How to make money on the currency exchange. How to make money on the stock exchange

Date of writing: 31.10.2023

Reading time: 25 minutes

I recently started buying and selling shares on the stock exchange (BCS through a bank). Is it possible to earn good money from this (500,000 rubles), starting with small money (5,000 rubles), and over what period? Give examples from life.

Andrey V.

Yes, you can. Here are examples from life. Please note that these are returns in retrospect, that is, in the past. No one ever knows what will happen in the future.

Artem Kuroptev

private investor

50 years and S&P 500

Fifty years will be required to increase capital by a hundredfold with an average annual growth rate of 9.7%, taking into account compound interest. This is precisely the profitability shown by the index of shares of the five hundred largest American companies S&P 500 for the period from 1965 to 2016.

It is very easy to invest in stock indices through shares of ETF funds or mutual fund shares. Almost no special knowledge or experience is required.

25 years and Buffett

Twenty-five years are needed for a hundredfold increase in capital with an average annual return of 20.8%. This is exactly the kind of return that the iconic American investor Warren Buffett showed for the period from 1965 to 2016.

I don't know how to become Warren Buffett, whether Buffett's holding company Berkshire Hathaway will perform well in the future, or whether its stock is worth buying.

3 years and the Moscow Exchange competition

For the period from September 15 to December 15, 2016, the absolute profitability of the winner of the “Best Private Investor 2016” competition on the Moscow Exchange amounted to 1132.59%. In three months, the winner of the competition under the nickname pavel turned fifty thousand rubles into six hundred. On one day of the competition, pavel made 1103 transactions. At this rate, it would take less than 3 years to turn five thousand into five hundred. But you should not take the results of the LCI literally.

First, three-month results do not guarantee repeat success over a longer period of time. Secondly, there is an opinion - and I share it - that the “Best Private Investor” is a competition between brokerage companies and the professional teams working with them that automate trading strategies. Simply put, a battle of robots, infrastructure capabilities and insight, with a dose of chance. The results of the competition have the same relation to investments and five thousand rubles as the Formula 1 race has to do with riding a trolley in a supermarket.

What to do?

I think at the first stage it is worth using interest on bank deposits as a guide when working with financial instruments. This will provide a basis for decision-making and will protect you from illusions.

For example:

If I buy these bonds, then within two years I will receive 8% per annum instead of 6.5% on the deposit. If I need money before the maturity date, then there is a chance that I can only sell the bonds at a loss. I understand the risk and am ready to buy bonds for such and such an amount.

If I buy these shares, then perhaps I will receive a dividend yield of 8% instead of 6.5% on the deposit. Whether the shares will rise in price or fall - that’s what my grandmother said in two. Therefore, I will buy shares with a smaller portion of my savings.

Sometimes trading with leverage seems like a way to make quick money. This is a long conversation, and I will prepare a separate article about it. Thanks for the question!

Nothing is impossible

If you have a question about personal finance, luxury purchases or family budgeting, write to: [email protected]. We will answer the most interesting questions in the magazine.

Trading is the process of trading activity on the stock exchange. The goal is to make a profit from transactions with various financial instruments: company shares, currencies, futures. This also includes forex trading. Online trading is a good start for those who want to receive dividends from buying/selling securities.

The trading process goes through a broker - a link between the trader and the exchange. For intermediary activities he is awarded a certain percentage of commission. Anyone who has decided to try their hand at stock trading can, subject to a number of conditions, join electronic trading from their computer.

This article gives a general understanding of how a beginner can make money on the stock exchange at home. You will begin to seriously study the specifics of trading when you decide that the business is interesting and will bring profit in the future.

Trading through a broker frees you from difficult conditions and costly investments for a beginner. To be able to trade on the exchange, you must do the following:

obtain a license to carry out activities with preliminary completion of a special training course;
pay the entrance fee. Some exchanges allow the client to trade after making a fixed amount - a contribution, the amount of which reaches three million rubles (MICEX);
purchase an expensive licensed program on the basis of which the exchange Internet resource operates.

If you cannot spend a lot of money on a license and entry fees to work on the stock exchange without intermediaries, turn to the services of one of the many brokerage companies. With their help, you will gain access to the resource and make financial transactions yourself.

Brokerage companies with the possibility of trading via the Internet

There are many exchange platforms online. Reliable ones - Finam, Uralsib, VTB, Alfa Capital, Troika Dialog. These are major players who enjoy the trust of customers. Before admission to real trading, the brokerage company offers to undergo training - and you will be ready to independently use the tools of the trading program.

