How To Make Money On The Stock Market

Table of contents:

How To Make Money On The Stock Market
How To Make Money On The Stock Market

Video: How To Make Money On The Stock Market

Video: How To Make Money On The Stock Market
Video: How To Make $500+ a Day Trading Stocks ...Stock Market For Beginners 2020 2024, December
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The question "how to invest money correctly" worries many people. Indeed, well-being in the present and in the future depends on the correct management of money. Of course, you can put your money into a bank account and withdraw it a year later with a small increase, but if you calculate how much inflation will “eat” your savings in a year, you will understand that you will get exactly as much as you put in. Gambling on the stock market is a risky way, but if you learn how to properly invest your money in securities, then the profit from them will be incomparably greater than with a regular deposit.

Trading in securities is a risky but profitable business
Trading in securities is a risky but profitable business

Instructions

Step 1

What is the risk? Everything is clear with the deposit: if the bank goes bankrupt, then thanks to the insurance system, the state will return your deposit to you. It's different with stocks. You may or may not get a profit, moreover, you can play at a loss. In a word: the greater the risk, the greater the income.

Step 2

It is the least risky to buy blue-chip securities. These are the companies that are least exposed to any market fluctuations. These are companies such as Sberbank, Gazprom, Lukoil, RAO UES of Russia. There are also stable companies in the regions, but in order to buy securities of a not very well-known concern, you need to have reliable information about its activities.

Step 3

Why Buy Blue Chip Stocks? Because at any time you can quickly sell them with minimal losses for yourself.

Step 4

As for the currency market, it is recommended at first to play on slow currency pairs. For example, Euro-pound or Euro-franc. Of course, the income you will receive is not very large, but it is also unlikely that you will burn out. When working with the so-called "aggressive currency pairs": pound-Canadian dollar, pound-yen and so on, the rate fluctuations are much greater and it will be almost impossible for a novice player to keep track of this. But with a favorable scenario and prompt response, you can get an income of up to 180% per year (respectively, a profit of 80%).

Step 5

When starting to work in the stock market, one should acquire basic economic knowledge, learn to analyze the market and make decisions. Few people will be able to learn how to correctly predict the exchange rates of securities or currencies. More often than not, rushing headlong into the maelstrom of trade, people lose both money and interest in further gambling.

Step 6

Another rule of thumb is to never throw all your money into buying stocks. Divide them into 3-4 parts, of which you will invest 1 part in the bank, part 2 in currency, part 3 in the state. Use bonds and only 4 part to buy securities. Moreover, this amount must be divided between the securities of different companies, not only Russian, but also foreign ones. Let these companies be from different industries in case of a crisis in one of them. By acting in this way, you will reliably protect yourself from complete collapse.

Step 7

The question arises: "how much money do you need to start playing on the stock exchange?" Start with a few thousand rubles to understand what kind of work it is. Gradually gaining experience, you will gradually replenish your account and increase your turnover.

Step 8

A very valuable skill when playing the stock market is the correct analysis of the market. Fundamental analysis is based on assessing the real value of a stock. To do this, add up all assets, taking into account deferred income, calculate the capitalization of the issuer of shares and divide the amount received by the number of issued shares. As a result, they get the real value of the share. Comparing this value with the market value, they decide whether to buy a share or sell it. Technical analysis is based on the study of the stock price chart. This method is very simple and is used by most of the stock market participants.

Step 9

And in conclusion, the very rule of working on the stock exchange: never take big risks. All the most successful players adhere to this principle.

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