How to start trading on the stock exchange - detailed instructions. Trading for dummies: what to read for a novice investor How to trade profitably on the stock exchange

Trading is the process of trading activity on the stock exchange. The goal is to make a profit from transactions with various financial instruments: company shares, currencies, futures. This also includes forex trading. Online trading is a good start for those who want to receive dividends from buying/selling securities.

The trading process goes through a broker - a link between the trader and the exchange. For intermediary activities he is awarded a certain percentage of commission. Anyone who has decided to try their hand at stock trading can, subject to a number of conditions, join electronic trading from their computer.

This article gives a general understanding of how a beginner can make money on the stock exchange at home. You will begin to seriously study the specifics of trading when you decide that the business is interesting and will bring profit in the future.

Trading through a broker frees you from difficult conditions and costly investments for a beginner. To be able to trade on the exchange, you must do the following:

  • obtain a license to carry out activities with preliminary completion of a special training course;
  • pay the entrance fee. Some exchanges allow the client to trade after making a fixed amount - a contribution, the amount of which reaches three million rubles (MICEX);
  • purchase an expensive licensed program on the basis of which the exchange Internet resource operates.

If you cannot spend a lot of money on a license and entry fees to work on the stock exchange without intermediaries, turn to the services of one of the many brokerage companies. With their help, you will gain access to the resource and make financial transactions yourself.

Brokerage companies with the possibility of trading via the Internet

There are many exchange platforms online. Reliable ones - Finam, Uralsib, VTB, Alfa Capital, Troika Dialog. These are major players who enjoy the trust of customers. Before admission to real trading, the brokerage company offers to undergo training - and you will be ready to independently use the tools of the trading program.

The opening hours of stock exchanges vary depending on which trading exchange they are linked to. Therefore, before deciding to choose an online resource, decide on a trading time that is convenient for you. Consider the size of the brokerage company's commission; this will determine how much you will ultimately earn.

Stock trading for beginners

Volatility, or price change

Volatility is an indicator of changes in the price of a financial instrument. The stock market is characterized by low volatility, when the value of shares changes slightly, rising and falling within one trading day. It is not easy to make money with such a pattern of stock price fluctuations.

A large amplitude of exchange rate changes is called “high volatility.”

An experienced trader remembers that for each purchase and sale on the exchange, the broker charges a commission, which covers the profit received, as is the case with low volatility. Therefore, wait until the stock has significantly increased in price and act. If trading volatility is low, do not count on significant profits.

What do you do to make money on the stock exchange?

A novice trader works taking into account all the circumstances that arise on the site on a specific trading day. To do this, you need to carefully monitor the actions of experienced players, analyze rates, study information on global financial markets, and be aware of political events - they play a huge role in movements on the stock exchanges. Follow a specific strategy:

  • work with a broker who charges a low percentage for services;
  • trade with high volatility.

As you gain experience in this area, learn to take into account all the nuances of market strategy, and it will become easy to assess your trading position. An intuitive feeling will appear. Such players act riskily, but time passes and it becomes clear that the steps were justified.

Choosing a brokerage company

To decide on an intermediary, study information about brokers operating in your region. And also find out commission rates and terms of service.

Invite brokerage houses to write down an example point by point with the same initial conditions and evaluate the final results of their calculations: estimated income, commissions, net profit from the purchase/sale of shares (currency). The broker's credibility, market experience and traders' recommendations will help you make the right choice.

How difficult is it to start working on the stock exchange?

Trading on stock markets does not instantly bring satisfaction and positive results. Many cannot stand it emotionally and psychologically; for others, all this seems technically difficult. According to statistics, one or two out of ten people join the process of stock trading - those who like it.

For trading on the site to bring positive results, you must:

  1. Familiarize yourself with theoretical material on the topic of economics and finance.
  2. During the trading session, keep yourself in control and be able to manage your psycho-emotional state.
  3. Constantly gain work experience.

With a detailed examination of these points, it will become clear what to do in order to successfully trade on the stock market.

Theoretical knowledge

This information includes basic trading information. Having mastered them, you will understand how complex financial processes occur in the economy. This will be useful for an objective assessment of the market situation. Economic terms will become more than empty words - stocks, forex, options, volatility, liquidity, trend. These concepts are important to everyone who is going to engage in stock trading.

