In the minds of most people far from the world of finance and investment, trading on the stock exchange is often represented as a game in the casino. However, the grace of fortune is by no means sufficient to be a successful trader. To do this, you will have to master the necessary knowledge and develop certain qualities in yourself.
Instructions
Step 1
To get started, study the general information about the stock exchange and stock trading (trading). You will come across a whole host of unfamiliar terms. To understand the concepts and principles of trading, use specialized literature, attend free seminars organized by brokerage companies, read analytical reviews, listen to business radio and watch business TV channels.
Step 2
Choose a broker (brokerage company) who will open an account for you and provide you with access to stock exchanges. The broker is an accredited intermediary between you and the stock exchange in the execution of trade transactions.
Step 3
Determine which trading terminal (program) you will be working with. Most likely, your broker will be able to tell in detail about the existing programs and find the best option for you. Today the most popular trading systems are QUIK and Net Trader.
Step 4
Build your own trading strategy. Decide: - under what development of the market situation you will make deals (buy / sell);
- what source of information you will be guided by in making decisions;
- how often to make transactions;
- what exchange instruments to trade (stocks, bonds, options, futures, etc.).
Step 5
In trading, adhere to the basic rules: - Buy securities when their quotations (prices) go down, sell - when they go down.
- Differentiate your portfolio: buy shares of several issuers (companies whose shares are traded on the stock exchange), do not invest more than 20% of your account in one type of securities.
- Fix losses: if the value of securities in your portfolio goes down by 2% -3%, sell them, do not wait for the price to start to rise. Otherwise, significant losses can be incurred.
- Set stop signals - price boundaries, upon reaching which a certain type of securities is automatically sold by the broker in order to avoid large losses.
- If you have suffered significant losses, do not trade for several days, take a break. This will help you reduce your emotional background and return to trading with a cool head.
Step 6
Develop in yourself the qualities that contribute to successful trading on the exchange:
- the habit of planning;
- self-discipline;
- endurance and self-control;
- consistency in actions.
