The stock market (securities market) and the stock exchange - what is it and how to start trading + rating TOP-4 of the best stock market brokers in Russia

Today's publication is dedicated to stock market (securities market) and stock exchange. Contrary to the opinion of many, this is not the same as Forex. About what Forex is and how to make money on it, we wrote in the last issue.

Readers learn from today's article:

• What is the stock market and stock exchange;
• Which world exchanges are the largest;
• What is traded on the stock exchange;
• Ways to make money in the stock market;
• As a beginner, start trading in the securities market;
• Which brokers in Russia are the best.

At the end of the publication are given professional advicethat will help beginners to trade successfully. It will also be useful for readers to familiarize themselves with the answers to the most popular questions.

The publication will be interesting both for beginners on the stock exchange, and those who already have some knowledge in this area. Remember: time is money! So do not waste a minute, rather start reading the article!

What is the stock market (or the securities market), what are the stock exchanges, how and where to start trading in the stock market for a beginner - more about this and read in this article

1. What is the stock market - a review of the concept + principle of operation 📈

Stock market otherwise called securities market. It is an important part of the financial market, because it is here that all existing types of securities are traded.

In the course of the company’s vigorous activity, when its development takes place, there will inevitably come a moment when own funds are already insufficient. In order not to stop there, management will have to find options for attracting additional money.

Usually for these purposes use:

• Bank loan - The most popular way to get money.
• Issue of shares. They relate to equity securities. When the shares are sold, the company issuing them will receive cash. At the same time, the investor who buys the shares receives a small part of the company. They do not cause an obligation to return the money. But the investor can benefit from the shares as dividendsas well as opportunities to participate in the life of the company. In addition, it is possible to sell shares when their value becomes higher than that which was at the time of purchase, thereby earning income.
• Bond issue - debt securities. In other words, the organization borrows funds from investors, which it subsequently undertakes to return with interest.

Options for attracting finance associated with the issuance of securities are carried out through stock market. It turns out that it is a place where money is attracted and redistributed among companies, economic sectors, market participants and other securities market entities.

1.1. Securities Market Participants

The stock market is based on its participants. They can be classified based on various characteristics. Let us consider in more detail what they are.

1) Intermarket stock market participants

Intermarket call those participants engaged in servicing or working simultaneously in various markets, one of which is stock.

Such participants include the owners of funds investing in various assets: not only in paper, but also in real estate, currencies and others.

In addition, intermarket participants are agencies that provide information, give advice, make ratings, and other professionals working in several different markets at once.

2) Intramarket participants

Concerning intramarket, such participants, in contrast, use exclusively or predominantly securities in their activities.

There are intra-market participants professional and unprofessional.

Non-professional members - these are issuers, as well as investors who invest all the money intended for investments or part of them in securities.

Professional securities market participants carry out certain functions in the stock market. These activities may only be conducted upon receipt of licenses.

Among the professional participants are:

• traders who trade professionally;
• organizations creating infrastructure.

The latter carry out certain types of activities on the securities market:

• brokers engage in securities transactions (buying and selling) at the expense and in the interests of their customers;
• dealers conclude transactions with stock market instruments at their own expense and on their own behalf;
• management companies are engaged in the allocation of funds transferred to them by customers for profit;
• registrars maintain a list of persons holding securities (the so-called register);
• depositories carry out storage and accounting;
• clearing companies carry out calculations;
• organizers create favorable conditions for operations (eg, exchange).

1.2. Securities Market Structure

By the way, you can trade financial assets (currency, stocks, cryptocurrency) directly on the stock exchange. The main thing is to choose a reliable broker. One of the best is this brokerage company.

The stock market is a complex structure with a large number of different qualities. That is why you should study the securities market from various angles.

For ease of perception, various structures are summarized in a table:

All presented types of markets are interconnected. So, the majority of securities are traded on stock market. It always refers to organized. In contrast to this, over the counter happens both organized and unorganized.

In modern developed countries there is no unorganized market. Organized is presented exchanges, as well as various electronic trading systems, which represent the OTC market.

✏ What is a stock exchange?

Stock Exchange is an organization that creates the necessary conditions for concluding transactions in the securities market.

There are several distinguishing characteristics of a computerized market:

1. The trading process is automated and continuous;
2. Pricing is not public;
3. Trading places are located where the buyer and seller are;
4. Parties to the transaction are not physically found anywhere.

The spot market occupies a large part of the securities market. Derivatives are most often sold on an emergency basis. It is divided into:

• monetary - the term of instruments circulating here does not exceed a year, checks, bills of exchange, and also short-term bonds are used;
• investment or capital market - instruments are traded for more than a year (stocks, medium and long-term bonds).

1.3. Securities Market Functions

The stock market performs a number of important functions in the economy. They are divided into 2 large groups - general market and specific.