The opening hours of stock exchanges vary depending on which trading exchange they are linked to. Therefore, before deciding to choose an online resource, decide on a trading time that is convenient for you. Consider the size of the brokerage company's commission; this will determine how much you will ultimately earn.

Stock trading for beginners

Volatility, or price change

Volatility is an indicator of changes in the price of a financial instrument. The stock market is characterized by low volatility, when the value of shares changes slightly, rising and falling within one trading day. It is not easy to make money with such a pattern of stock price fluctuations.

A large amplitude of exchange rate changes is called “high volatility.”

An experienced trader remembers that for each purchase and sale on the exchange, the broker charges a commission, which covers the profit received, as is the case with low volatility. Therefore, wait until the stock has significantly increased in price and act. If trading volatility is low, do not count on significant profits.

What do you do to make money on the stock exchange?

A novice trader works taking into account all the circumstances that arise on the site on a specific trading day. To do this, you need to carefully monitor the actions of experienced players, analyze rates, study information on global financial markets, and be aware of political events - they play a huge role in movements on the stock exchanges. Follow a specific strategy:

work with a broker who charges a low percentage for services;
trade with high volatility.

As you gain experience in this area, learn to take into account all the nuances of market strategy, and it will become easy to assess your trading position. An intuitive feeling will appear. Such players act riskily, but time passes and it becomes clear that the steps were justified.

Choosing a brokerage company

To decide on an intermediary, study information about brokers operating in your region. And also find out commission rates and terms of service.

Invite brokerage houses to write down an example point by point with the same initial conditions and evaluate the final results of their calculations: estimated income, commissions, net profit from the purchase/sale of shares (currency). The broker's credibility, market experience and traders' recommendations will help you make the right choice.

How difficult is it to start working on the stock exchange?

Trading on stock markets does not instantly bring satisfaction and positive results. Many cannot stand it emotionally and psychologically; for others, all this seems technically difficult. According to statistics, one or two out of ten people join the process of stock trading - those who like it.

For trading on the site to bring positive results, you must:

Familiarize yourself with theoretical material on the topic of economics and finance.
During the trading session, keep yourself in control and be able to manage your psycho-emotional state.
Constantly gain work experience.

With a detailed examination of these points, it will become clear what to do in order to successfully trade on the stock market.

Theoretical knowledge

This information includes basic trading information. Having mastered them, you will understand how complex financial processes occur in the economy. This will be useful for an objective assessment of the market situation. Economic terms will become more than empty words - stocks, forex, options, volatility, liquidity, trend. These concepts are important to everyone who is going to engage in stock trading.

The ability to read charts, analyze financial news, respond in a timely manner to events in the country and the world (changes in oil prices, currency fluctuations) - all this will help you choose a strategy and tactics for playing on the stock exchange and will be the key to success in the future. Below are examples of possible daily trading charts.

Uptrend

An uptrend chart shows that prices have risen. According to the rules of the exchange, when the value of shares or currencies rises, you must buy. If you manage to make a purchase at the beginning of the trend, then after a while, having reached the peak, the price will begin to decline, and you will sell the shares (currency) and make a profit.

Downtrend

A downtrend chart shows that prices are declining. Wait for the bottom point, and after the reversal, buy assets. When shares continue to fall in price, the practice is to purchase them on credit from a broker and sell them at the current price. When it drops even lower, they purchase shares to return to the broker. This is how profit is formed in a downward trend.

Sideways trend, or sideways trend

The sideways chart shows that the market is in a stage of uncertainty. There is no obvious movement of the stock either up or down. Players choose a line of strategy and act according to this plan. Some wait for the bottom to buy assets at low prices, while others manage to sell them at a high price during a downward trend. And still others manage to make money on the sidelines.

Stop loss. How it works

When trading, stick to your plan and don’t deviate from it. Explore the capabilities of the trading program and use a set of software exchange tools. Know how to analyze, do not be afraid to act.

For those who want to explore all the possibilities of the resource and want to know how to make money on the stock exchange on the Internet when the user is not at work, there is a special function - stop loss. It helps a trader reduce losses when stocks fall and make money on their growth when it is not possible to constantly be at the computer.

The user sets a stop loss, that is, fixes the price. When the shares begin to fall in the absence of the player, when this figure is reached, the stop loss will be triggered, and they will be sold at the price fixed by the trader, which is high compared to the prices when the shares collapsed. This feature helps save money and reduce losses.

