The exchange is currently presented to many as a source of almost "free" money, as a symbol of prosperity and financial well-being. It may be so, but only this is the hardest work. If anyone considers the exchange as a betting game like a tote, then his savings should only sympathize. So, the stock exchange is not a game, but a job!
Instructions
Step 1
Firstly, it is impossible to beat the exchange, it is not a rival, but an intermediary. The owners of shares (raw materials, precious metals, currencies) and those who want to buy them meet at the exchange. In Russia, the expression "winning on the stock exchange" is accepted, but it does not imply a game in the literal sense of the word, but a source of income. Do Americans, for example, say "make money in the market"? this is a more correct option. Remember: we say "play and win on the stock exchange", we mean - work and earn.
Step 2
The first thing a player needs to know on the stock exchange is the concept of "leverage". Here we mean the opportunity to enter the market with 1-2 thousand dollars and take out a loan without interest and commissions, resulting in an amount that is several times higher than your initial capital. At the same time, the lender constantly monitors your transactions - as soon as you have performed an operation that has used up all your money, leaving only borrowed funds, your account is blocked and a great and terrible "margin call" comes in. The latter concept means a request to top up an account. It's simple.
Step 3
If everything was really that simple, then the world would have simply burst with money bags. You can only become a millionaire in a couple of days if you are a billionaire. To play and win on the stock exchange (work and earn), it is desirable to have an economic education. It is impossible to buy shares (currency, raw materials, precious metals) at random - this is a direct road to poverty.
Step 4
The most common methods that traders use on the exchange are fundamental and technical analysis. In the first case, it means a careful study of the economic indicators associated with the asset that you intend to purchase. If your goal is currency, then you need to analyze the country's GDP, demand for goods, various indices, discount rates of banks, etc. If a trader decides to buy shares, then he studies the financial condition of the corresponding company, if raw materials, information and forecasts for supply and demand in soon. When using technical analysis, a trader looks at how the market behaved before, and on the basis of this data, he identifies a trend that, in his opinion, will repeat itself in the future. Thus, adherents of technical analysis try to guess the behavior of the exchange.
Step 5
Recently, supporters of these two types of analysis have begun to converge in views. Many people argue that it is best to "mix" forecasting methods. This point of view seems logical if only because no fundamentalist can do without pre-trade asset price charts.
