Trading on the stock exchange is technically a very straightforward process. You must have a computer connected to the Internet with an installed program - an exchange terminal. You should watch the change in stock prices in it and at a certain moment decide what to do - sell securities or buy. After waiting some time after that, you should again make a similar decision, and the difference between buying and selling and vice versa, minus all commissions, will be profit.
It is necessary
Broker agreement, exchange terminal, computer connected to the Internet
Instructions
Step 1
Choose a broker and conclude an agreement with him. This is due to the fact that an individual cannot directly send orders to the exchange. For this, there are special organizations, brokers that provide them with the opportunity to take part in exchange trading. He provides you with a trading terminal, a program for working on the stock exchange, conducts its bookkeeping, removes income tax. You pay a commission to the broker for this, a small fraction of the turnover.
Step 2
Determine the amount of the commission that should be paid to him. In addition to it, other deductions are possible, it all depends on the cost of the broker's services. Since the commission is taken from your turnover, its size will affect the price of the transaction. The lower commission makes it possible to play short trades, thereby providing more opportunities to increase profits.
Step 3
Select an exchange terminal. This is an important point when starting trading on the exchange. They are of different types and differ in the reliability of the connection and the set of services provided. But they all provide an opportunity to view current stock prices, draw quotation charts, and announce a buy or sell order. First, you will be offered demo access to the terminal, which will give you the opportunity to visually determine the program's capabilities. Communication with the broker is carried out via the Internet, there is no need to visit the office.
Step 4
Install the terminal on your computer. After that, two questions will arise - when to buy and when to sell shares. There are several strategies, one of them is to play only bullish. This has both pros and cons. The positive side of this strategy is that you always know your next move, the downside is the inability to flexibly enter the trading process. But for a beginner, this is the preferred tactic. When trading, it should be borne in mind that no one knows the price for sure, unless, of course, you are the Minister of Finance. Therefore, one should proceed from the current situation, it is advisable not to trade against the market, i.e. if the papers fall, do not “pick them up” until they sink to the “bottom”.
Step 5
Watch out for losses. Since you are just starting stock trading, this is especially important, it will still be difficult for you to psychologically realize losses. When you buy stocks, you expect profits, and if the trend has turned in your direction, you can persistently not close the losing position, thereby stupidly watching the increasing losses that destroy your account. In order to avoid such a scenario, you should think in advance about the price level at which the position should be closed, in the event that the price is against you. Use stop-loss in the terminal. In this case, the position will be closed automatically when the price reaches the level specified in the order. Losses should be cut mercilessly.