General market functions characteristic of any market. These include:

1. Pricing - thanks to the interaction of a sufficiently large number of participants, the demand and supply for securities are formed. When an equilibrium is established between them, value is formed.
2. Accounting consists in obligatory reflection of circulating securities in registers; professional participants must be registered, have a license, pass certification; operations are recorded in protocols and contracts. Moreover, thanks to the accounting function, the state has the ability to exercise control over activities in the stock market.
3. a commercial represents an opportunity to profit from operations with securities.
4. Information function means that the market operates on the principle of maximum transparency of information. Participants in operations can get all the necessary information.
5. Regulatory - Operations help to influence the economies of countries, as well as various processes in society.

Specific functions of the stock market:

1. Hedging or, more simply, risk insurance, is due to the ability to distribute risks. The fact is that various instruments are being traded on the market, the level of risk and potential profitability of which are not the same. As a result, both conservative and aggressive investors can choose the right tool for them. First prefer low-risk, but the income from investing in them is much lower. Aggressive investors choose tools that maximize profits. Naturally, in doing so they take a greater risk. Moreover, the variety of instruments allows each investor to distribute risks in a manner suitable to him.
2. Redistribution function relates primarily to the primary market. Here, financial resources are allocated for the purchase of securities. The result is the transfer of money from the field of accumulation to the production sphere. Nevertheless, the secondary market is also involved in the distribution. Here the securities, continuing circulation, are resold. Naturally, the price of the most popular of them is growing, investors are getting rid of unpromising ones. As a result, there is an inflow of funds in some sectors and withdrawal from others. This allows you to distribute money depending on the needs of the economy.

Thus, the stock market is an indispensable part of the economy. It is diverse, includes a large number of participants and performs a number of critical functions.

The largest stock exchanges in the world (by capitalization) - London, New York (American), Tokyo and others

2. World stock exchanges - an overview of the TOP 7 largest trading floors 📊

In the modern world there are a huge number of stock exchanges. Their number reaches several hundred. However, not all of them are popular among investors.

In order to earn a good reputation, the exchange must not only be a reliable intermediary, but also serve customers at the highest level, and also provide the maximum number of instruments.

Specialists distinguish several world exchanges, which, thanks to their maximum efficiency for many years, have earned authority among a huge number of market participants.

1) New York Stock Exchange (NYSE Euronext)

She is popular all over the world. Today, this exchange is one of the most influential in the world and is in first place in world ratings. This exchange was formed not so long ago - in 2007 year. But the creation was carried out through the merger of two major world exchanges - Nyse from Euronext. The resulting exchange eventually took over the full power and reputation of the two exchanges.

The influence of the New York Stock Exchange can be judged by some data:

• securities of a huge number of issuers are circulating on it - today there are more than 3,000;
• capitalization is almost sixteen trillion dollars;
• The New York Stock Exchange manages the exchanges of many major world cities, including Lisbon, London, Paris.

2) American Stock Exchange NASDAQ (Nasdak)

Strives to be as close to the leader as possible. Today, the NASDAQ capitalization is in second place among world exchanges. Officially, the work of the exchange began in 1971 year, however, in fact, its history began earlier - after signing "Act Maloney". It was at this time that an association of dealers was formed for the first time in the world.

The peculiarity of this exchange is the uniqueness of the trading system. For the execution of transactions there is a certain competition. In addition, each market maker has a certain amount of securities. Their functions include helping maintain the liquidity of their shares, as well as setting their value.

In order to increase the influence of NASDAQ twice tried to acquire London stock exchange, but unsuccessfully. To enter the European market, the stock exchange had to buy over seventy percent of the shares OMX Group - The largest business association in Sweden.

3) Tokyo Stock Exchange (Tokyo Stock Exchange, TSE)

This exchange is one of the oldest and largest. The year of her foundation is considered 1878. During the time that has passed since that moment, the exchange has managed to reach third place in terms of capitalization.

At the moment, securities of Japanese companies, banks, as well as foreign issuers are circulating in Tokyo. Their number now exceeds 2,300. At the same time, more than eighty percent of the turnover of Japanese exchanges passes through Tokyo.

Three types of participants participate in the auction:

1. intermediaries called saytori;
2. regular companies;
3. binding (special) companies.

4) The London Stock Exchange (London Stock Exchange, LSE)

AT 1570 A royal adviser named Thomas Gresh established the London Stock Exchange. It is a joint stock company.

For the most part, local stocks are traded here. They are divided into several groups, the main of which are:

• main;
• alternative;
• securities market (here trade is carried out by shares of high-tech companies).

An important feature of the London Stock Exchange is that it is open to international firms. Moreover, over 50% shares traded here are owned by foreign companies. In addition to stocks, options and futures are also sold here. The capitalization of the exchange today is more than two trillion.

On a regular basis, the exchange calculates its own index - FTSE100. His analysis allows us to assess how successful the English economy is.

5) Shanghai Stock Exchange (Shanghai Stock Exchange, SSE)

Today it is the largest of the exchanges located in China. According to the level of capitalization, specialists usually determine her fifth place.

Shanghai Exchange established in nineteenth century. Then foreigners were forbidden to purchase shares of Chinese companies. To circumvent this limitation in some way, Chinese businessmen organized the Shanghai Brokers Association.