The ability to read charts, analyze financial news, respond in a timely manner to events in the country and the world (changes in oil prices, currency fluctuations) - all this will help you choose a strategy and tactics for playing on the stock exchange and will be the key to success in the future. Below are examples of possible daily trading charts.

Uptrend

An uptrend chart shows that prices have risen. According to the rules of the exchange, when the value of shares or currencies rises, you must buy. If you manage to make a purchase at the beginning of the trend, then after a while, having reached the peak, the price will begin to decline, and you will sell the shares (currency) and make a profit.

Downtrend

A downtrend chart shows that prices are declining. Wait for the bottom point, and after the reversal, buy assets. When shares continue to fall in price, the practice is to purchase them on credit from a broker and sell them at the current price. When it drops even lower, they purchase shares to return to the broker. This is how profit is formed in a downward trend.

Sideways trend, or sideways trend

The sideways chart shows that the market is in a stage of uncertainty. There is no obvious movement of the stock either up or down. Players choose a line of strategy and act according to this plan. Some wait for the bottom to buy assets at low prices, while others manage to sell them at a high price during a downward trend. And still others manage to make money on the sidelines.

Stop loss. How it works

When trading, stick to your plan and don’t deviate from it. Explore the capabilities of the trading program and use a set of software exchange tools. Know how to analyze, do not be afraid to act.

For those who want to explore all the possibilities of the resource and want to know how to make money on the stock exchange on the Internet when the user is not at work, there is a special function - stop loss. It helps a trader reduce losses when stocks fall and make money on their growth when it is not possible to constantly be at the computer.

The user sets a stop loss, that is, fixes the price. When the shares begin to fall in the absence of the player, when this figure is reached, the stop loss will be triggered, and they will be sold at the price fixed by the trader, which is high compared to the prices when the shares collapsed. This feature helps save money and reduce losses.

Psychology of stock trading

In terms of emotionality, trading on the stock exchange is similar to gambling. But it seems so to a beginner - it is difficult for him to refrain from rash actions at the decisive moment, when he needs to weigh everything. Unable to withstand the intensity of trading, they buy when they need to sell and sell when the stock has not risen in price. Such novice traders are left with an empty wallet and leave the site.

Useful experience for making money on the stock exchange

A trader’s work experience consists of training time, acquiring initial skills and actual full-time work. Everyone has their own time frame for success. Some take years to understand all the intricacies, while others earn decent money at the initial stage.

Constant improvement of skills, study of financial science, interest in stock exchange news, orientation in the world of stocks and currencies will bring you closer to positive results. An experienced trader is luckier than a beginner, but there are exceptions that confirm the rules.

It is foolish to expect that success in this area will come overnight. There will be ups and downs, losses and profits. We need to prepare for this.

Which market to work in?

There are three main types of exchange markets:

  • stock market, trades shares (MICEX).
  • urgent, specializes in the sale/purchase of futures and options (RTS).
  • foreign exchange, carries out transactions with dollars, euros, yen.

A potential trader himself decides which exchange will generate income and chooses a suitable platform for trading.

Practice doing practice trades early in your career as you will be dealing with big finances. This will help you secure your transactions in the future.

Learn from a good instructor. Many companies and brokerage houses provide the opportunity to attend trading training courses. There are also programs for training in working with financial markets. Don't miss this opportunity to enlist the support of a mentor.

Try your skills in real trading. Once you have already gained enough experience on demo accounts, you can move on to a more professional level. There are currently very few truly successful traders out of the total number of players, so it is difficult to say which strategy to choose.

Work more on “short positions”, when the buying and selling process takes place within 1-2 days. This is necessary in order to secure your activities in an unstable market and insufficient experience. Many people speculate on “long positions”.

Think of stock trading as a real, highly profitable specialty. An experienced trader will never interpret his activities as just a game or entertainment. Cultivate patience, integrity, and a willingness to take action and make mistakes.

Constantly develop and progress in your chosen business. Remember that only 2-3 people out of 100 will become truly successful players on the stock exchange and then themselves will be able to manage the capital of other people. Strive for these heights.

note

Pay attention to the starting capital. You won't get by with just one hundred dollars.

Helpful advice

Improve your trading skills every day and you will become a professional.

