How to make money on stocks - all the ways and examples. How to make money on stocks and securities on the Internet How much do you earn by selling shares

Hello! In this article we will discuss what stocks are and how to make money from them.

• How much can you earn: from 10% per annum.
• Minimum Requirements: 1 - 2 thousand dollars.
• Is it worth starting: if there are available funds.

General information about promotions

Before we start talking about earnings, let's figure out how shares work, why they are attractive to investors, and why companies issue them in the first place.

Promotion - an issue-grade security that secures the owner’s rights to receive part of the company’s profit in the form of dividends and to receive part of the property after the liquidation of the company.

Making money on stocks around the world remains one of the most interesting ways to invest your own money. It is quite risky, because when buying shares, you do not gain access to the company’s financial decisions, cannot properly assess the prospects, and are directly dependent on the company’s financial position. However, the profit from this method of earning is significant.

A less risky form of income is buying bonds. More risky is playing on . Shares combine the pros and cons of these types of earnings. On the one hand, there is a fairly high yield of 10 - 15% per annum, on the other hand, earnings depend solely on the behavior of the company and its financial results.

A company's board of directors typically works as follows:

• The financial results report is published.
• The company sees a net profit or a net loss.
• If the net profit is greater than the funds that need to be spent on improving the business, dividends are paid.
• If the profit is less, the board of directors decides to inject all funds into the development of the company.

It is worth understanding that the stock price has virtually no effect on the financial position of the company itself. This is an indicator of the authority and financial results of the past period. For example, the Nintendo company, which produced the popular mobile game Pokemon Go, “increased in value” by 50% in the week after the official release.

But as soon as information was made public that the company had a very mediocre relationship with the project, its shares immediately fell by 18%. The company's affairs, in fact, have not changed at all. It's just that investors and speculators have lost or gained a lot of money.

That is why buying shares on the stock market is not direct to the company and has virtually no effect on its financial results.

How to make money on stocks

You can make money by purchasing shares in two ways at once: in the event of an increase in the price of purchased securities and by paying dividends.

In Russia, stocks with an average dividend yield of 5 - 10% are considered good.

It is already possible to cover the profitability of dividends on shares.

In this respect, the shares are somewhat similar to. If you, then you make a profit when it is analogous to dividends, with the only difference being that the price of securities directly depends on the company that issues them. And the real estate market in Russia is in a stable state, while companies are constantly developing or finding themselves in difficult situations.

This is why making money on stocks is both easier and more difficult. On the one hand, you don’t know where the company will turn next, and on the other, the income from two items adds up to be quite significant. To make money on securities you need not only desire, but also skills.

An unprepared person should not buy shares and trade on his own. Few experts can predict whether a company will follow the right course or whether its position will collapse. As an example, Apple, which lost 4.4% immediately after the news of the death of Steve Jobs.

Where to buy shares

There are two ways to buy shares: yourself or through a trustee. Let's take a closer look at each of them.

You can buy shares yourself on the stock exchange. In order to conduct transactions, you will need to enter into an agreement with an intermediary -. They can be either special companies or ordinary banks. The best banks will be the most convenient for transactions on the stock exchange: Alfa-Bank, Sberbank, Tinkoff, Otkritie, etc.

Shares are traded on the Internet. You can earn money without leaving home. You only need to install the software that the broker will provide you with, and use it to send orders to buy or sell shares.

When working with a broker, you will be charged a percentage for each trade. It is not that big: 0.002-0.05% for each transaction. If you're just buying shares for , such interest won't hurt your pocket. But if you conduct active trading, constantly buying and selling assets, then at the end of the year you can accumulate a considerable amount of tens of thousands of rubles.

In Russia, official trading through a broker is very common. In America things are different. There you can buy company securities literally in the garage. Many budding entrepreneurs attract investment by selling shares of the company for 1 - 2 cents. There, brokers can be almost any people who work for a percentage. If you want to look at it, the movie “The Wolf of Wall Street” vividly shows the “garage” trading of company securities.

Unlike Russia in the West, approximately 80% of families own securities.

