also be sold outside the trading floors. But this process is quite complicated and is a private transaction. In market investments, the stock exchange becomes the guarantor.

Securities are:

• company shares;
• bonds;
• depositary receipts;
• checks;
• bills;
• mortgages.

Shares, receipts and bonds are sold on the Moscow Exchange. The rest are OTC instruments.

Pros and cons of investment

For successful work on the stock exchanges, it is necessary to take into account the risks and use favorable circumstances.

The positive factors of exchange investments include:

• accessibility even for novice investors. Registration with a broker and opening trading terminal require only 1-2 thousand rubles. The procedure is simple and will take a maximum of 2 days;
• speed of operations. Unlike tangible assets (real estate, cars, antiques), securities largest enterprises sold within an hour;
• mobility. You can trade from anywhere with access to the network;
• possible profit. Investments in the Central Bank can give more money than a bank deposit. Sometimes the company's securities grow by tens of percent.

But the opposite scenario is possible: securities can lose a significant part of their value.

Negative factors include terminal maintenance fees and brokerage commissions. They range from 0.05 to 2% and do not greatly affect financial result investor.

Profitability and risks

These parameters in investments are sides of the same coin. Both factors are interrelated and do not exist separately. In this sense, the main postulate is formulated as follows: the greater the return, the greater the risk. And vice versa. There is no 100% return without risk, no matter what strategy an investor uses.

Finding the optimal ratio of risk and return on investment means correctly assessing the situation. Novice traders often neglect this rule, thinking to earn a lot right away. They buy risky assets and lose quickly.

To be successful in the stock market, you need to learn how to manage risks. Some can be eliminated, others can be minimized.

Ways to minimize risks

Diversification helps to avoid negative consequences. The term means the purchase of various assets. If the portfolio consists of 10 stocks and 10 bonds of 20 different issuers and one company goes bankrupt, this will not lead to the collapse of the entire portfolio. The result will be a decrease in profitability by 5-7%.

Another way to avoid losses is to increase the duration of the investment. It is better to buy securities for a period of 3 years or more. At such time periods, risks are reduced and covered by the heterogeneity of investment instruments.

How to start investing

From study. You need to understand what securities to invest in. View weekly and daily charts, explore financial statements(revenue, profit, dividend yield), view ratings and debt volume.

You should determine for yourself the amount of investment. In Russia, there are no special restrictions on this indicator, but foreign brokers do not open accounts for less than $2,000. It is important to use only free funds.

Types of financial investments

In the securities market, there are direct and portfolio investment. The first term defines the investment of capital in an enterprise. The second means the purchase of various assets.

According to the source of issue, securities are federal and corporate. In the first case, the issuer is the state, in the second - the organization.

Investments can be individual or collective. Joint investment means the purchase of securities of special funds. Individual involves the independent purchase of securities.

How and in what securities to invest: step by step instructions

First you need to decide on the amount of investment and outline the possible income. Then decide what tools you can use to achieve your goal.

It is better to buy shares for a period of more than three years and not sell until certain goals are achieved (pension, education, real estate). Or don't sell at all. The most promising option is to acquire not one, but several assets. According to statistics, an investment portfolio performs better than a single security.

In the bond market, federal and debt securities of reliable organizations are popular. They can also be used when building a portfolio.

Investment strategies

Depending on the goals, degree of risk, planned profit, investors use the following strategies:

• passive investment. It is common abroad, where ETFs are bought and the investor receives a deeply diversified set of securities. The risk is minimal, but transactions are carried out through foreign brokers in foreign currency and require significant amounts;
• profitable. In unstable moments, assets are redistributed to investment portfolio. Selling bonds and buying cheap stocks with promising dividend yields. This is done not for the subsequent sale of shares at a high price, but to receive dividends;
• cost. Undervalued shares are bought with the aim of subsequent sale at a higher price;
• growth strategy. Money is invested in stocks during the period of growth. Such securities are often overvalued by the stock exchange. They are growing faster than the business of the enterprises themselves is developing. More risky strategy than the previous ones;
• speculative. Most speculators lose money. Only 2% of traders have a positive balance.

The choice of exchange instruments depends on the type of strategy.

Formation of an investment portfolio

When forming a package of the Central Bank, it is better to discard a speculative strategy that brings losses. The growth strategy is also the best option, since few investors can successfully determine the exit point.

Cost and dividend strategies work. The difference is only in investment risks. There are enough oversold stocks on the stock exchange that fit both strategies. Sometimes it pays to wait and choose when stocks reach low levels.

With a passive strategy, the investor does not have to puzzle over the choice of stocks and bonds. He buys the entire set of securities in the form of stock indices: S&P 500 (America), Nikkei 225 (Japan), RTS (Russia).

Statistics show that over long periods of time (more than 5 years), indices outperform investors working with a portfolio of securities.