Sources:

  • Economic news portal and more
  • play on the stock exchange via the Internet

Before you start taking specific steps to find a broker, find out the terms of play on the stock exchange, the size of the commission, and so on, you need to clearly and clearly decide on the main thing: why do you want to play on the stock exchange?

Most professional traders wince when they hear the phrase “play the stock market” because they work to make money on the stock market. If you want quick and easy, then you are in the wrong place. Most likely, you need a lottery or casino. If you are ready for serious and painstaking work, then you have chosen the right path.

Now about the specific steps.

1. Amount. Decide on the financial amount you are going to. Be prepared to lose it. You have to pay for everything, including learning to play the stock market. You cannot invest your last savings in the stock exchange.

2. Exchange. Choose the exchange on which you are going to earn money. You can choose Forex and make money on exchange rate differences between world currencies. There are plenty of tempting offers on the Internet to enter this market. Earn money on the MICEX by buying and selling. Riskier futures trading can be mastered as an experienced trader.

3. Choosing a broker. Before choosing a broker, you should carefully review their terms of service, commissions, pricing plans, credit conditions for margin trading (that is, trading on credit), and fees for custodianship of shares.

4. Internet. If you are going to trade on the stock exchange in a fairly dense mode, you need to take care of a reliable, preferably unlimited, connection with the ability to insure yourself in case of hardware failures in communication with the provider. This can be done by setting up your cell phone as a modem, and keeping this channel just in case of emergency.

5. Training. You can play on the exchange for free in demo mode with a virtual account, usually 1 million rubles. Carrying out transactions completely imitates work on the stock exchange. This method is good for familiarizing yourself with the program, but it is very controversial for real training, since it is much easier and calmer to sacrifice virtual money.

In the format of this article, it is very problematic to prepare a person for real trading on the stock exchange, for working with technical indicators, understanding the trend, its support and resistance levels. There is a lot of specialized literature for this. Only the following important points need to be taken into account:

1. Try to trade with the trend. Don’t just enter a position at random. Every step must be thought out.

2. Be sure to hedge your positions with stop loss orders to minimize your losses. Do not average your position, otherwise you will quickly turn from a player to an investor, or to bankruptcy.

3. Don't be greedy. Get out of the position in time, acting according to the rule: “You earned it yourself, let others earn it.” Remember the words of the most successful trader in the world, Warren Buffett: “Minimize your losses, and the profits will follow”

Video on the topic

The stock exchange is currently seen by many as a source of almost “free” money, as a symbol of prosperity and financial well-being. It may be so, but it’s just the hardest work. If anyone views the stock exchange as a betting game like a betting game, then one should only sympathize with their savings. So, the stock exchange is not a game, but a job!

Instructions

Firstly, it is impossible to beat the exchange; it is not a rival, but a . On the stock exchange, owners of shares (raw materials, precious metals, currencies) and those who want to purchase them meet. In Russia, the expression “win on the stock market” is common, but it does not mean a game in literal words, but a source of income. Americans, for example, say “make money in the market”? this is a more reliable option. Remember: when we say “play and win on the stock market,” we mean work.

The first thing a stock exchange player needs to know is “leverage”. This means the opportunity to enter the market with 1-2 thousand dollars and take out a loan without interest and commissions, ultimately receiving an amount several times greater than your initial capital. At the same time, it constantly monitors your transactions - as soon as you have carried out an operation that has used up all your money, leaving only borrowed funds, your account is blocked and the great and terrible “margin call” is issued. The last concept means a request to top up your account. It's simple.

If everything was really that simple, then the world would already be bursting with money bags. You can become a millionaire in a couple of days only if you are a billionaire. To play and win on the stock exchange (to work and earn money), it is advisable to have an economic education. You cannot buy shares (currency, raw materials, precious metals) at random - this is a direct road to poverty.

The most common methods that traders use on the stock exchange are fundamental and technical analysis. The first refers to a thorough examination of the economic indicators associated with the asset you are about to purchase. If your goal is currency, then you need to analyze the country’s GDP, demand for goods, various indices, bank discount rates, etc. If a trader decides to buy shares, then he studies the financial condition of the corresponding company; if raw materials, he will need information and forecasts for supply and demand in soon. When using technical analysis, a trader looks at how the market behaved before, and based on this data, identifies a trend that, in his opinion, will repeat in the future. In this way, adherents of technical analysis try to guess the behavior of the exchange.