If you don’t know what stocks you want to buy or how the market works in general, then transferring your funds to trust management would be an excellent option. It works something like this: you choose, buy a share in it and wait for a profit.

Your profit will be expressed in an increase in the value of the share. Unlike independent stock trading, you do not receive dividends and pay a percentage to the fund for asset management. But at the same time, you are spared from making independent transactions. You hand over the money to specialists, and they decide what and how to invest it.

If you have a large amount (from 1 million rubles), the management company can offer you the development of your own investment strategy and personal advice during transactions.

How much can you earn from stocks?

On the Russian market, you can make money either from shares of large companies (blue chips) or from developing companies that, by putting their securities on the market, are trying to attract investment. The income from owning blue chips is quite small, but securities prices are rising steadily and dividends are guaranteed to be paid.

On the other hand, tier 2 and 3 stocks are a rather risky investment. The company may go bankrupt, fail to pay dividends, or make the wrong decision, which will significantly reduce its position in the market.

Earnings also depend on how you plan to trade stocks. If you invest money, receive profit from dividends and, in the case of confident and strong growth of shares, sell securities, then you can get 15 - 20% per annum, and risk practically nothing.

If you make money by buying and selling shares, your income will grow. Typically, traders use leverage, which gives them greater profitability, even if securities move by 0.3 - 0.4% within 1 day. But this is a very risky type of income that only professionals can do.

What securities to invest in

Investors are advised to create their own portfolio, which will contain a variety of securities. You can't invest all your money in shares of one company. This is due to the fact that any unforeseen situation, and you risk losing up to half of the investment amount, literally in one week. Although this is rare on the world market, it does occur.

For beginners, the best option would be to invest in the safest securities possible. Blue chips from the TOP 10 by turnover:

As you can see, you can invest in shares of Sberbank, Magnit, VTB and other large Russian companies. They are stable enough to generate profits and distribute them among all shareholders, and their prices are little subject to fluctuations.

By investing in shares of Gazprom, Lukoil and other large mining organizations, you will directly depend on the international oil situation. That is why these investments, although not so risky, but any global instability can significantly reduce their rate.

Who can make money on stocks

As you can see, here income is measured not in specific numbers, but as a percentage of investments. In order to competently conduct investment activities, you will need available funds. If you are only going to invest, occasionally selling and buying securities, then it will be enough to have 500 - 1000 dollars. By constantly replenishing your account, you will be able to increase the amount of available funds over the years and work with large volumes of securities.

For traders who want to make money in the stock market, the required amount in the trading account will be much higher. Since the broker receives a percentage of the account's trading turnover, you will pay tens of thousands of rubles per year if you constantly buy and sell securities. That's why $500 won't be enough. Recommended balance: 1 - 2 thousand dollars.

Keep in mind that trading stocks is a rather risky activity. You may lose all funds in your trading account. Therefore, be prepared for losses.

As for special knowledge, an ordinary investor who has decided to invest in the least risky companies will have enough knowledge of the basic mechanisms of the securities market and the basics of how companies operate (what the company does, how it works, how it makes a profit). Such data will be enough to understand what prospects the company has and whether it is worth investing in it.

Traders will need much more knowledge. You cannot do without specialized materials on investing and trading on the stock exchange. Only after reading a dozen books and many hours of trading “on a piece of paper” can you start real transactions.

Bottom line

Stocks are a great way to generate passive income. By buying securities of large companies that have been in business for decades, you get stable profits and a large financial cushion, which you can easily turn into money if something happens. Is it possible for a beginner to make money in stocks? Yes, but you should understand that it’s not just an easy ride, but constant analysis and forecasting.

You can make money on stocks and securities as a trader or investor. Traders make trades on a daily basis, constantly buying and selling stocks. Investors hold securities longer - from a month to several years. Long-term investments are less risky and do not require much experience and intuition.

How can you make money on stocks?

There are two ways to earn money:

Earnings from dividends

Every year the joint stock company pays dividends to security holders. This is not a fixed interest rate like at a bank. The size of dividends depends on the condition of the company and its net profit at the end of the year.