Professional help

It is impossible to trade on the stock market without a broker. He selects useful materials, suggests strategies, helps with the choice of tools. The rating of reliable companies looks like this:

Reliable Russian brokers

Alternatives

Derivatives can become a way to invest in the Central Bank. These are futures:

• on shares of companies;
• for stock indices;
• for commodity contracts.

But futures are risky assets and have a limited circulation period (from 1 to 3 months).

As an alternative to investing in securities, one can consider the acquisition of housing. But recently real estate has hardly grown in price, and it is difficult to make money here.

Buying gold does not guarantee profit either: metal prices are unstable. Art and antiquities are traditionally considered an option for investment. But antiques require specific knowledge and impressive money.

The goal of any investor in the market is to increase the invested capital. If the profit cannot be obtained within a certain period, make every effort not to lose the funds invested in shares or financial instruments. One of the main rules of a stock investor is to buy low today, sell high tomorrow. Investing in securities always comes with risks. How to assess its limits for beginners, what assessment to make - we will consider in more detail in this article.

Objectives of investments in securities

What are the goals of the investor? How to choose an effective sales strategy and not lose investments in the portfolio. Find the best synergy for you.

Over the past 5 years, the NASDAQ Computer Composite Stock Index has increased by 146.46%. All high-tech companies trade in this category. The index is tied to a certain value of the price of all shares, reduced to the number of largest companies.

The S&P 500 grew 61.81% from 2013 to 2018. The index combines quotes of the 500 largest companies in the world with the largest capitalization (the total value of all assets).

If the two selected indexes show stable growth, then what is the goal of the investor? Wouldn't it be easier to finance the purchase of securities linked to companies included in these ratings?

• In 2005, financial conglomerate Lehman Brothers was the leader financial market. In 2006 alone, the group posted a profit in excess of $45 billion. After only 2.5 years, the company went bankrupt;
• In 2007, on the front cover of Forbes magazine, an article titled “Nokia - 1 billion users. Can anyone surpass the giant king mobile phones? Just a year later, Apple presents its gravedigger Nokia - the first iPhone model. In 2009, the company can no longer compete in the mobile phone market. In 2012, the headquarters of the former tech giant will be sold at auction for $170 million;
• In early 2008, the Beas Stearns investment bank collapsed. The two investment companies that invested in buying shares in Bear Stearns lost a combined $1.6 billion in a few days. Even after the Fed agreed to bail out an investment bank, its stock plunged 47% the next day. As a result, at the end of March 2008, Bear Stearns was bought out for $236.2 million.

Shares of leading companies may rise, but at the most unexpected moment they can expect a loud fall. Bankruptcy doesn't have to last for years. Everything happens, if not in a matter of weeks, then definitely in a few months.

The purpose of investing in securities is to anticipate a fall and minimize risks. Even if the market shows steady growth and stock indices are in the green corridor.

To make it clearer, let's break it down into groups:

1. Maintenance high level profitability. The calculation formula is very simple: The total value of all shares at the end of the reporting period minus the price of all shares purchased at the beginning of the investment period. This difference is divided by the value of all shares of the initial period. Investing only in successful companies is unprofitable. You are not the only investor who sees the growth and safety of investments. A simple rule works - a lot of offers, a small price. The best strategy is to invest in securities, "black horses" - companies that have just entered the market. The goal of the investor is to determine their potential, choose the right capitalization forecast and get high returns. Such a strategy is the most risky - but also the most successful for the investor;

1. Portfolio diversification. The goal is to preserve and increase the invested capital. To do this, the investor hedges his risks. Those. determines its own investment strategy, choosing the safest path. As a rule, 50% of investments are invested in companies with sustainable growth, 20% in the segment showing the highest growth, another 30% in risky securities - companies with great potential. This division is very conditional. Each hedge fund or investor independently calculates the strategy. The final profitability depends on the choice of the goal of portfolio diversification. The higher the yield, the more the trader will be able to attract customers to buy securities of companies;
2. Liquidity level. The quotation of the company's shares must be confirmed by stable demand. Those. at any time you can sell and get money for it. Companies with low liquidity are not needed by the investor. Why do you need an asset that will not make a profit? See above the basic rule of the investor - buy now low to sell at any time high. Take profit and exit the trade. The most liquid portfolio is government treasury bonds. The state guarantees an annual coupon - the base rate of return. The investor can be sure that this is the income he will receive for the specified period.

We summarize the three main objectives of the investor:

1. Ensuring high profitability;
2. Investing in risky (but with a high growth rate) and risk-free securities;
3. Control of liquidity of investments in securities.

Benefits of investing in securities

Why securities are one of the safest and most sustainable growth assets. But not the most profitable debt instrument.

To be listed on the NYSE (New York Stock Exchange), a company must be listed. Those. inclusion of shares in the application for circulation and free purchase and sale. Each exchange defines its own rules for trading and the availability of certain capital.

