Stocks, like matches, are not a toy. Investing money in securities is a rather dangerous business, as you can lose all your savings. However, trading on the stock exchange is also a fairly profitable business with a reasonable approach and the presence of certain knowledge.
Instructions
Step 1
It would seem, what is so difficult here? Buy stocks, wait for them to rise in price, sell and put the difference in your pocket. Profit floats into your hands. However, everything is so simple only in words. It takes a long, hard study to play with stocks. The first rule can be formulated as follows: trading on the stock exchange is not entertainment, but business, and quite serious.
Step 2
Warren Buffett, one of the most famous investors in the world, once remarked that any stock market player should know the basic principles of accounting, annual reporting standards and the history of the stock market. Therefore, it is necessary to include financial education among the primary conditions. Do not ask the "experienced" how much you can earn. If there is such an opportunity (ask experienced advice), it is better to find out where to start, which stocks to buy, and whether you should do it at all.
Step 3
You will need special programs for playing on the stock exchange. In the age of high technology, there are many solutions with which you can play with stocks without leaving your home. It is best to use multiple monitors (at least 2). This way, you can simultaneously track company news (which affect stock prices), as well as online stock quotes.
Step 4
You can play with stocks only if you are constantly aware of all the news, changes in legislation, information on mergers, disintegrations, profits and losses of companies. All of these factors affect the value of a security, and you need to know as much as you can to play it right, to seize your opportunity. The most valuable thing in stock trading is information. Try to read more. Often, an analysis of the past helps to establish the correct logical chain and predict the future course of events. The importance of flair to an investor cannot be overstated.
Step 5
Find a good "guide", i.e. broker. Now there are a sufficient number of intermediary companies that offer training, trainings with demo accounts and online trading. Their services cannot be called cheap, but a beginner player with stocks is still better off turning to a reliable "mentor".
Step 6
Analyze. Try to record your decisions when and how much you bought shares in such and such a company. Subsequent analysis of events will allow you to isolate errors and take them into account in the future. At first, it will not be superfluous to note the changes in the quotations of securities on paper, and then compare them with events related to a particular company. This will give you a better understanding of what drives stock prices.