As a result, through 10 For years, the government has allowed trading in Chinese shares. This allowed the exchange to function and develop normally.

On a modern Shanghai stock exchange traded shares of companies, exchange-traded investment funds, bonds.

The main requirement for companies to enter the stock exchange is to conduct business not less than 3 years.

Using all instruments traded on the exchange, the index is calculated SSE Composite. Its value at the level is taken as the base 100. Depending on the situation on the market, the index changes up or down.

6) Hong Kong Stock Exchange (Hong Kong Stock Exchange, HKSE)

Among Asian exchanges, Hong Kong takes the third a place.

Informal activities started with 1861 of the year. Wherein official foundation happened in 1891 year.

Since 1964, the index has been calculated, which is called Hang sang. Dozens of Hong Kong's largest companies are taken into account.

7) Toronto Stock Exchange (TSX)

This exchange is the largest in Canada and is rightfully one of the seven most popular world exchanges. It was created by several Canadian brokers in 1852 year. Less than a quarter century later, the state recognized the Toronto Stock Exchange. From that moment, she began to earn her world fame.

Today, shares of several thousand industrial organizations are circulating here. However, most of the market belongs to companies whose activities are associated with natural resources.

Today, the capitalization of the Toronto Stock Exchange exceeds a trillion US dollars.

It is important to remember that the rating of exchanges described here is not fundamental. Changes in the economy are ongoing: new tools are introduced, the terms of trade are improved, and other changes may occur.

3. What they trade on the stock market - a review of the TOP-4 popular financial instruments 📋

The goals carried out by the stock market are many. When working here, traders and investors must choose the optimal tool for themselves, especially since their number is large. Let us consider in more detail what they trade on the stock market.

1) Stocks

Stock is an equity security. It allows the owner to receive part of the company's profits in the form of dividends, and also is proof of ownership of the company.

If one investor succeeds in acquiring more 50% of shares, he will have the opportunity to influence the activities of the company.

You can highlight a number the benefits and disadvantagesthat are inherent in stock trading.

From the pros, you can distinguish:

1. the opportunity to make a profit in a short period of time;
2. the ability to track market conditions from anywhere in the world where there is Internet.

The main disadvantage of trading stocks is that there is no guarantee of profit. Far from always cost moves in the right direction, which means there is a risk of loss of invested funds.

2) Bonds

Bonds are debt securities, that is, they confirm that the person who bought them gave the company a loan. The organization pays for the service provided dividends.

Bond returns are usually lower than stock returns. The risk is also an order of magnitude lower. But he is, since the company may go bankrupt, then the investor is likely to lose the money invested in her bonds.

3) Futures

Futures constitute a fixed-term contract related to the transaction of an asset pledged into it; in the future, the transaction must be concluded at the price fixed at the time of conclusion of the agreement.

Most often, the underlying assets are:

• raw materials, for example, gas or oil;
• agricultural products - corn, soy, wheat;
• currencies of various states.

Profit from futures depends on the growth of the value of this contract.

4) Options

Option - This is a fixed-term contract. The most popular among them are those in which are used as the underlying asset currencies and precious metals.

To make a profit by trading options, it is enough to guess how its value will change over time. By the way, we have already talked about binary options trading in one of our publications.

It is important to understand that the above list of securities is not exhaustive. There are also other tools, for example, checks, swaps, bills. But among traders, they are not popular.

The main ways to earn money on the stock exchange

4. How to make money on the stock market - TOP-3 options for making money on the stock exchange 💰

In today's world, the largest industry is stock market activity. Their total capitalization in the world is equal to the total GDP all countries and reaches seventy trillion dollars.

The number of people involved in this industry is increasing daily; today it has already reached several millions. They are attracted by the potential opportunities offered by the stock market. Moreover, there are several ways to make money here, among which everyone can choose the one that suits him.

We recommend watching a video about earnings on stocks:

It is natural that each earnings option has its own Advantages and disadvantages. Consider the main ways to make money on the exchange, as well as the pros (+) and cons (-) inherent in them.

Option 1. Trading (trading) in the stock market

This method of earning is one of the most popular. It attracts with its potential capabilities, as well as essentially unlimited profit.

The goal of the trader, as in any other trade, is the same - to buy cheaper, sell more expensive. In this case, transactions can be made at different time intervals:

• trade on ultra short period or scalping - the position is closed after a few minutes or even seconds, profit may not exceed several cents, the result is added due to the large number of transactions;
• short or swing trading - Closing of transactions is usually carried out during the day, with the opportunity to earn a few percent of profit;
• long term - the transaction can be kept open for several months or even years, profit can be hundreds of percent.

In more detail with the types of trading, we wrote in a previous publication.

To determine the direction and speed of the price movement of the selected instrument, as well as to understand when to enter and exit the market, traders use various tools. It could be fundamental and stock market technical analysis. Most often in the trading process, indicators are used that the program calculates based on quotes using a variety of mathematical models.

The most important feature of trading is that among a large number of transactions, a part will be mandatory unprofitable.

It is important in the trading process to ensure that the result of profitable trades is higher ↑ than the result of unprofitable ones.