Psychology of stock trading

In terms of emotionality, trading on the stock exchange is similar to gambling. But it seems so to a beginner - it is difficult for him to refrain from rash actions at the decisive moment, when he needs to weigh everything. Unable to withstand the intensity of trading, they buy when they need to sell and sell when the stock has not risen in price. Such novice traders are left with an empty wallet and leave the site.

Useful experience for making money on the stock exchange

A trader’s work experience consists of training time, acquiring initial skills and actual full-time work. Everyone has their own time frame for success. Some take years to understand all the intricacies, while others earn decent money at the initial stage.

Constant improvement of skills, study of financial science, interest in stock exchange news, orientation in the world of stocks and currencies will bring you closer to positive results. An experienced trader is luckier than a beginner, but there are exceptions that confirm the rules.

It is foolish to expect that success in this area will come overnight. There will be ups and downs, losses and profits. We need to prepare for this.

Which market to work in?

There are three main types of exchange markets:

stock market, trades shares (MICEX).
urgent, specializes in the sale/purchase of futures and options (RTS).
foreign exchange, carries out transactions with dollars, euros, yen.

A potential trader himself decides which exchange will generate income and chooses a suitable platform for trading.

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

Exchanges on the Internet

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

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

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

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

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

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

Successful earnings on the stock exchange require excellent economic knowledge.

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

Definition of financial exchange

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

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

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

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

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

Most beginners choose binary options because they are easier to understand. The size of your profit depends on studying the psychology of stock trading.

Who is a stock trader

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

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

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

Where to find a broker

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

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

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

Operation methods

There are two options for carrying out operations:

investment;
speculation.

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

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

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

How to make money on the stock exchange via the Internet

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

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

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

Further actions

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

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

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

Common Mistakes

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

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

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

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

Many are relying on luck, because some participants managed to get one-time large winnings. There is a streak of luck in life, but new traders are aimed at receiving a stable and regular income, which, according to experienced traders, is not high.

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

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

Trading is one of the very first ways to make money on the Internet.

The main point of this activity is to buy cheaper and sell more expensive.

Accordingly, a trader is a person engaged in trading on the stock exchange, derivatives or foreign exchange market whose goal is to make a profit by buying and selling securities.

The purchase of shares occurs through a broker on. A broker is an intermediary who takes a commission for his services, which is what he lives on.

The stock exchange is a place where buyers and sellers meet. Meetings take place via the Internet, which means you do not need to travel to another city to buy shares.

Why do you have to work through brokers? Because to access the stock exchange you need:

Firstly , have a license, which can be obtained after completing special training.
Secondly , to participate in trading, for example, on the MICEX exchange, where all major stock trading takes place, you will need to make an entrance fee of three million rubles.
Third , you will need special software, which also costs a lot of money.

That is why we are in such demand brokerage services, management companies and other professional market participants. It makes sense to engage in independent trading, bypassing intermediaries, when you have a lot of capital and are ready to do it seriously and professionally.

But if you do not have a lot of money, then you can easily trade in the stock market through one of the many brokers.

Who is the broker?

Among the brokers you can hear such well-known names as Finam, Alfa Capital, Troika Dialog, Uralsib, VTB and others. That is, these are, as a rule, large and serious companies that you can trust.

As a rule, such companies offer various training courses, both paid and free, which you can study on your own in the future. trading at home.

You can trade on the stock exchange at any time convenient for you, although it depends on which exchange you will have to work on.

It is worth noting that you need to be very careful when choosing a broker. The fact is that they make money on commissions, so your potential income or loss depends on the level of commissions.

Volatility

Volatility is a statistical financial indicator characterizing price variability. We consider this parameter together with broker commissions. I specifically focus on this because by understanding this indicator you will be able to understand one of the specifics of trading, which is usually not announced out loud by brokers, but at the same time it can greatly affect your wallet.

To better understand what volatility is, let's look at an example. For example, you decided to become a trader in the stock market and make money by buying and selling shares. is basically a low volatility market. That is, stock prices do not change much during the trading day.

For example, at the beginning of the trading day they cost 100 rubles per share. During the day, the cost increased to 102 rubles, and by the end of the working day it dropped to 97 rubles. In such conditions, it will be very difficult for a trader whose broker charges a high commission to earn anything.

Broker takes commission for each transaction. Let's say that you have 100,000 rubles that you would like to increase through investing. You buy shares of various companies with these shares, for which you pay a commission to the broker.

After some time, you see that the shares have risen in price and you decide to sell them to take profit. But you will also have to pay to sell broker commission. As a result, it may turn out that commissions will eat up your profits.