Recently, supporters of these two types of analysis are beginning to converge in their views. Many argue that it is best to “mix” forecasting methods. This point of view seems logical, if only because no fundamentalist can do without asset price charts before a transaction.

Sources:

  • How to become a trader

The Moscow Interbank Currency Exchange (MICEX) is a large trading system for the sale and purchase of shares in Russia with a wide range of information and consulting tools. Working there is attractive for traders (participants) due to low commissions and high liquidity of financial instruments.

Instructions

Work on the MICEX includes several areas: foreign exchange market, stock market, government securities market, commodity market. Work on the exchange is underway, and other credit organizations are participants. As a private trader, you cannot apply directly, but you can do so through a participating broker. For cooperation you pay a certain commission, and in return you receive a special program through which you will go

Technically, working on the stock exchange is not difficult. You observe changes in stock prices in the provided program, take advantage of consultations and information published on the website. You make a decision to buy or sell and submit the appropriate application (for example, to buy). And if there is a corresponding sell order on the exchange, the transaction is completed. After some time, when the price rises, you place a new order, now for sale. The second part of the transaction is completed and you receive a profit, a percentage of which you pay to the broker, the rest is credited to your trading account opened in the system. The first stage of the transaction is called “open a position”, the second is called “close a position”. When a position is open, the state of your trading account is in limbo, however, most terminal programs have an automatic closing feature - stop-loss (literally “stop losses”) minimizes losses if the price moves in the opposite direction to the predicted one, and take-profit (“take profit”) - closes the deal as soon as the price reaches the desired level. Thanks to these features, you don't have to constantly sit at the terminal.

Many brokerage organizations practice initial training for new traders and periodically conduct seminars. Take advantage of this opportunity. The process of playing on the stock exchange seems simple only on the surface. In fact, this is a complex mechanism that involves not only economic factors, but also many others (political, social, psychological). Therefore, it is important to arm yourself with the necessary knowledge at the very beginning, so as not to lose all your money at once and not be disappointed in the stock exchange game. Because with skillful work it can become a source of good income.

Video on the topic

note

The main volume of exchange trading in Russia is carried out on the MICEX.

Helpful advice

When choosing a broker, you can go the opposite way: select a suitable terminal program on the Internet, and then look at the organizations that use it. Ultimately, this is your main tool and assistant. Carefully read the terms and conditions of the brokerage company before concluding an agreement.

With the development of the Internet, trading on the stock exchange has become available to millions of people. The opportunity to make easy money attracts many, but out of a hundred traders playing on the stock exchange, at least ninety-five lose. According to statistics, only 3-5% of traders win. Is it possible to become one of them and what is needed for this?

The Moscow Interbank Currency Exchange (MICEX) has existed since 1992. In 2012, it was merged with RTS and renamed Moscow Exchange OJSC.

Almost immediately, the updated MICEX became the best Russian stock exchange, both in terms of the number of clients working on it and in terms of trading volume. Today the Moscow Exchange is one of the twenty largest in the world.

The principle of operation of the Moscow Exchange

The Moscow Exchange carries out transactions with currencies, securities, shares of exchange-traded funds, futures, options, precious metals and other financial instruments. Clients of the trading platform are credit institutions, management companies, non-state pension funds, exchange intermediaries, institutional and private investors who work on the exchange through intermediary brokers. The main work at the Moscow Exchange is concentrated in data centers, where powerful equipment and special software necessary for conducting and recording exchange transactions are installed. Investors send applications for transactions through trading terminals that are connected to the Internet. All information received from users is recorded in the exchange database.

The Moscow Exchange pays special attention to security. It is impossible that personal data will be stolen or lost: every transaction carried out in the system is certified by the investor’s electronic signature.

How can a beginner start trading on the Moscow Exchange?