You should remember the main rule of the trader - you need to be able to recognize the fallacy of the forecast, which means that losing positions must be closed without fail.

In order to maximize profits, traders use various risk opportunities provided by the stock market:

• leverage - involvement of borrowed funds in the trading process;
• short game - in the hope that the value of the instrument will fall in the future, the trader takes a certain amount from the trader and sells it, subsequently buys at a lower cost and repays the loan.

The effectiveness of trading largely depends on how competently designed and whether the trading system is adhered to accurately. It is a specific list of rules that usually establishes:

1. How to choose markets, as well as tools for trading;
2. At what point should you enter the market;
3. In which case should close the position.

After the trading system is developed, it is important to produce it testingusing quotes history. This will make it possible to find out how effective and efficient the developed trading system is, how profit and drawdown are changing using various markets and tools.

If a trader is able to develop such a trading system, using which the probability of profit will be high, his trading will successful. But do not forget that no trading system can work forever. Depending on changing market conditions regularly revise trading rules.

If we take into account that it is trading that allows you to get the largest profit on the stock market, we can say that this the best option for making money. But in many respects everything will depend on the trader himself.

The fact is that for independent participation in trade it is important to meet a number of rather stringent requirements. You will need to acquire a large amount of knowledge, spend a lot of time analyzing and monitoring the market, as well as concluding deals.

Option 2. Transfer of funds in trust

Those who do not have enough time and knowledge for independent trading can transfer funds to trust management. The easiest option is collective investmentthe most popular of which is Mutual fund.

At classic trust the investor transfers the funds owned by him directly to the manager. At the same time, money is deposited into a separate account, not combining with anyone else, and management is carried out individually. At the end of the reporting period (usually a quarter or a month), the manager transmits to the investor a report that reflects the results of the funds management.

To invest in mutual investment funds (mutual funds) you should buy a part of such a fund, which is called share. All funds raised are invested in securities. If their value grows, then the total amount of money held by the fund also grows. As a result, the price of each individual share increases proportionally. To take profit, it is required to sell the shares owned by the investor on the stock exchange or directly to the management company.

Today in Russia there are more 260 Mutual Funds, shares of many of them are sold on the Moscow Exchange. Almost 80 officially registered management companies manage these funds.

It turns out that the transfer of funds to management has both advantages and disadvantages:

• Among pluses (+) we can distinguish that it is not required to have a large baggage of knowledge for transferring funds to trust management.
• Significant disadvantage (- ) is that the investor temporarily ceases to control his money. He does not know what operations the manager performs. In addition, the input threshold for individual investment is too high.

Transfer of funds in trust - An ideal option for those who want to spend a minimum of time on investment management and do not want to understand investment features for too long. However, obtaining minimal knowledge in any case will be useful, this will help to make right choice among the variety of managers or mutual funds.

Option 3. Portfolio investment

This option involves a combination of 2 (two) stages in the process of working in the stock market:

1. The choice of stocks that have prospects for stable growth in the medium and long term;
2. Adding risk-free assets to the portfolio, eg government or corporate bonds.

Investment Portfolio Example

In addition to choosing two types of securities to fill a portfolio, it is also important to determine their ideal proportion. It should be such that the return on risk-free assets overlaps (in whole or in part) risk of changes in the value of shares in the wrong direction.

The number of operations carried out by investors investing in portfolio investments is small (especially in comparison with traders). Usually this number does not exceed 15-20 per year. At the same time, the probability that the result will be profit is much higher than when trading. This is explained by the use of fundamental analysis, as well as the presence in the portfolio of a risk-free component, which acts as a kind of insurance.

It turns out that in the case of portfolio investments, the investor uses the same principles and methods that the manager of the mutual fund or individually contributed funds applies. Moreover, the owner of the funds has complete information about where his money is invested, as well as how the value of assets changes. (Also read our article on where to invest money so that they work and bring monthly income).

Note! Unlike investing in funds, there is an opportunity to form a portfolio solely on the basis of your preferences.

To assess the quality of the resulting portfolio, you can make profitability profile. It reflects the profit that will be obtained from bonds, as well as shares at a favorable outcome for the investor.

This profile also allows you to assess potential risks. To do this, the chart shows the profitability that will be obtained if absolutely for all shares included in the portfolio, the result is unfavorable. Do not forget that the probability of the latter is extremely small, so the minimum profile that is theoretically possible will be shown on the profitability profile.

Thus, independent portfolio investment for those who do not want to release their funds out of control, but are not ready to be content with the income offered by banks on deposits.

At the same time, to manage a portfolio, you do not need to spend a large amount of time daily on monitoring and analyzing funds. The fact is that initially assets are selected in the portfolio with the expectation of long term.

The result of such an activity is a pre-predicted result. Typically, investors with portfolio investments receive not less than 30% per annum. Such income allows not only to save capital from the harmful effects of inflation, but also to increase it.

We also recommend that you read the article about PAMM accounts - what it is and how to choose it correctly for investing your own funds.

