Competent investment in securities allows you to get a very good profit, amounting to tens of percent per annum. But for successful work, you need to understand which securities are worth investing in and how to do it.
There are many types of securities, but the most famous type of investment is investing in corporate shares. The choice of stocks is very wide, the investor can choose the options he wants depending on the investment strategy used.
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The most popular on the stock market are traditionally the so-called "blue chips" - shares of leading companies, for which there is always a stable demand. These are shares of such companies as GAZPROM, LUKOIL, AEROFLOT, RusHydro, Sberbank, ALROSA and many others. These shares are classified as first tier shares. Also on the market are less liquid shares of the second and third echelons.
What is the advantage of investing in blue chips? The fact that large enterprises are highly stable. The value of their shares is constantly increasing, which allows shareholders to receive almost guaranteed income. These shares can be sold at any time, which also attracts investors to them. At the same time, stocks of leading companies are also prone to fluctuations in value, so trading them can both make money and lose.
Investment strategies
There are three options for working with stocks: conservative, balanced and aggressive. Their main difference lies in the ratio of the expected level of profitability and possible risk. With a conservative approach, the main capital is invested in first-tier shares. In this case, the income level is not too high, but it is stable.
The balanced option assumes that the investor invests about 50% of the capital in first-tier shares, and invests the rest in carefully selected securities of lesser-known companies with the expectation of a steady increase in their value. This option can be considered the most optimal, but it requires a good knowledge of the securities market.
The aggressive option is aimed at obtaining the highest possible profit, but the risk is also higher here. In this case, the investor chooses shares of enterprises that are in deep drawdown with the expectation of recovering their value, or invests in shares of the second or third echelons, counting on their strong growth. If it is, the investor will receive a high income. If the calculations do not come true, you can get a serious loss, since it is very difficult to sell such shares without losing in value.
Of course, this division is rather arbitrary and is intended to show the difference between different approaches in determining the acceptable level of risk. There are other strategies based on a variety of principles. For example, there are strategies for intraday trading, when they make money on small daily fluctuations. Other investors prefer to buy stocks for months, while others hold them for years.
How to buy and sell stocks
Stocks are traded through a brokerage company. After the conclusion of the agreement, the client gets the opportunity to purchase and sell securities directly from his computer, via the Internet, using a trading terminal. It is very convenient, besides, the terminal has a lot of technical analysis tools. In particular, brokerage services are offered by such a well-known company as Sberbank of Russia.
It is important to note that an investor can play both upward and downward in the value of shares. At the same time, to open a sale transaction, he does not need to have shares of this enterprise. The bottom line is simple: shares are borrowed from a broker and sold. After their value falls, they are bought at a lower price and returned to the broker. The difference in value becomes the earned profit. Details of all trading options can be found on the securities trading sites.