Net profit is what the company received after deducting all expenses, expenses, and taxes. Profits are distributed between shareholders and the joint-stock company itself: part goes to dividends, part goes to the development of the company. What percentage of profits will go to investors is determined in the Charter or at a general meeting of shareholders. It could be 20% or 50%.

Dividends are paid based on the results of the previous year, 9 months, six months or quarter.

If dividends on shares will amount to 1 ruble 97 kopecks for each share, then by purchasing a package of 100 shares, you will earn 197 rubles from dividends on shares, excluding personal income tax.

Earnings on changes in stock prices

“Buy cheaper, sell more” - this algorithm for making money on the stock market is also applicable to any securities, foreign currency, and precious metals.

You can get rich in stocks both by increasing their value and by decreasing them:

Long – you buy shares at a low price and sell at a high price.

Short - you borrow shares from a broker, sell at a high price, then buy shares at a low price and return the "debt".

If you do not plan to engage in trading and are making long-term investments (for example, for a year), you should play on the increase in value. Short trades require experience and qualifications.

What stocks can you make money on?

Almost any - according to one scheme or another. It all depends on the dynamics of stock prices and the reliability of the company.

Shares of large companies (such as "", "", "") can rise or fall in price slowly, so they do not bring very large, but stable income in the medium term. Earnings from dividends are usually small: market leaders do not need to attract investors by increasing the percentage of profits for shareholders.

Shares of young companies, as well as those that are in crisis, are a riskier purchase. With a successful combination of circumstances, you can get a thousandfold profit and raise a lot of money on shares; if unsuccessful, you can lose your investment. A typical example of a successful risky investment is Facebook shares in the early years of the social network's existence.

This material is a kind of introductory lecture for those who want to get into investing, but don’t know where exactly to start. If, after reading it, you want to go deeper into the topic, you can take the full course on the Investment 101 portal. The course materials were prepared jointly with professional traders and analysts at BCS Broker and combine theoretical blocks with practical exercises. So what are stocks?

Promotion is a security that gives its owner the right to participate in the management of the company and receive a portion of its profits.

In a simplified form, everything looks like this: an enterprise needs money for development, so it turns to investors for help, who provide the necessary amount. In return, they receive ownership of a certain share of the company, expressed in shares.

The total nominal value of the shares must be an amount equal to the authorized capital of the joint stock company. Investors can be both individuals and legal entities, and their share in the share capital is determined by the ratio of the number of securities owned by the company to the total volume of its shares. The company returns part of the annual profit to shareholders as dividends - a kind of gratitude for financial support.

Types of shares

There are ordinary and preferred shares. The company can produce both of these types or limit itself to only the usual ones. The volume of preferred securities should not exceed 25% of their total quantity. The difference between the two categories lies in the order of profit and the ability to influence decisions important for the company.

Regular shares give the investor the right to participate in the general meeting of shareholders - the highest management body of the joint-stock company. Payment of dividends on such shares is not guaranteed and is carried out only after the distribution of premiums among the holders of preferred shares.

Owners preferred shares they do not take part in the management of the company (except for making decisions on the reorganization or liquidation of the enterprise), but the amount of their dividends is greater than that of owners of ordinary securities. The ratio of premiums on ordinary and preferred shares is fixed in the charter of the joint-stock company. In addition, it is preferred shares that have the primary right to receive payments at the end of the year.

Additional advantages are provided by the total number of securities owned by one shareholder:

• 1% of shares gives you the opportunity to get acquainted with the list of other shareholders.
• 2% of shares allow you to include issues on the agenda of the general meeting of shareholders and propose candidates to the board of directors and audit commission.
• 10% of shares give the right to convene an extraordinary meeting of shareholders and conduct an audit.
• 25% + 1 share - blocking stake. It allows you to reject at the general meeting decisions that require the consent of 75% of shareholders (amendments and additions to the charter, reorganization and liquidation of the company, as well as other issues related to authorized shares and the repurchase of already placed ones).
• 50% + 1 share - a controlling stake, giving the owner the right to independently make decisions on all other issues discussed at the general meeting of shareholders.
• 75% + 1 share gives the holder the opportunity to make any decisions regarding the management of the company.