To make it easier to compare the methods of earning, their features were tabulated:

All the presented ways of making money on the stock exchange are good in their own way. The features of each allow the investor to make the right choice, to choose the option that suits him.

How and where to start trading on the stock exchange on your own in 5 steps - a guide for beginners

5. Trading the stock market - instructions on how to start trading on the stock exchange for beginners 📝

For newcomers who have just entered the stock market, it can be difficult to understand where to start trading. That is why we have given in this publication a step-by-step instruction of 5 steps for beginners.

Step 1. Choose a broker

Broker - an intermediary in the trade through which there is a connection between the trader and the exchange. It is with the choice of a partner that work on the market begins.

To understand which broker is better, you need to compare possible options based on the following parameters:

• terms of trade;
• the availability of training and analytical materials;
• transparency of operations;
• simplicity and speed of withdrawing funds from the account.

It is important that not only texts copied from other resources are offered as educational materials.

Self-respecting brokers periodically conduct classes in the form of seminars and webinars, where you can not only replenish your knowledge, but also ask questions to the teacher.

Analytical materials should also be diverse. Ideally, the broker should provide the results of both technical and fundamental analysis. In a separate article, we also wrote how to choose a Forex broker.

Step 2. Install the software on the computer

All trading will occur using a special program that allows you to go online to the exchange and conduct transactions, - terminal. It should be installed on the computer after choosing a broker, using the download link provided on the site of the brokerage company.

After installation, the terminal should be configured by setting convenient chart parameters, adding used indicators and tools to them.

Step 3. Practice on a demo account

Experts do not recommend newcomers to immediately trade for real money. Even those who have experience trading currencies should undergo training in the securities market.

A demo account allows you to psychologically prepare for the start of work, check the intended use trading strategy.

Step 4. Open a live account

After during the bidding on the demo account there is confidence in your own abilities, as well as in the chosen strategy, it will turn out to achieve a steady profit, you can open real account.

It is important to understand that if you cannot achieve a positive result while trading on a demo account, you should not start working with real money.

Professional traders advise go to real trading only when you can double the amount on the demo account. The fact is that even with successful trading for several days, you can’t be sure that in the future it will work out as a plus.

The market is unpredictable, often its movements are completely unexpected. Getting one hundred percent income allows you to be sure that you can withstand even a significant drawdown.

Step 5. Real trading

When all the previous steps have been completed, you can start buying and selling securities, guided by the chosen strategy.

Perhaps at first the drawdowns will be quite substantial, since the fear of losing real and game money is significantly different.

Thus, starting to work in the stock market, a beginner should be prepared for the fact that he will require maximum patience and discipline. It is impossible rely solely on luck and intuition, do not deviate from the intended plan.

If at some point the chosen strategy ceases to be profitable, it is best to temporarily stop trading. After that, it is worth analyzing the results and, possibly, changing some trading rules.

6. Rating of Russian stock market brokers - a review of the TOP-4 best companies 💎

Today on the market there are a large number of companies that offer mediation services between the trader and the exchange. Therefore, it is not easy for a newcomer to choose a truly reliable broker.

In order not to be mistaken, it is best to use a rating compiled by professionals at first.

No. 1. BCS Broker

Many believe that this company is the best broker in the Russian stock market.

They offer trading with a large number of instruments:

• stocks;
• bonds
• options;
• futures;
• currency.

Beginners are recommended to use the tariff. Start. During the first month of operation, the broker will charge a commission equal to 0,0177% of the amount deposited. Subsequently, the company's remuneration will be determined in accordance with the turnover of the account.

BCS provides its customers with the opportunity to use quality analytics. For training, they offer webinars and seminars. Those who wish can also use the service of individual lessons.

No. 2. Finam

Broker Finam experts do not recommend using newcomers. Despite the fact that there are high-quality training programs, trading conditions are best suited for experienced traders.

The fact is that the minimum deposit in Finam is30 000 rubles, while the maximum leverage is only 1:50.

Despite the not very comfortable conditions, the broker is popular. This is explained by him reliability. Unlike most existing Russian companies, Finam has license issued by the Central Bank. This is a guarantee of the highest quality of the services offered.

Number 3. Opening Broker

It offers three options for cooperation:

1. Independent trading;
2. Opening positions based on analytics from professionals;
3. Investing funds on individually developed conditions.

Each option provides a large number of possible tariffs. Therefore, everyone can choose the perfect option for this broker.

Professionals recommend that beginners use trading on analytical signals. The commission here is not very high - only 0,24% of the turnover on the account, while it is possible to complete transactions simply by calling the broker.

Number 4. Alpari

Often Alpari used to work on forex. However, today they offer several options for trading futures. A further increase in the number of instruments is planned.

The undoubted advantage of the broker is the availability of quality training programs. Every day everyone (including unregistered users) can view a large number of webinars.

Thus, choosing the optimal broker, it will be useful to take the advice of professionals. Many of them managed to work with several companies, so they talk about all their features on the client side.

7. 10 useful tips for a successful and profitable stock market trading 📌💰

Most traders find it very difficult to start earning income in the stock market, and more often than not, difficulties are associated with the behavior of the bidder himself.