There is nothing complicated about starting to trade on the Moscow Stock Exchange. To gain access to the Moscow Exchange, you need to perform a number of simple operations:

  1. Find a suitable broker. The domestic securities market is structured in such a way that individuals cannot trade directly on the stock exchange. Therefore, all stock exchange transactions on behalf of private investors are carried out by stock brokers. Finding an intermediary is where you should start trading on the Moscow Exchange. The general list of trading participants is presented on the exchange website.
  2. Select a tariff. You need to start working on the stock exchange by choosing a tariff plan from a broker. To do this, soberly assess the volume of transactions you plan to make. Traders who do not carry out too many transactions on the exchange will benefit from tariff plans with a fixed minimum fee for brokerage services. Active investors should compare rates to see what fees are charged based on the volume of trades made over a given period: generally, the higher the volume of trades, the lower the transaction fees.
  3. Conclude a service agreement with the broker. There are two ways to do this: without leaving home, open an account remotely through the government services portal or personally come to the office of a brokerage company. When visiting in person, you must have a set of documents with you, a list of which can be found on the official website of the intermediary. After the conclusion of the agreement, a brokerage account will be opened in the name of the applicant.
  4. Select a trading terminal. To start trading on the Moscow Exchange, you need suitable software. Each broker offers its own version of a trading terminal, sometimes even of its own design. The list of the most popular ones includes QUIK and MetaTrader 5.
  5. Set up the software. To configure the software, we recommend watching a video course on working in the QUIK program or a video course on Metatrader 5.
  6. Deposit funds into the account. Even for “dummies” it is no secret that it is impossible to trade on the Moscow Exchange without money. Therefore, before you start real trading, deposit some money into your account. This can be done either through the bank’s cash desk or through numerous online services. It should be remembered that the money in the account is not insured, so the trader takes full responsibility for incorrect transactions. Therefore, before you start trading on the stock exchange, you should thoroughly study all the intricacies.

How is trading conducted on the Moscow Exchange?

There are three main markets on the Moscow Exchange, and each of them has its own operating schedule.

The stock section of the Moscow Exchange is the base platform where you can invest in Russian or foreign assets. This section is available to both residents of the Russian Federation and residents of other countries.

The start time of trading on the main market of the Moscow Exchange is 10:00 (MSK), the pre-trading period starts at 09:45.

Main trading takes place from 10:00 to 18:40 (MSK).

On the currency section of the Moscow Exchange, Swiss francs, US dollars, pounds sterling, euros, Chinese yuan and Hong Kong dollars are traded in two delivery modes - TOD (for today) and TOM (for tomorrow). All currencies are traded against the ruble.

Trading time on the currency section with TOD delivery mode:

US dollars - from 10:00 to 17:15 (MSK)

Swiss francs, pounds sterling, euros - from 10:00 to 15:15 (MSK)

Chinese yuan and Hong Kong dollars - from 10:00 to 10:45 (MSK)

Trading hours on the currency section with TOM delivery mode for all currencies - from 10:00 to 23:50 (MSK)

The derivatives section of the Moscow Exchange is the territory of futures and options contracts. The list of the most popular assets includes the RTS index, currencies of different countries, oil, gold, and raw materials.

The pre-trading period on the derivatives market starts at 9:45 am. Trading begins at 10:00 and continues until 23:50 (MSK).

More detailed information about the trading schedule can be found on the Moscow Exchange website.

For beginners, trading on the stock exchange, also called Forex trading, can become an exciting hobby and an excellent source of investment income.

Which ? While billions of dollars circulate daily on the stock exchange, trading turnover on the Forex market has long exceeded trillions of dollars. This suggests that you can make a lot of money without having to make too much of a down payment, and predicting the direction of the market can be a lot of fun. You can trade the Forex market in many ways.

Forex blog Forexone has prepared for you an exclusive article about starting the game correctly on the currency exchange. This is a detailed instruction on how to achieve success as a novice trader and start making money in currency trading. Only 5% of you will be successful, who will strictly follow all the recommendations, rules and use trading tricks.

Take advantage of the review of the 15 best strategies for making money on the foreign exchange market and the most will bring you profit. You have a chance to be one of the small number of successful players on the stock exchange. Read carefully and take action!