How to make money with stocks

It is clear that the average market participant does not have a sufficient number of securities to directly or indirectly influence the fate of the company. However, he doesn’t need this, because the main purpose of buying shares is to make a profit. You can make money here in two ways: by receiving dividends or income from the difference between the purchase and sale prices of shares.

Dividends

The source of dividend payment is the company's net profit, that is, the amount remaining after taxation. The size of dividends is determined based on the results of the financial year (in some cases - a quarter, half a year or nine months) by the board of directors, and then the decision is submitted to the meeting of shareholders for consideration. Shareholders can approve the proposed payments or reduce them if they believe that the company needs more funds to successfully develop. Investors registered in the shareholders register as of the reporting date have the right to receive dividends. This date cannot be set earlier than 10 or later than 25 days from the date of the decision on payment.

The procedure and timing of dividend payment are determined by the company's charter or a decision of the shareholders' meeting. For ordinary shareholders, this period is no more than 25 business days from the moment the circle of persons entitled to receive dividends is determined.

The person representing the interests of the investor - the nominal holder and trustee registered in the register of shareholders - will receive their funds no later than 10 days from the same moment. During this period, cash dividends are sent to the recipient by postal order or transferred to his bank account.

Exchange difference

You can also earn additional income by trading securities. Here you make money on the difference between the cost of buying and selling - you bought cheaper and sold more expensive. For trading, it makes sense to choose ordinary shares: their liquidity (the ability to be easily bought and sold) is higher than that of preferred ones. It is worth remembering that after the registry is closed, the value of securities falls approximately by the amount of dividends paid. If you want to buy shares, this is a good time, but to sell it is better to wait from a couple of months to six months: the share price, as a rule, returns to its previous level or even exceeds it.

Theory is theory, but it’s still exciting to plunge headlong into trading. It is better to take the first steps in the simulator on the Investments 101 portal. The situation here is close to real, so you can calmly get used to it without risking losing all your savings. When you acquire the necessary skills and feel confident in your abilities, you can move on to real stock trading.

Advantages of shares over bank deposits

It would seem, why study the financial indicators of large market player companies and form an investment portfolio if you can simply take your money to the bank and after a while withdraw the slightly increased amount? It’s possible, we don’t argue. But stocks have their own advantages that make them a very attractive investment instrument.

1. The funds that you have deposited with the bank cannot be withdrawn before a certain date. You can sell and buy shares at any convenient time - at least several times a day.
2. The maximum amount of deposit subject to insurance is 1.4 million rubles. If you had more money in your account, then in the event of a bank bankruptcy or license revocation, you can only count on partial reimbursement of lost funds. Stocks that are falling in price can usually be sold - and even then, you will recoup some of the money if you bought the stock at an even lower price.
3. The potential return on shares is many times higher than the rates on bank deposits. Dividends are taxed at 13%, but even taking this into account, annual payments may be higher than for time deposits.
4. In the case of stocks, you have more opportunities to personally influence the growth of your savings. The final profit is formed not only from dividends, but also from the price of securities.

As you can see, there is nothing scary or incomprehensible in working with securities. Study the theory, apply it in practice, and you will see that the world's largest investors are not in vain investing their billions in stocks.

Greetings! Ruslan Miftakhov is in touch and in this article I want to discuss how to make money on stocks. This question very often arises among people, especially beginners who have just begun to study the financial world.

Many people want to invest their savings and get serious income from them. But coping with this task is not so easy; if you select the wrong positions, you can lose a large amount.

What methods exist and what should you pay attention to?

To the question “is this real”, we will immediately answer - yes. But you just need to invest money wisely, and not buy all the securities that seem at least somewhat attractive.

The main way to earn money from stocks is to buy assets on the stock exchange and then sell them. The circuit seems relatively simple:

1. A purchase of securities is made on the stock exchange.
2. The owner keeps them for a certain period of time.
3. When the price begins to fall, you can make a sale.
4. Profit is recorded and income from the transaction is calculated.