The fact is that many people make similar mistakes, fall into the same traps. Most of them are the result of the rejection of a clear trading strategy.

Chaotic trading can lead to significant losses. In this case, most of the problems can be avoided if you use the advice provided by professionals.

Tip 1. Design a trading system

Trade must be conducted in accordance with a specific system. Each trader should develop a set of rules for themselves. discoveries and closing positions.

Next, you need to make sure that they are working, using demo account. If the result of the check is positive, you can trade using the system on real money. It is important to strictly follow the developed rules.

Tip 2. Don't get carried away

Do not try to beat the market, opening a huge number of positions. To make a profit, one carefully thought out transaction is enough. Therefore, among the huge number of signals to open a position, it is worth choosing the one that best fits the system used.

If there is no clear signal, you should not enter the market at all. Sometimes the lack of open positions is an ideal position.

Tip 3. Manage Losses

The trader must not forget that during the course of trading, there are losses inevitable. It is important to learn how to correctly set Stop Losstaking losses.

Do not be afraid of small minuses, as these are not losses, but inevitable expenses. Only competent loss management, which means risk, makes trading as efficient as possible.

Tip 4. Do not rush

Do not rush to get huge profits.

The position should be opened as much as possible to the level of support. You must install Stop Loss immediately.

If the price goes in the wrong direction, the loss must be fixed.

Tip 5. Don't be greedy

After entering the market, you should give a position to develop, leave in plus (+). But in the case of approaching the resistance line, right away close position.

Do not be greedy, otherwise the price will turn around and the profit will be noticeably less.

Tip 6. Do not try to recoup

In the moments when it was received minus (-), the necessary deal was mistakenly closed, the operation was not done according to the rules, novice traders try to fix something, rushing to open new positions. Do not do this, as you can break firewood.

It is better to exit the market for a few hours or even days until the ability to soberly assess the situation reappears.

Tip 7. Do not flirt

A trader should get rid of excitement, it is recommended to conduct transactions calmly, adequately assessing the situation.

If a trader is excited, he only creates the appearance of analysis, in fact ignoring the most important signals. Transactions in this case are opened hastily, which inevitably leads to sad consequences.

Tip 8. Do not use all types of analysis at once.

Those who trade, analyzing charts, there is no need to view the news. It should be remembered that the schedule takes into account both past and future events.

Important! Any actions should be performed based on the trading system.

Tip 9. Do not neglect education

Training should be continuous. Many traders, deciding that they all know, begin to lose money. Often they make deals based on knowledge only, neglecting analysis.

Remember: there is always the opportunity to learn something new. Even if the system works, new knowledge can help increase profits and reduce losses.

Tip 10. Don't be fooled

Do not completely rely on technical indicators, advisers, as well as untested strategies.

Before using the strategy in trading in the financial market, important make sure its performance on demo account.

Today, the Internet offers a huge number of options for win-win earnings, which in reality turn out to be a trivial deception. There is an article on our website in which it is described in detail how to make money on the Internet without investments and fraud - it contains only real ways of making money on the network!

Thus, success in the stock market can only be achieved as a result of hard and painstaking work.

No need to trust someone who promises huge earnings in a short time. Trading - it is always an expectation (a better moment, exits to the plus). Earn fast and guaranteed here will not work.

Read about how to make money fast in one of our articles.

Who can help with stock market trading training - company overview

8. Training in trading on the stock exchange - assistance of professionals in training in trading 📚

An important component of successful trading is quality training in trading on the stock exchange. We talked about Forex training in the last issue.

Today, many professional securities market participants offer classes. In this regard, choosing a suitable newcomer can be difficult. Therefore, we decided to talk about the best training options to date.

Most brokers offer training in various forms. Among those who help with trading on the stock exchange, we can distinguish Finam and Zerich. Here are offered Not only theoretical, but also practical lessons. They help to understand the basics of the functioning of the market.

Work on exchanges of all types is well described at the seminar offered by Oil Bank. Education here is absolutely free. Professionals will tell you which strategies are especially popular, and also explain the rules for their application.

Do not ignore the offer from "Finance Academy". A whole course of classes has been developed here, which includes two theoretical and nine practical. Statistics show that the predominance of practical classes allows beginners to get used to the market very quickly. As a result, many begin to successfully trade after half the rate.

Thus, to achieve success in the market and become a professional is practically impossible without quality training.It is worth paying attention to the above courses, because they are available and for the most part free.

9. Answers to frequently asked questions (FAQ) 📑

Beginners who just enter the stock market inevitably ask a huge number of questions. Finding answers to them can take a lot of time, so we will try to answer the most frequently asked ones below.

Question 1. What are blue chips in the stock market?

Blue chips - these are companies in which the shares are the most liquid and popular on the stock exchange. It should be understood that the blue chip list may change periodically. This is due to stock market instability.

