Success on the stock exchange can only be achieved by those who perceive trading on the stock market as a way to make money. The generally accepted definition of “gambling”, if taken literally, can play a cruel joke on an investor. The market is not a hippodrome or a sweepstakes, the “at random” method will not work here. To get money on the stock exchange, you need to analyze the market, it is advisable to enlist the help of professional economists, or get the necessary education yourself.
Instructions
Step 1
Stock speculators are divided into two types: bulls and bears. The former are bullish, that is, they are waiting for prices to rise. This nickname is easier to remember by analogy with their strategy - the bull kind of raises the prices on the horns, that is, the market grows. The bears seem to be pressing the stock exchange to the ground, which also correlates with their “bearish” trading strategy, that is, the expectation of a fall in prices.
Step 2
To get money on the exchange, you must first buy cheaply, and then sell at a higher price, thus obtaining a profit. This is a bull's strategy. The second option is to sell at a high price and then buy at a low price. This is what bears do. In the first case, everything is more or less clear: the investor buys shares (raw materials, precious metals, currency) in anticipation of a rise in prices, then, when prices really rise, he sells the asset and gets the difference, which he puts in his pocket.
Step 3
Let us consider the second option for better understanding with an example. Let's say you learned that the dollar is expected to fall, and a significant one. You have sold all your American money and want to capitalize on the coming market change. You go to a friend who has dollars and ask for loans, say, $ 10,000. Sell them at the current rate (let it be 27 rubles for 1 US dollar) and get 270 thousand rubles. Your expectations were met, the rate dropped to 25 rubles. for 1 US dollar. You buy $ 10 thousand. at the new rate, you pay 250 thousand rubles for them, after which you return the money borrowed to your friend. The difference is 20 thousand rubles - your income. Such a strategy is called a short position, meaning a rapid fall in prices, and therefore a short one. When a stock trader is bullish, he opens a long position. In this case, an analogy is drawn with the fact that prices always rise slowly, and therefore the position is long.