The principle is simple - buy cheaper and sell more expensive. But there are many nuances in this scheme that deserve additional attention.

Trends are one of the factors for making money

When trading securities, you need to take into account trends. According to the principles of economics, cost is regulated by balancing supply and demand. The more in demand a product is and the smaller its quantity, the more expensive it is.

What are trends? This is the movement of the chart in one direction for a certain time. Of course, the line cannot have an ideal structure; sometimes drawdowns occur. Therefore, you need to study the overall chart for a month, quarter, or year to clearly see trends.

In certain periods, sharp rises and falls are visible. How trends actually work:

• traders study the market and find assets that will soon grow;
• buy securities;
• their activity stimulates a rise in value;
• other players notice the trend and join it, supply remains the same, but demand increases, which affects the cost;
• saturation occurs, the last traders are already buying shares;
• when a stock index is at its peak, many investors begin to sell assets to lock in profits;
• supply increases and demand decreases, resulting in a drawdown.

The charts on the Internet show how in certain periods shares fall in price, then begin to rise. All changes are related to the activity of investors in the market.

What types of investments are there?

All types of investments can be divided into three main types:

1. Short-term – up to 1 month. Such investors are also called speculators. They wait for the price to increase by a certain amount and resell the shares.
2. Medium term – up to six months. If you enter the trend at the start, you can get a good income during this period.
3. Long-term – up to several years. Investors buy securities, form a portfolio and hold it for a long time.

Long-term investment is one of the easiest ways. In a few years, almost all stocks will increase in price. But it is important to select the right securities for your portfolio, analyze the situation and subsequent development of the companies of interest.

What is a briefcase?

A portfolio is a collection of shares of different companies. The main rule when investing is not to invest all your money in one position. The risks increase significantly; you can not only make serious money, but also lose a large amount.

Therefore, investors create portfolios for investing funds. They may include securities of a dozen companies that are expected to grow in the future. The shelf life depends on the wishes of the person.

The principle is simple - income from profitable positions should compensate for losses from unprofitable ones. An investor with a well-formed portfolio is likely to remain a winner.

Earnings from dividends

Dividends are one of the ways to earn money. Shareholders are the owners of the company. Therefore, they have the right to receive the profits of the organization. This is what is called dividends.

You can purchase shares of Gazprom, Sberbank and other companies that do not experience financial problems and make serious profits. But the size of dividends is not constant; there is no exact value prescribed in laws or regulations.

Judging by the reviews, the parameter can be 5%, 10 or 15. The value can be absolutely anything. But how is it installed?

1. A shareholders' council is convened, to which holders of the company's securities are invited.
2. Management announces financial indicators for the billing period.
3. Shareholders vote on a certain payment parameter for the current year.

A decision may be made to completely waive dividends. For example, this year the company did not show the best results. Then the shareholders give up the profit, it is used for the development of the organization and its recovery.

If you want to receive 100% dividends, then I advise you to turn to preferred shares.

How to buy shares?

You now know how you can make money on stocks, but where to buy them? We offer a scheme consisting of several successive steps.

First choose a broker. It is better to give preference to reliable companies with a positive reputation. Keep in mind that not all Russian brokers have access to international exchanges to purchase securities of foreign institutions. This fact should be clarified when applying.

One of the best brokers we have in Russia is Otkritie; you can open an account remotely using the button below.

It is important that brokers have a commission. Its size ranges from 0.02 to 0.5% of the transaction amount. This parameter depends on the specific company. The lower the commission, the better for you.

After choosing an organization, you need to conclude an agreement. The client visits the office and signs an agreement. A special account will be opened for you through which transactions will be carried out.

You can make a purchase or sale in the following ways:

1. By phone. You need to call the company, indicate which shares you need to purchase or sell, and their quantity.
2. Quik terminal. The program is easy to use and allows you to perform transactions yourself without directly contacting a broker.

I use the second option, it’s convenient and you can submit your application faster by phone.