In order for your trading to be successful, the stock needs to rise in price enough to cover the cost of commissions. But the low volatility of the stock market may not allow you to do this.

Where is the way out?

There may be several ways out in this situation:

Find a broker with low commissions
Trade in a highly volatile market

In fact, there are many more ways out, but I don’t set myself the goal of giving you instructions for trading on the stock exchange. My task is to show you options for making money on the Internet. And it’s up to you to decide where and what you would like to do.

Therefore, let's now get a general idea, and we will study the subtleties in other articles.

Let's return to the two possible scenarios listed above. If the first option is more or less clear, you just need to go through all the brokers that work in your city and compare rates for brokerage services.

I recommend preparing one example for all brokers in advance. That is, you come to the broker and say that you have 100,000 rubles that you are ready to invest in shares. Ask: “What costs will I incur if I buy 5 types of shares of different companies with this money? What expenses will there be if I buy and sell shares worth at least 50,000 rubles every day?”

How difficult is it?

Any new business seems incredibly difficult and incomprehensible to us. But if you understand WHY you need this, then the approach will be completely different.

Now there will be several lessons on motivation, since I want to immediately warn you that 9 out of 10 people who are trying to conquer or, after a couple of months, disappear and never return to this activity.

The thing is, it's really difficult. To make money on the stock exchange you need:

Master theoretical material.
Learn to manage your psychological state.
Get the necessary experience.

Now let's look at each point in more detail.

The theoretical material includes basic financial knowledge that will help you understand what it is, etc.

You will also need to study technical and fundamental analysis. This knowledge will help you create your own work strategy, with the help of which you will achieve success.

Why do you need to study all this wisdom? The fact is that trading the stock market largely comes down to reading charts and correctly interpreting financial news.

All traders work according to the same laws.

Example 1. Uptrend

This chart tells us that the market is currently in an upward trend. This means prices are rising. That is, we now need to buy. The shares or currency (depending on what we buy) will rise after some time and we can make a profit by selling them.

Example 2. Downtrend

This chart tells us that prices on the market are now falling, so we need to either wait for the trend to reverse when prices begin to rise again, or, if we are confident that share prices will fall further, then borrow shares from our broker so that now sell them, and when prices drop lower, buy them at a reduced price and pay the debt in the form of shares to the broker. This creates profit in a down market.

Example 3. Sidewall

This chart tells us that the market is currently in a sideways trend. This means that there is no pronounced market movement up or down. This usually happens in situations of uncertainty.

Each trader behaves differently in such situations depending on the chosen strategy. Some people wait, trying to catch an upward or downward trend. Some people trade taking advantage of high market volatility.

These were three of the simplest examples of using the ability to read charts.

As you can see, there is nothing complicated here. However, for many beginners, the sight of these graphs causes panic.

Now let's talk about psychological aspects of trading. The fact is that for many beginners, trading on the stock exchange is primarily a gambling game like a casino. Why for beginners? Because such players don’t live long. I mean they don't play.

Sooner or later, usually sooner, a moment comes when they spend all their money and never come back.

Many newcomers panic, when the market begins to move down, and along with it, the shares bought by the newcomer begin to move down. When you see your hard-earned money melt away with sweat and blood, you immediately want to hide it in a warm and safe place away from the evil world that is trying to take it for itself.

There are many more examples of what psychological mistakes Beginners admit this, but the situation described above is perhaps the most common. In such situations, it is important not to give in to emotions, but to follow a clearly outlined plan.

Necessary reduce all possible risks, fortunately there are tools for this. For example, you can use stop loss(stop loss) – limiter of losses. It works fully automatically, and even if you are not at the computer monitor, and prices rush down, a stop loss will help you limit losses and preserve your capital.

The meaning of stop losses is simple. For example, you bought shares for 100 rubles. Immediately set stops (short for stop loss) at the level of 80 rubles. This means that if the market goes down and reaches 80 rubles, then your shares will automatically be sold and the money will be withdrawn to your account.

A financial exchange is a type of financial market that practices trading in funds and securities. The latter is what distinguishes the exchange from other markets.

How you can make money from this will be discussed in this article.