There are a number of qualities that blue chips possess:

1. Stability and significant power of the company. You can evaluate these parameters, as well as the position of the organization on the market, by calculating capitalization rate. It is found as the product of the number of shares circulating in the market and their value. The high value of the indicator allows us to judge about the rather effective functioning of the company.
2. The company is developing steadily, and the value of its shares is constantly growing. It is important to understand that for blue chips, a significant share price is determined not by high speculation, but by the real position of the company in the market.
3. High level of liquidity of securities. It is achieved due to the large number of operations with them (purchases and sales) in a short period of time.

In Russia, every quarter on the Moscow Exchange, a blue chip index is calculated.

The blue chip list of the Russian stock market includes oil and gas companies - Lukoil, Surgutneftegas, Gazprom, largest banks - Sberbank, VTB and other companies.

Experts recommend that traders who do not have experience working with high-risk assets, invest in securities of these companies.

Question 2. What stock exchanges work in Russia?

In Russia, the stock market began to develop in the early nineties. It was then that the first exchanges appeared. Some of them still work in the same form.

However, some exchanges have undergone global changes. The following are the largest sites operating in Russia at the moment.

1) Moscow Stock Exchange

It is the largest exchange in Russia today. The formation of this site was in December 2011 of the year. It was then that the merger of two large competitors - Moscow Interbank Currency Exchange (MICEX) and Russian Trading System (RTS). That is why it is often called the Moscow Exchange a united platform MICEX-RTS.

Today it is universal and allows you to trade all instruments. It is the Moscow Exchange - leader in Russia, it provides most of the total turnover. Full information about the site is presented on the site moex (dot) ru.

The exchange provides services to 6 markets:

• stock market, which includes three sectors - Main Market, Standard, Classica;
• derivatives market;
• currency;
• monetary.

More than 80% are traded on the main market shares in Russia and 99% - bonds. This market is the basis for the emergence of liquidity of securities in Russia. Moreover, it is on this site that most of the foreign investment in the Russian economy is carried out.

FORTS or derivatives market are traded derivative securities. The most popular are options as well as futures. The greatest liquidity among all the instruments traded here has the futures on the RTS index.

On the foreign exchange sector of the Moscow Exchange:

• U.S. dollar;
• Euro;
• yuan;
• hryvnia;
• tenge;
• Belarusian ruble.

There is also access to a dual-currency basket and currency swaps.

In the monetary sector of the market, operations are carried out using government bonds. The Central Bank also holds auctions for short-term loans.

The commodity sector is so poorly developed on the Moscow Exchange that it is not even customary to single it out.

2) St. Petersburg Exchange

The abbreviated name of this exchange is FBSPb. Maximum information about it can be found on the site spbex (dot) ru.

This exchange accounts for a large part commodity sector. Among the traded instruments, the most popular commodity futures.

It is on FBSPb that prices are formed in Russia for such goods as corn, soybeans, wheat, cotton, diesel and others.

3) Currency exchange in St. Petersburg

Exchange website - spcex (dot) ru. Trade here US dollars, Euro, as well as interbank loans. In addition, bonds of the constituent entities of the Russian Federation are traded on this exchange.

4) Electronic site "IFAC"

Exchange website - mse (dot) ru. Various stock and commodity instruments are traded here. In addition, various auctions and contests, as well as bankruptcy auctions, are held on the presented exchange.

It should be noted that the main liquidity falls on the Moscow and St. Petersburg exchanges. However, other sites continue to function.

Question 3. How to choose a broker in the stock market?

The first step to trading the stock market is broker choice.

However, most beginners are guided by the following criteria:

• functionality;
• tariff plan conditions;
• reliability;
• quality of technical support;
• number of clients;
• company turnover.

All brokerage companies offer various customer service tariff plans. They are usually determined by the nature of the transactions.

Specialists recommend that newcomers choose such tariffs at which there is no monthly fee, and the commission for storing securities is minimal.

Studying the reliability of the company, you should pay attention to how much it operates in the market. Naturally, you should not trust brokers who have been operating for one or two years. It will be useful to pay attention to who owns the shares of the company. The most reliable will be those brokers, some of whose shares belong to to the state.

The number of clients is determined by the number of active trading accounts. It allows you to evaluate how market participants trust a particular broker.

When choosing a broker for cooperation, it is important to consider all factors in aggregate. This is the only way to choose a truly reliable partner and not get caught up in fraudulent schemes.

Question 4. What works better - fundamental or technical analysis of the stock market?

Among traders working not only in the securities market, attempts are often made to compare fundamental and technical analysis. They try to figure out which tool is better and can help make big profits.

It is the two named groups of methods that allow us to analyze stock investment appeal. At the same time, they have significant differences, which lie both in the tools used and in the time period in which the technique is applied.

Traders who rely on fundamental analysis, focus on how the supply and demand of goods and services of the company are related. At the same time, they analyze the following indicators:

• reporting;
• market position;
• ratio of stock price to profit;
• company growth rate;
• ratings of analysts.

Traders using fundamental analysis most often buy securities for the long term. Therefore, they do not pay attention to how the stock price changes on a particular day.