Basics of stock trading for beginners

First, you will need to understand the basic Forex terminology:

  1. The type of currency you are spending or getting rid of is the base currency. The currency you purchase through trading is called the quote currency. The basis of Forex trading is the sale of one currency in order to purchase another.
  2. Exchange rates- these are the indicators that will tell you how much you will need to spend the quoted currency in order to purchase the base currency.
  3. Long position means that you want to purchase the base currency and sell the quote currency to do so.
  4. Short position means that you want to purchase a Forex quoted currency and sell the base currency for this.
  5. Bid price will be called the one at which your broker wants to purchase the base Forex currency in exchange for the quoted currency. The bid is the best price at which you want to sell your quoted currency on the market during the trade process.
  6. Ask price– this is the offer price, that is, the price at which your broker will sell the base Forex currency in order to exchange it for the quoted currency. The ask is the best available price at which you will want to buy in the market.
  7. Spread– this is an indicator of the difference between the bid and ask trading prices.

Once you have mastered the basic terminology of trading for beginners, you will need to learn how to read Forex quotes. You will always see two numbers in Forex quotes – the bid price on the left and the ask price on the right.

How to choose a currency pair

In the next step, you will need to decide which currencies you want to buy and sell:

  1. Make economic forecasts. If you believe that the US economy will continue to weaken, which is bad for the US, then you will most likely want to sell US dollars in exchange for the currency of a country whose economy is quite strong.
  2. Study the country's trade positions. If a country has a large number of goods that are in demand, then the country is highly likely to export many goods in order to make money. Such a trading advantage will accelerate the development of the country's economy and thereby increase the value of its currency.
  3. Follow the politics. If a country has an election, then the value of the country's currency will increase if the winner of the election has a responsible and sound fiscal plan. Also, if a country's government loosens controls for economic development, then that country's currency will increase in value.
  4. Study economic reports. Reports regarding a country's GDP and GNP, for example, or reports regarding other economic factors such as unemployment or inflation, will have an impact on the value of a country's currency.

How to calculate profit in the market

  1. Pips is an indicator that measures the change in value between two trading currencies. Typically, one pip equals a change of 0.0001 in value.
  2. Multiply the number of pips your account has changed by the exchange rate. This calculation will show you how much your score has increased or decreased in its value.

Choosing a broker for trading on the stock exchange for beginners

Choosing a broker always starts with a little research. And if you want trading on the stock exchange for beginners to bring you the desired results, then pay attention to these factors when choosing a broker:

  1. Look for a broker who has been in the industry for 10 years or more. Longevity will indicate that the company knows what it does and how to best take care of its customers.
  2. Be sure to check and make sure that the brokerage you choose is regulated by major regulatory authorities, which will give you confidence in his honesty, reliability and transparency of his work. In the United States, these bodies include the National Futures Association (NFA) and the Futures Trading Commission. In the United Kingdom, this is the Financial Conduct Authority. In Australia – the Australian Investment and Securities Commission. In Switzerland – Swiss Federal Banking Commission. In Germany – the German Federal Financial Supervisory Authority. In France - State Commission for Regulation of the Financial Services Market.
  3. Find out how many products and services your broker offers. If a broker, in addition to Forex trading, also conducts trading transactions with securities and commodities, for example, then you can be sure that your broker has a large client base and a stable company.
  4. Read broker reviews, but be extremely careful and careful. Sometimes, some unscrupulous brokers visit review sites and write review articles themselves to improve their reputation. Reviews can give you a good idea of ​​a broker, but you should always verify this information.
  5. Go to the broker's website. It should look professional and all links on the site should be active. If the site contains a lot of references to information that is “coming soon”, or the site itself somehow looks unprofessional, then it is better to stay away from such a broker.
  6. Check the cost of each trading transaction. You should definitely find out how much your bank will charge you for transferring money to your Forex account.
  7. Focus on the essentials. You will need good customer support, simple transactions and complete transparency. And, of course, your broker must have a good reputation.

Once you have decided on your choice of broker, you need to request the necessary information to open an account. You can open a personal account or you can choose a managed brokerage account. With a personal account, playing on the stock exchange for beginners will depend only on you. And if you choose a managed account, then your broker will execute the trades for you.

Once you have chosen the type of trading account, fill out the required documents. You can request these documents either by email or download them from the broker's website, usually in the form of a PDF file. Make sure you check the cost of transferring money from your bank account to your brokerage account. Such fees reduce your income.

Eventually you will need to activate your account. Typically in such cases, your broker will send you an email containing a link to activate your account with the broker. Follow this link and follow the instructions to open your game on the exchange for beginners.

