How To Increase Your Income With Stocks

Table of contents:

How To Increase Your Income With Stocks
How To Increase Your Income With Stocks

Video: How To Increase Your Income With Stocks

Video: How To Increase Your Income With Stocks
Video: How To Invest In Dividend Stocks For Passive Income 2024, December
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Investing in shares allows you to receive so-called passive income that does not require direct personal work. The annual income from investments in securities can be up to 100 percent or more, which attracts many investors to this market.

How to increase your income with stocks
How to increase your income with stocks

It is necessary

  • - registration with a brokerage company;
  • - access to the Internet;
  • - funds for the purchase of shares.

Instructions

Step 1

Choose a brokerage company through which you will invest your funds. You have two main options for working: you can give the broker orders to buy and sell securities in person or by phone, or you can trade yourself using a specialized program provided by the broker - a trading terminal. You will be able to monitor the market value of shares of major companies on your computer and independently carry out the necessary trading operations. The second option is more preferable, and you should be guided by it.

Step 2

After registering with a broker and setting up the terminal, you need to transfer a certain amount to your trading account. Practice shows that for comfortable trading, the account must have at least 30 thousand rubles. In any case, the amount should not be less than 20 thousand rubles, because otherwise you simply will not have enough funds to trade.

Step 3

Only work with blue chips - stocks of leading companies. At a minimum, this rule should be followed in the first months of work. You can sell shares of market leaders at any time without a big loss in value. Selling without loss, let alone profit, is much more difficult for obscure stocks.

Step 4

Learn the intricacies of technical analysis, this will allow you to make the right decisions. By analyzing the dynamics of the price of shares, you can determine when a particular security stopped falling and began to rise - this is the optimal time to buy. Conversely, when it peaks, it should be sold. Small daily fluctuations in the exchange rate can be ignored, but weekly and monthly cycles must be taken into account.

Step 5

Remember that one of the secrets of successful work in the stock market is proper money management. It is necessary to redistribute funds in a timely manner between different shares, which will allow you to get maximum income. For example, if the growth rate of a stock has decreased and technical analysis shows that a decline is possible, withdraw money and invest it in other stocks that demonstrate good growth or decline dynamics. Please note that in the stock market, you can earn both on the growth of their value, and on its decline.

Step 6

Explore investment strategies and choose the one that suits you best. To improve security, divide your assets into low-risk, medium and high-risk stocks - the possible return on assets in this case is fully consistent with the level of risk. At least half of the capital must be invested in low-risk assets. Invest half of the remaining amount in profitable assets with medium risk. Finally, you can use a quarter of your capital for the risky game. Taking into account these rules, you will save at least half of your funds even in the most unfortunate outcome.

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