How To Double Your Capital In

Table of contents:

How To Double Your Capital In
How To Double Your Capital In

Video: How To Double Your Capital In

Video: How To Double Your Capital In
Video: How to Double Your Money? 💰 | How to be Rich? | Financial Education 2024, May
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If you are concerned about doubling your capital, then perhaps you should take a closer look at the stock market. For most of our fellow citizens, financial markets are still something very distant and exotic. The reason for this lies in the lack of information and financial education.

How to double your capital
How to double your capital

It is necessary

Available funds, an agreement with a brokerage or investment company, stock market analysis skills

Instructions

Step 1

First, you should remember that performing stock transactions is a very risky business. Only those funds that you do not need for your daily needs should be placed on the financial markets. To effectively multiply your funds, you cannot do without an amount of 10-20 thousand rubles, or even more. This amount is enough to buy a small block of shares in one company.

Step 2

Undoubtedly, a bank deposit will be a more reliable way of investing money. But the deposit will not give the profit that can be obtained in a mutual investment fund. To choose a suitable mutual fund and a specific financial instrument, you need to have at least a general idea of the processes taking place in the market.

Step 3

To begin with, you should know that there are two largest stock exchanges in Russia. These are the RTS Stock Exchange and the MICEX Stock Exchange. The MICEX Exchange is a closed joint stock company, where the shareholders are large banks and investment companies. The RTS Exchange is an open joint stock company. Professional market participants, private companies are represented in this society.

Step 4

The RTS Stock Exchange is a classic market where settlements are made in US dollars. For this reason, previously large Russian companies (“blue labels”) traded mainly on the RTS. Today the situation has changed - the MICEX surpasses the RTS in terms of turnover and the volume of trade operations.

Step 5

By observing the change in the indices of the above financial structures since the purchase of shares, it is possible with a high degree of probability to determine what the general market trend is, whether the market is going up or down. After that, the investor will have to make a decision - to sell securities, exiting the market, or wait until the shares rise in price and make a profit. The profit is generated by the difference between the purchase and sale prices of the shares.

Step 6

In recent years, the growth of Russian indices indicates that the owners of securities are making a profit that is several times higher than the profitability of bank deposits. However, past performance cannot guarantee the same performance in the future. With the main trend towards market growth, one cannot exclude the possibility of its correction, that is, a temporary decline in prices. Therefore, when deciding to play on the stock exchange, please be patient.

Step 7

There is no need to contact their owners directly to buy shares of specific companies. It is much more convenient to act through intermediaries - mutual funds, banks, investment and brokerage companies.

Step 8

The procedure for acquiring shares does not seem too complicated. Choose a brokerage company, conclude a service agreement with it. Settlements for transactions and issues of securities storage fall on the intermediary. Your expenses include broker and exchange commissions and some other annual fees. Usually, the total costs do not exceed a few percent of the volume of transactions. But nevertheless, carefully read the service agreement before signing it, calculate your costs.

Step 9

Investments in securities can be profitable in the long term. Have patience for about 2-3 years. And with enough experience, you can count on high profits and in a shorter time.

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