3 main stages of playing on the stock exchange for beginners

To open a trade in the stock exchange game for beginners, you will need to go through several basic steps.

First, you will need to analyze the market situation and its events. To do this, you can use several different techniques:

  1. Technical analysis, which includes chart views or historical information to accurately predict which direction a currency will move based on its past movements.
  2. Fundamental Analysis, which is based on studying underlying economic factors and events in order to apply this information to make your trading decisions.
  3. Event Intensity Analysis, in which you try to analyze market sentiment in order to understand whether the market is in a “bullish” or “bearish” stage. When you can't correctly determine market sentiment, you often make a good guess that will definitely affect your trades.

In the second step, you will need to determine the margin. Depending on your broker's policy, you may be able to invest small amounts but still make large trades.

For example, if you want to trade 100,000 units with a margin of one percent, then your broker will require you to invest 1,000 to guarantee the security of the account. Your profits or losses will either be added to your account or reduced in size. For this reason, an excellent general rule is to invest only two percent of your funds in a particular currency pair.

After you have analyzed the market and determined the size of the margin, you need to place a trade order. Playing on the stock exchange for beginners allows you to place different types of orders, such as:

  1. Market orders.
    With these orders, you instruct your broker how to execute your buy or sell at a specific market rate.
  2. Order limit.
    These types of orders instruct your broker to execute your trades at a specific price. For example, you can buy a currency when it reaches a certain price, or sell a currency when it falls to a certain level.
  3. Stop orders.
    Such orders are a request to purchase a currency at the current market price (in the expectation that the value of the currency will rise) or to sell a currency below the current market price in order to cut your losses.

After placing orders, you need to monitor your profits and losses. The main thing is not to be led by emotions. The Forex market is very volatile and you will see quite a lot of ups and downs. What you need to do is continue your analytical research and stick to your trading strategy. And over time, you will achieve the desired profit.

To make trading on the stock exchange for beginners a source of profit and positive trading experience for you, then follow these recommendations:

  1. Try to focus on using 2% of your total. Forex prices are quite volatile and you will want to make sure you have enough funds to cover your risks.
  2. Start playing on the market for beginners by opening a demo account before you invest real money in currency trading. This way you can understand whether trading is right for you. Once you make good trades on a demo basis, then you can move on to real trading.
  3. Remember that losses are not real until your trade is closed. If your position is still open, then your losses will only count if you decide to close the order and accept those losses.
  4. If a currency pair goes against you and you do not have enough funds to cover the continuation of the order, then your order will be automatically cancelled. Make sure you don't make this mistake.
  5. Limit your losses. Use special stop loss orders to limit or avoid unwanted losses.
  1. Make sure your broker has a physical address. This can be done by turning on street view in Yandex or Google maps - you should see a sign with the name of the broker on the building that is listed in the contacts. If a broker does not have an address, do not start cooperation with him, so as not to become a victim of fraud.
  2. The vast majority of traders in the market (95%) fail. If you become familiar with the most common obstacles to successful trading, you will increase your chances of profit. To do this, you can consult with a reliable money manager.

For beginners, playing on the stock exchange is an exciting and multifaceted trading process, but it will become profitable only if you carefully prepare for organizing trades and take into account all the recommendations and advice.

Greetings, dear subscribers and guests of my blog! Today the word “promotion” (not to be confused with discounts in a hypermarket!) is familiar to almost every high school student. Hundreds of thousands of Russians trade them, traders and investors exchange experiences and give advice.

Here in Russia, a quarter of a century ago, everything was just beginning, and now many participants in those events receive a good increase in their pension in the form of dividends. Do you want to ensure a decent and active old age? Then it's time to figure out how to trade stocks on the stock exchange.

When Russian citizens received their first securities during voucher privatization, only a few knew how to choose the right shares, where they were traded, where to sell them later or, conversely, buy more, and how to learn to determine the right moment for buying and selling.

Since then, much has been simplified: securities have become uncertificated, they are traded via the Internet, and many training courses for beginners have appeared. Of course, courses are good, but the knowledge and experience of practitioners is no less useful.

Today I will try to dispel the fears of those of you who are almost ready to trade stocks, but are not quite sure that they will succeed. First, let's refresh our memory.