Market Participants

If we take into account the specifics of the activity and the pursued goal, then all participants can be divided into 3 categories:

Investors and entrepreneurs that carry out currency exchange for their own needs, purchase and sale of shares and conclusion of futures contracts among themselves. The main goal of any entrepreneur is to run a business; almost none of them seek to make money from changes in exchange rates, but only try to minimize their own risks.
Speculators or traders, setting themselves the only task - to get maximum income from a jump in the exchange rate. At the same time, the trader uses the same tools as an entrepreneur, but does not hold the purchased currency or a block of shares in his hands for a long time, but is constantly engaged in active trading. The activities of a speculator are completely legal; by the way, many modern American businessmen began to earn their millions in a similar way. An experienced trader understands the peculiarities of changes in stock and currency prices, does an excellent job of making a forecast for the future, and knows where to buy cheap and sell assets at high prices. Becoming a traditional trader on the stock exchange is quite difficult; in addition, you need to have considerable start-up capital.
Brokers or intermediaries between traders (or entrepreneurs) and any financial exchange. The fact is that direct work with the stock exchange is available only to banks and large capital holders; everyone else will have to resort to the services of a brokerage company. The main goal of a broker cannot be to make money from a jump in the exchange rate; usually his profits are not affected in any way by the success of his clients. Any such company has a set transaction fee, called a spread.

Basic Concepts

There are several important concepts most often used on exchanges, namely:

A share is an issue-grade security that secures the right of the owner (shareholder) to receive part of the profit of the joint-stock company or the property remaining after the liquidation procedure.
Ask – a price that satisfies the seller.
Bid is the proposed competitive price.
An exchange is a legal entity that guarantees that the organized market for currencies, securities, etc. will function regularly.
Broker is a professional participant in the market who has the right to carry out transactions in relation to securities on the stock exchange in accordance with the client’s instructions.
Bull is a stock exchange player counting on an increase in the value of purchased securities. The name “bull” originated from the desire of such a player to raise the price “by the horns” (from the bottom up, as the animal of the same name does).
An over-the-counter securities market is a market organized by dealers who are members or non-members of a stock exchange. Trading is done via telephone and primarily involves securities of companies that do not have sufficient shares, earnings or shareholders to register on the exchange.
Volatility is a statistical indicator, according to which it is possible to assess the change in market price over time and the degree of this variability.
Collateral is the amount of money that the client deposits into the broker's account when concluding each exchange contract. It serves as a guarantee that the futures contract will be executed.
A gap is a sharp drop in the price of an exchange-traded security, in which the minimum price of the previous exchange day is higher than the maximum price of the current day.
Depository is a professional participant who practices storage of securities certificates and/or accounting and transfer of ownership of this value.
A derivative is an agreement based on the exchange rate of currencies or securities. With its help, the owner can fix a price level that is favorable from his point of view for purchase or sale.
Diversification is the distribution of invested monetary capital between different investment objects in order to reduce the risk of possible loss of capital or income from it.
A dealer is a company, a member of the stock exchange, which is engaged in conducting exchange transactions on its own behalf and for its own funds.
A long position is a period when a security is purchased but not yet sold while playing to increase the price.
Close a position – the moment that completes the settlement of a transaction: repurchase of goods/securities sold or sale of purchased ones.
An application is a standard type of form that indicates consent to buy or sell any financial instrument in accordance with certain conditions contained in this application.
A stock index is a calculated value that reflects the dynamics of the price of a separate group of shares listed on the market.
An insider is a person who, due to his official position or family ties, has access to information about the affairs of the company.
Quotation – establishment of a market rate for a foreign currency, security or commodity on an exchange.
A bear is a player who has sold a security and is waiting for a price drop to buy.
An option is a contract that describes the buyer’s right to purchase or sell an asset at predetermined prices within a certain period or to refuse to do so.
Opening a position is making an initial transaction on the stock exchange.
A breakout is a rapid increase in stock price above a resistance level or a rapid fall below a support level.
Point – the minimum movement of the value of a security/currency.
Session is a separate period of time on an exchange day intended for concluding transactions.

What should a beginner know?

The most important rule that every beginner should remember: the exchange is not roulette; it has a number of mechanisms and rules, which every trader who decides to make a million here should know.

How to understand market movements and analyze stock prices? If you believe the investment strategy, then you need to do the following:

Determine the period of work. Different exchanges have different working hours, therefore, participation in trading also requires a certain time of presence. Transactions related to currency require the greatest amount of time. At the same time, they allow you to get the best results in relation to the time spent.
Learn basic trading terms, have basic chart analysis skills, etc.
Carefully analyze each trading strategy that will be used for trading.
Decide on a reliable broker. Binary options exchanges are not subject to legal regulations, so fraud among brokerage companies is common here. Trading with them leaves no chance for making money.