Don't know how to set up the Kwik trading platform? That way:

But how much can you earn per month? No one will ever tell you the exact value. Income depends on many factors:

• success in stock selection;
• their growth, of course, one can predict that the securities will rise in price against the backdrop of good reports and increasing demand. But it is impossible to determine the exact value; it is determined by market mechanisms;
• your knowledge, in order to invest in securities, you need to study the basics of the market, all the nuances, and be able to analyze the situation;
• the chosen strategy, you can invest funds for different periods, earnings also depend on this.

Best regards, Ruslan Miftakhov

Lately, many people have been thinking about how to make money in stocks. They see this way of attracting additional income as the most profitable and enriching. But in order for these equity securities to generate significant income, you need to be well aware of the principles of the financial market. This is due to the fact that the elements of the entire price system are interconnected. If a change occurs in one sector, it will inevitably affect other sectors.

How to trade stocks

The principle of stock trading is based on constant investment, the goal of which is to make a profitable investment of funds and subsequently make a profit from sales. The work of an investor involves a continuous process of obtaining and updating knowledge in the field of interaction with equity securities. There is also a place for creativity and creativity: the ability to develop your own original strategy applicable to trading plays a big role.

Fundamental and technical analysis will help you choose the right stocks. These types of analyzes help put money where the investment will be most profitable.

Securities are traded on the stock market. You can purchase shares:

• For large companies;
• In developing enterprises;
• From specialized authorized companies.

For those who have just entered the securities market and have no idea how to work with stocks, there is the opportunity to hire a sales representative who is a professional in his field - a broker. When choosing an intermediary, the following factors must be considered:

• Broker reputation;
• Number of previous transactions;
• The result of these agreements.

Also, do not forget that intermediaries take a set percentage of the profit received for their work.

What will the broker do? He will provide a demo version of the account for learning to trade online. After a beginner becomes familiar with the intricacies of the securities market, you can begin working with a real deposit. But if the investor does not want to spend his time studying the basics of the functioning of the market, the company can take over trust management of capital. This is quite convenient, because the conditions are set by the investor himself. The best brokers today are:

1. Just2Trade;
2. Rstocks;
3. EXANTE.

Since the stock market is a complex system with its own rules and laws, which are sometimes difficult to understand even for professionals, working on it is only suitable for those who are confident in their abilities and are ready to overcome difficulties.

How to start investing in company shares

To purchase shares, you must have initial capital. The amount a trader wants to purchase securities for determines how much money is needed for trading.

Let's assume that a novice trader has opened a demo account, completed training and is ready to start working on the real stock market, but does not yet know how to work with stocks. In this case, the next step will be to select the most suitable securities for purchase (this can be done independently, or by turning to brokers for help). At the moment when they rise in price, you can immediately sell equity securities, but you can also save shares in anticipation of further growth in the value of assets. The trader's profit will be equal to the difference between buying and selling.

Experienced investors advise creating portfolio securities as an effective way to actually make money. Successful trading directly depends on the literacy of its preparation.

Trading shares on the stock exchange without investments: broker bonuses

It is also possible to benefit from stocks without investing. Brokers are well aware that not everyone has sufficient funds to invest.

Many brokers, providing their own platforms for work, offer newcomers cash bonuses for completing registration.

Where to invest this money is up to the client himself. You can withdraw bonuses only after making a fixed number of transactions. If you skillfully take advantage of such an offer, you can not only keep your money, but also make a significant profit, which is withdrawn along with bonus accruals.

What stocks to buy to make money

Many novice traders believe that the surest way to make money on stocks is to buy the most expensive ones. This opinion is fundamentally wrong. The reliability of shares is not expressed in their price, because a rise in price can be either a consequence of objective reasons or the result of external economic factors. With the same probability, tomorrow their price may fall sharply, and the investor will be left without profit (if he does not suffer losses). From time to time, buying cheaper shares may be more profitable, provided that the investor anticipates the further development and growth of the company that issued the securities.

How to choose stocks for investment: company analysis

For a trader whose goal is to invest in stocks and receive passive income, dividend-paying stocks are the best choice. Thus, the shareholder is provided with annual passive income, expressed in interest payments.