What are shares

A share, as is known, assigns to the owner a number of rights, which include the rights to part of the property (in case of liquidation) of the joint-stock company, as well as part of its profit in the form of dividends, to participate in shareholder meetings, and also (if there is a large block of shares ) to participate in the management of the company.

To become a shareholder, first of all, you need to purchase shares, which is documented in the form of an entry in the register of shareholders. There are several ways to solve this issue. The easiest and most convenient way is to become a client of a brokerage company.

An individual does not have direct access to exchange trading and the intermediation of companies licensed for this activity is the only opportunity to trade securities at market quotes.

Why do you need a broker?

Are transactions possible without a broker? Yes, they are possible. For example, two individuals may enter into a share purchase and sale agreement. It must contain the following information:

  1. Type of shares (simple or registered).
  2. Issuer, i.e. name of the joint stock company.
  3. Nominal price of 1 Central Bank, i.e. price at the time of issue.
  4. Number of papers in pieces.
  5. Current price of 1 share.
  6. The full amount of the transaction.

The right to own shares passes from one owner to another only after appropriate changes in the register of shareholders. To do this, an entry is made in the register about the transfer of ownership from the seller to the buyer.

A necessary condition is a transfer order from the seller to the registrar. In addition, additional annexes are drawn up containing the procedure for resolving possible disagreements. The buyer opens a personal account in the register where the shares will be accounted for, for which a special questionnaire is filled out.

Agree, this method is labor-intensive and can be used when the shares are not in circulation on the open market, or if the transaction is made at prices that differ greatly from market prices. In addition, trading without a broker is complicated by problems finding sellers and buyers.

It is also possible to purchase shares directly from the issuer (in case of an additional issue, after a buyback and in some other cases). But beginners do not need to delve into such subtleties, since such transactions are usually carried out in order to restructure blocks of securities between large shareholders.

So, if you decide to trade shares through a broker (the issue of choosing a broker is a separate topic), you must enter into an agreement with him for the provision of brokerage services.

The agreement specifies the rights and obligations of the parties when the broker executes client orders, as well as the procedure for processing transactions by the clearing house. After this, all that remains to be done is to download the program - a trading terminal and start trading.

But the question of stock selection remains: which ones to start with? Russian brokerage companies like, or, allow you to trade not only Russian stocks, but also American ones.

How to choose stocks

For example, the Finam company allows you to gain access to trading on the Moscow Exchange (until December 2011 MICEX) and on the New York Stock Exchange NYSE (colloquially “Nice”).

All transactions can be made from a single trading account. To make the right choice, it is useful to compare the returns of Russian and American stocks. Here's what's happening in the American information sector in 2017:

For comparison, TOP-3 among Russian ordinary shares included in the MICEX index.

However, there is a so-called second-tier shares, more risky, but potentially much more profitable:

What may be difficult for beginners is that these shares are less liquid, i.e. if necessary, they are more difficult to sell. The ratio of securities traded on the open market in Russia is shown in the diagram:

So still: which ones are better to trade? To do this, you need to analyze a number of factors:

  • State of the industry to which the company belongs
  • Growth potential of the stock (actual profitability, whether it is overvalued or undervalued)
  • Dividend history of the company

For example, shares of Mechel JSC by the summer of 2014 fell more than 90 times relative to the January 2011 high. The company was in a severe crisis. But the competent work of management made it possible to save production and now the securities are trading 15 times higher than their minimum with great potential for further growth.

Need to keep in mind

People often ask how to trade stocks on Forex. Forex dealers themselves sometimes impose this service on beginners. But this is a lie. The instrument traded in such companies is called CFD (Contract For Difference).

This means that the trader does not buy shares, but makes money on the difference in quotes for a certain period. This is also possible, but with real stock trading, you become a shareholder with all the ensuing rights, and if something happens, the money will not be lost along with a shell company, of which there are many among Forex dealers.

Books are constantly being published on the topic of stocks, both classics and new ones. A good reference for beginners is:

And if you want to take an express course in technical market analysis, get acquainted with the popular QUIK trading terminal and prepare for real trading, watch this free video webinar from the guru of the Russian market - Dmitry Mikhnov. It will be interesting!

Afterword

In this article, my goal was not to teach you how to trade stocks. I just wanted to show that there is nothing complicated about it.

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