During technical analysison the contrary, changes in the value of the instrument, reflected in the graph, are studied over time. It is noticed that the price forms various figures and modelsthat are periodically repeated. Therefore, when analysts notice on the chart the next formation of an established figure or model, they draw conclusions about a further change in price.

Fundamental analysis allows you to judge the strength that is embedded in a particular security. Technical analysis allows you to judge how volatile their cost. Moreover, both types of analysis have their own advantages and limitations.

Features of fundamental analysis

Benefits of (+) fundamental analysis consist in the fact that it allows you to judge what are the trends in the market, as well as what factors influence it. It turns out that fundamental analysis allows us to understand what is the reason for the current trend.

Important minus (-) such a market valuation method is lack of visibility. It is not easy for beginners to compare the results obtained in the course of analysis with graphic displays of the market. As a result, trading errors often occur.

A trader who uses fundamental analysis, forced to keep abreast of all events. It is important to monitor not only the news of the economy, but also industry, the world, and politics. In this case, one cannot do without basic knowledge of all these business sectors.

Features of technical analysis

Technical analysis is work with graphical display of prices. It follows from here main advantage (+) - visibility. Many people think that this analysis option is much easier to master. All the necessary tools are already built into the terminal, so you don’t have to spend time searching for information.

Among cons (-) of technical analysis the main one is subjectivity - each trader in his own way interprets the information reflected on the chart. Moreover, technical analysis does not allow us to understand why this or that movement occurs.

Having studied the pros and cons of each analysis method, each trader can determine for himself the more preferable. At the same time, professionals recommend using them In total, because usually they do not contradict each other.

Fundamental analysis allows you to determine the main trend, the confirmation of which can be found in the technical. Thus, a combination of two types of analysis allows you to get a more complete picture of the market, to use the maximum chances for profit.

Question 5. What to choose - the Russian stock market (RF) or the American (USA) for trading?

The development of the Internet has allowed traders to trade in the stock market of securities of almost any state. In this regard, they often wonder which market to choose.

Most often, Russian traders are considering two alternatives - Russian and american stock markets. To decide, you should consider the benefits of each of them.

Pros of the Russian stock market:

1. A small amount to enter. You can start trading on the Russian market with 10 000 rubles, however in this case there will be a rather high commission in percentage terms. Profits can be started by investing fifty thousand rubles. At the same time, in brokerage companies that allow Russians to trade on the American stock exchange, the entry threshold is much higher - 5-10 thousand dollars.
2. Fast start. To conclude a contract, deposit money into an account and start working on the Russian market, it is enough one or two days. To enter the American market, you will need to spend at least a week. Approximately the same terms apply to the withdrawal of funds.
3. Commission below. If a trader decides to work on the Russian exchange, a commission from Russian brokers and exchanges will be charged from him. If you want to trade on the American stock exchange, you will need to pay commissions of the American stock exchange and two brokers - domestic and foreign.
4. There is no language barrier. Despite the fact that when working with the American exchange, the trader interacts only with Russian brokers, he will have to look for information for analysis on English-language sites.
5. Governmental support. Since 2015, investing on the Moscow Exchange allows you to return income tax in the amount of 13% of the amount of investment. Investments in the amount of four hundred thousand rubles fall under the privilege.

The work of Russian traders in the US market also has several advantages:

1. The possibilities for diversification are endless. The capitalization of the US market is the highest in the world. Tens of thousands of instruments are traded here (for comparison, there are several hundred of them in Russia). It is possible to invest in almost any industry.
2. The American economy is still the strongest in the world. On the stock exchange of this country are traded securities of world leaders. Among the blue chips, for example, Google and Apple.
3. In the US market there are shares of companies that have been growing for decades. An example of such an organization is Walt disney.
4. The ability to combine trading with the main workplace. Major US Exchanges Work from 18:30 before 1:00 by Moscow time.
5. The infrastructure of the American market is better developed than the Russian. The level of analytics here is much higher, more developed services that allow you to make the right decision.

Thus, on Russian exchanges are more suitable for novice traders, as well as those whose capital is limited to one million rubles.

After the basics of the exchanges become more clear, and the amount of investments increases significantly, you can safely enter the US market. Moreover, it is possible to combine work in two markets in order to diversify risks.

10. Conclusion + video on the topic 🎥

In this publication, we have tried to highlight the issues of work in the stock market. For the convenience of traders, we told where to start trading on the stock exchange, gave tips that will help to achieve a stable profit.

Moreover, we compared the most popular brokers, as well as types of analysis of the securities market.

So that you do not have to look for useful information on other resources, we tried to answer questions that most often arise for new traders and novice investors.

We also recommend watching a video on how to buy and sell securities (stocks, bonds) in the stock market:

And a video on the topic "Trading platforms for trading - what it is and how it works + an overview of the most common terminals":

The team of RichPro.ru magazine hopes that this material was useful, expanded knowledge of the securities market and the basics of exchange trading. We wish you good luck in all your endeavors!

P.S. If you have any comments or questions on the topic, then ask them in the comments below.

Watch the video: How To Trade Penny Stocks: Part 4. 12 TOP 5 AMERICAN STOCK BROKERS (December 2024).