Exchange selection

Exchanges are different, namely:

Commodity. Here you can buy or sell various goods: precious metals (platinum, gold), agricultural crops (corn, beans, wheat), natural minerals and their derivatives (oil, gasoline), etc. This does not need to be taken literally, that is, grains , purchased in quantities of several tons, do not need to be transported to your barn, you just need to conclude a deal (futures) and make a deposit.
Stock. Here trading of shares, and real assets, is carried out. This means that by purchasing a security of a company, a person becomes its shareholder, acquires the right to receive dividends or can sell them profitably. Such transactions are practiced, for example, by the RTS or MICEX stock exchange.
Futures involving the purchase and sale of futures contracts and options. As with a product, a warranty is provided here.
Foreign exchange. A prominent representative is one that trades in national currency. Purchase and sale is carried out at the market price according to the corresponding exchange rate prevailing on the stock exchange. The idea is that a currency pair purchased at one price can later be sold for much more.

Earning strategies and schemes

To play on the stock exchange, you can use one of the following strategies:

Investment is the simplest and most understandable way. The player purchases shares for a long period of time (12 months or more) and waits for a significant increase in their value. The most important thing is that the investment be entrusted to a reliable company that is included in the category of “blue chips” (the most liquid companies). The main advantage of this strategy is that it insures the owner against possible losses, and the only disadvantage is the low level of income - from 10% to 30% per year.
Speculation– the most popular strategy. Here lies the biggest profit among other types of trading. The acquisition of assets is short-term in nature. In practice, it looks like this: the player borrows a certain number of shares from the broker and quickly sells them. A few hours later, as soon as the price of securities has fallen, he buys back the same number of shares to repay the debt to the broker, and keeps the remaining income for himself.
Arbitration. The essence of this type of trading is to find the difference between assets that have at least some connection with each other, and then enter into a contract to receive this profit. The main advantage of arbitration lies in the absence of risk, but the disadvantage is the complexity of the process itself, which requires the player to constantly analyze the market, look for “price” scissors, enter into counter contracts at lightning speed, etc.

Is it possible to earn money without investments?

You can start making money on the stock exchange without investments. There is even a special step-by-step instruction for this, ensuring a painless start to working on Forex. The new service “invest from forex start” is a unique chance for a novice player.

To do this, you need to perform the following steps sequentially:

Understand the world of Forex a little in order to be able to profitably invest the funds that the above-described program allocates for starting. For example, you can read free educational materials, which are available in large quantities from any decent broker.
Now you can move on to specific actions: creating a trading account on the FxStart website. The “Investments” section contains detailed information about the conditions of the program, as well as where you can apply for participation. The essence of the work is that at the first level the player is credited with 100 USD to carry out trading operations in order to increase profits and prevent drawdowns. After surviving 2 weeks and earning at least 1 USD, the user is transferred to level 2, which involves an increase in the amount of funds and the percentage of profit. Thus, you can reach level 5, have 20,000 USD and receive 50% of the income.
After six months of painstaking work (without investing a single ruble), the player consistently earns several dollars a day. Quite good.
When the income exceeds 100 thousand rubles. per month, you can think about creating your own diversified investment portfolio, insuring against the consequences of global financial crises, unexpected natural disasters and other situations that could lead to unexpected fluctuations in the stock exchange.

Almost all people are interested in additional income. One way is to trade on the stock exchange. To many, this activity seems incomprehensible, fantastic and very difficult. But any complex process can be broken down into several successive simple steps to achieve what you want.

This income is available to anyone, but not everyone knows about the following subtleties:

It is imperative to monitor stock exchange news and view analytics;
work cannot begin until an account is opened with a brokerage company providing market access services;
it is necessary to attend many different educational events;
sign up for a special course on stock trading.

About the most common mistakes

Any trader is not immune from mistakes, but the following are made with enviable regularity:

no trading plan;
there is no money management system;
an insignificant profit was made against the background of significant losses;
there is excessive trading of funds deposited in the account;
lack of patience.

How much can you earn?

Many (especially beginners) wonder about the average income that can be obtained by trading on the stock exchange.

Here is an approximate list of profits that experienced players receive annually for successful games on different sites:

20-50% the stock market went to speculators (the use of margin lending allows you to increase profits up to 100%);
50-200% can offer players a derivatives market that practices futures and options trading;
30-50% — arbitration income;
50-500% can be purchased by a participant in games on the Forex currency exchange.

Video about stock trading

From the following video you can learn about where a newbie should start in the stock market: