A fall in the stock market (decline) is a good opportunity for novice investors to start playing on the stock exchange. If you are sure that the market will start growing soon, do not hesitate, get down to business. Information about the predicted market volatility for the coming years can be gleaned from reliable sources, which are such distinguished publications as The Wall Street Journal, Bloomberg, Finam, Prime or Finmarket.
It is necessary
GDP growth forecast
Instructions
Step 1
Make your savings work. Money makes money, investors like to say. If the government predicts an increase in GDP in the coming years, then the stock market will grow. This scenario can only be violated by force majeure.
Step 2
Find undervalued stocks in the market. Take advantage of the advice of professionals, experienced investors. To do this, you will need to gain the trust of some of them, since an outside person is unlikely to provide you with information about securities on which he himself can earn.
Step 3
Before choosing a company in which you decide to invest, it would be a good idea to first decide on the area. Traditionally, the most profitable are the automotive industry, the commodity sector, real estate and banking.
Step 4
If you decide to play short, the main thing is not to miss the moment. During a fall in quotations, many market participants panic and begin to sell assets, fearing that they will fall in price and lose profits. However, a fall in the market does not mean that it will never rise again. Look what happened before: after a collapse, there was always a rise. Do not forget about the advice of knowledgeable people. It is very difficult at first to distinguish profitable stocks from “bad” ones.
Step 5
Lower prices are a great opportunity to purchase so-called stocks. Blue chips, that is, the largest players. As a rule, everyone starts by buying common securities. However, when the market falls, the latter are at risk, and you may lose.
Step 6
Take advice. If you're a budding investor, don't go it alone. Human nature can play a trick on you: focus on asset quality, not quantity. The predictions of kind people will help you only at first, you need to master the profession of an analyst as soon as possible, without this there is nothing on the stock exchange.