For the NYSE, these rules are:

1. Income component:

• EBITDA Profit $2.5 million;
• Revenue before tax for the previous two years is at least $2 million;

1. Money:

• The material value of all assets is not less than 18 million dollars;
• Approximately 2,000 shareholders must own 100 shares of a listed company.
• For foreign companies wishing to conduct an IPO on the NYSE, the total value of all assets must exceed $100 million.

If a company does not meet the above requirements, it will not be able to place outstanding shares. These are simple conditions, we do not disclose a large amount of the quality of the company's assets and documents.

Why such harsh conditions?

A company that goes public must already be a successful business. An investor does not invest in a startup, but in a successful enterprise.

We highlight the first advantage - long-term

This applies not only to equity capital, but also to derivative financial instruments.

If Joint-Stock Company shows losses, delisting from the exchange will be performed.

The NYSE puts forward the following conditions:

• The number of persons owning 100 shares decreased by less than 1200 people;
• The total market value of all shares (capitalization of the company) decreased by less than $5 million.

The exchange makes sure that companies showing a loss are delisted.

The second advantage is longevity.

As noted above, a successful business enters the market. Therefore, the company needs a long-term investment. The issue of securities is designed for a long-term, not a one-time period. In addition, listing on the stock exchange opens up an unlimited number of investors.

The third advantage is the attitude of financial institutions

A successful listing of securities on the stock exchange implies the trust of financial institutions and hedge funds. You can invest in a company with positive dynamics. It is much cheaper than to attract bank borrowed capital. The condition is a transparent report to shareholders and the payment of dividends. Losses or non-transparent reporting policies harm reputation.

The fourth advantage is stimulating your own employees

• Receipt quarterly bonus;
• Possibility to purchase the allocated volume of shares of companies at the market price.
• The vast majority of award recipients invest in the purchase of shares, with the expectation that the amount of investments will increase every year. The premium is static, its investment in securities is dynamic. In 2012, the price per Tesla share was $22.9. As of October 12, 2018 - $258.78. For 6 years - a tenfold increase. No financial institution will offer this level of return.

The fifth advantage of a security is the absence of a guarantee obligation

This means that the paper can be sold at any time without an exact time commitment. The owner of the security has fulfilled the obligation from the moment of its purchase - investing funds. Securities circulating on stock exchanges in the majority are not registered and can be easily transferred by inheritance or other transactions to third parties. Moreover, they can be the subject of a pledge or surety.

Evaluation of the effectiveness of investments in securities

Control over the risk and profitability of stocks must be carried out constantly. Market quotes change every 10 minutes.

The portfolio of securities is in constant dynamics. The investor hedges the risks. Invests in securities of various types and values. Evaluation of investment efficiency is one of the stages of the investment process. In fact, the investor is parting with money now in order to get more from the invested capital in a year or two. Since the market is constantly changing in price, it is necessary to constantly monitor the changes that occur on it.

What is included in this process?

1. Stated to investors or clients requirements for profitability. If its value falls - the adoption of measures to sell, if the value grows and the prospect of increasing income is visible - an increase in the value of the portfolio;
2. Portfolio diversification. During the period of market growth, the emphasis can be placed on young companies in a promising sector of the economy. During the fall - investments can be directed to the purchase of treasury bills. When securities fall in value, the government always guarantees coupon payments on bonds and bills. This is the best "airbag".

Risks of investing in securities

Securities are not the most risky segment, but they are not distinguished by a driver for making profit in invested assets.

The securities market does not promise such returns as compared to other derivative financial instruments. For example, in July 2016, the price was $666.2, after only a year and a half, its price was already quoted on the market at around $13.5 thousand. Not a single security for such a period of time showed an increase in yield in the amount of thousandths.

Yes, cryptocurrency is not a security. However, the US Securities and Exchange Commission (SEC) just a few years ago tried to ignore this phenomenon. Now the trend is reversed.

If we are considering the developed countries with stock trading, they do not carry political risks. Please note that exchanges are popular with stable political processes (Germany, Singapore, Japan, UK and USA).

This implies the following risk - currency or inflation

Investments in countries with stable financial policies will not bring risk when investing in a security. If you decide to invest on regional exchanges, it is quite obvious that this risk increases many times over.

Annual inflation in the US is 2.4%, in Brazil 7.3%, in Venezuela 24,500%. The less developed financial or political system– the higher the risk of inflationary expectations. Countries with a stable system will be covered by a wave of inflation only if an international crisis unfolds. The cyclical nature of such crises is once every 10-15 years. The last one happened in 2007-2009.

According to analysts, the next one is possible in the next few years. The crisis is followed by rapid growth. This happens at almost all stages of development. In 2008 the index Dow Jones amounted to 11,422 points (right before the start of the crisis of mortgage bonds), on October 12, 2018 - 25,339 points.