Another common misconception is the opinion that the size of the company affects the amount of risk with an inverse relationship (the larger the company, the lower the risk of losses and vice versa).

Although large companies have high annual growth rates and have a reputation, all this can become useless if the company stops growing. Those significant sums that were spent on purchasing shares from these subjects of a market economy may not pay off in this case.

The advantage of small businesses is that their shares are initially inexpensive. If you correctly analyze the possibility of further development of such a company, you can make a good profit when the company reaches a new level.

Risks when buying shares on the stock exchange

It is important to correctly assess the associated risks when purchasing shares. There are several ways how this can be done:

• Seek help from experienced experts;
• Analyze the situation yourself;
• Rely on intuition, which for most is a last resort;
• Follow economic news.

Typically, the highest profits are made by those investors who focus on such an aspect as liquidity (the ability to sell existing assets as quickly as possible at a price close to the market).

But the question is much more significant - ways to reduce possible risks to a minimum. It is not always possible to avoid losses, but it is quite often possible to minimize them. Recommended:

1. Reduce costs by competently compiling an investment portfolio;
2. Initially, try several trading options and choose the most suitable one for you;
3. If your account decreases by 5%, it is better to stop trading before the end of the current month - this will help you avoid going bankrupt;
4. Buy securities so that the risk during agreements does not exceed 2% of the capital, since it is difficult to lose 50 times in a row even with complete bad luck;
5. Use stop orders.

Compiling an investment portfolio of shares: what are the benefits?

Since the phrase “stock portfolio” has already been mentioned several times in the article, it is fair to say a few words about it. Before you begin to generate income from the sale of shares, you need to be aware that shares belong to portfolio assets.

The so-called “portfolio” reduces the risk of losses to a minimum, makes profits stable and ensures reliability when investing capital. It represents securities collected together, issued by different companies. It is desirable that companies belong to different industries.

Thus, by replenishing the portfolio with new shares, we make investments more reliable, because a decrease in the price of shares of one company is necessarily compensated by the price of securities of other companies.

How to make money on stocks via the Internet

In the modern world, it is possible to manage securities on the Internet.

The profit received depends on which method of purchasing shares the trader chooses. Let's consider the main ones:

Real trading:

• Company shares are purchased;
• The amount of earnings depends on dividends and share price growth.

Speculative trading:

• It is not securities that are purchased, but obligations to transfer them;
• Profit depends on the leverage provided by the brokerage company (if the agreed amount is 1:100, and the deposit amount is $100, then a transaction can be opened for an amount that exceeds one’s own funds one hundred times).

Real trading is less risky, but the profit from it is much less, while in the case of speculative trading, the size of the expected profit can increase significantly. Accordingly, the risk associated with loss of funds is also quite high with this method.

According to statistics, a successful investor can make a profit in the form of 40-60% per annum.

At first glance, the amounts look disappointing, but after comparing them with deposits, it becomes clear that earnings on stocks are much higher.

In order for trading to become profitable, we recommend adhering to the following tips, the usefulness of which has been appreciated by many novice traders:

1. Don't treat stock trading as a game of chance;
2. Before starting trading, it is necessary to analyze the current situation on the stock market;
3. Open a deposit in an amount within the limits to which the trader is willing to tolerate losses;
4. Do without loans and credits, they are the ones that can cause a lot of difficulties in the future;
5. Carefully study the shares that you plan to purchase, and do not buy all securities indiscriminately;
6. Develop a sense of responsibility and discipline yourself.

Who can start trading shares

Both individuals and legal companies work on the exchange, namely:

• Investment funds:

Their headquarters includes professionals in their field: analysts, traders, etc. The efficiency of their work is much higher compared to the activities of a single investor, but a novice trader should strive to organize his work in the same way as large companies do;

• Individuals – private investors:

They are often former employees of investment funds or brokerage houses, where they do not feel adequate freedom of action. Such people have enough experience to earn a decent income on their own;

• Self-taught traders:

This category includes people who have managed to accumulate a certain capital and are interested in increasing it. Unfortunately, most of them lose all their money on the stock exchange because they are unable to objectively admit their mistakes and learn from them.