In search of an additional source of income, mankind has come to investing. The Internet is full of announcements about how to make money on the shares of large companies and what is needed for this. In fact, getting a good income from investing on stock exchanges is real. Many people have already made fortunes on this. Big names such as Bodo Schaeffer, Bill Gates, Robert Kiyosaki, Donald Trump and others have proved this by living example. How can you reach for the stars and reach at least 40,000 a month on stock trading?
A brief excursion into the world of investment
The investment world has its own laws and regulations. There are also participants in the relationship - a broker, a trader and an investor. Broker and trader, in essence, perform the same function, but their message is different. The first, for example, acts solely on the instructions of the customer, that is, the investor. And a trader, he does not consult with an investor about how much and when to buy certain shares.
The law establishes that the investor does not have the right to participate in trading on the stock exchange in person. To do this, he will need to open his own office, obtain a brokerage license and start an activity, but this is all a long time. In order to buy and sell in the market, brokers and traders were created. By signing an agreement with them, the investor becomes a participant in the investment.
As Matroskin said: “To get rich, you must first buy something unnecessary, and then sell it ...” This smoothly leads to how to make money on stocks. There are only two ways here:
- Buying on price increase- such players on the stock exchange are called "bulls". The bottom line is to buy a share cheaply, sell when its par value rises.
Live example: A person is looking for opportunities to make money on Sberbank shares on the market. He monitors the current state of affairs of the company in which he wants to invest. If he sees that they are opening new branches, expanding, then things are going well, and this is a signal to buy shares. Today they cost 100 rubles apiece, and six months later they grew to 300, and the investor sells them. From this he earns.
- Buying on a decline in price - people Those who buy declining securities are called “bears”. It's about borrowing a stock from a broker, selling it at a high price, then waiting for a market downturn, and buying it low.
Live example: Suppose the same Sberbank operates. Today, his shares are worth 200 rubles per unit. The investor knows that in the next 2 months there will be a crisis, therefore, the bank's business will be shaken. He borrows shares from a broker, say 100 shares. And then he immediately sells them at market value, until it has had time to decrease (200 X 100 \u003d 20,000 rubles). Then the investor waits for the price to fall, let's say it fell to 100 rubles, and starts buying shares in the amount of 100 shares (100 x 100 = 10,000 rubles). The difference in the transaction falls into the pocket of the investor, and these 100 units of securities are simply returned to the broker.
This is the basic principles of trading on the stock exchange.
5 points for choosing a broker
If the basics are briefly understood, then you should figure out how to choose a good broker for yourself? There are a lot of things to look at first. An experienced investor knows that a good company is an average one. So, if you want to choose a broker, make up his portrait according to the following points:
- Foundation date– many people say that the more years a company has, the better it works with capital. Yes, but great experience is not always beneficial for the saver. Longevity in the market is gradually turning into a marketing tool, and the company intends to inflate the cost of its services. Or they simply overestimate the amount for the down payment, which often does not allow you to start working with this organization. Too young companies are a risk of burnout, and too old companies are a big commission for services and an exorbitant guarantor that must be paid to get started.
- Reliability- Here, first of all, you need to look at the history of the company. How many ups and downs she had, how many times she was on the verge of bankruptcy, how in terms of payments and so on.
- Billing– remember that all companies charge a commission for their services. This is where the broker makes money. Therefore, it is important how much the commission for depositing and withdrawing funds will be. Consider such a moment that each broker has a bank for cooperation. So they conclude an agreement on the condition of 0% for transfers, and so that you do not lose money, it is recommended to open a current account in this bank. So you will save on every transaction with the broker.
- Feedback from other users- Listen to what people are saying. Only not purchased reviews, but real users of the services of a particular broker. Look for discussions on the forum or on social networks. Talking to someone who has already had experience with a broker will greatly help you save or increase money.
Here are the main points that are considered when choosing a broker. Approach this matter with full responsibility: it is better to spend an extra day on candidate analytics than earning new capital for several months, which is guaranteed to be merged by the wrong brokerage house.
How to buy Gazprom shares
One of the most relevant companies, the shares of which Russians and residents of the CIS countries want to buy, is Gazprom. This is a stable organization that is constantly developing, as it works with the national property of the Russian Federation - gas. Brokers allow the consumer to be closer to the gas pipeline and earn on the securities of this company.
If you are thinking about how to make money on Gazprom shares - in the long or short term, then it is better to stay on the long-term option.
Gazprom shares are steadily rising by several points every year, so a long-term investment will bring less risk and more profit. You can make a purchase of securities of this organization by becoming a full member of the Moscow Stock Exchange. For this you need:
- Decide on a broker.
- Draw up an agreement for depositary and brokerage services.
- Download the trading application to your PC.
- If required at the request of the broker, then it will be necessary to perform additional steps regarding the registration of a personal account.
- Take the keys from the broker to use the program.
When all this is ready, just go to the application for work and start trading on the stock exchange.
How and where to monitor stock prices
Well, when things seem to have gone well, the investor has registered on the site and is ready to trade, but how can one calculate how the stock indicators will behave?
“No one knows if stocks will go up, down or circles…”
© Matthew McConaughey "The Wolf of Wall Street"
In fact, it is quite possible to predict the behavior of the trend - for this you need to look at the quotes. Quotation is an indicator of the state of affairs of the company. They rise when the organization develops and fall when the firm fails. On the Moscow Exchange, indicators are issued with a delay of 15 minutes, which is not critical if you are going to invest for a long time.
However, there are traders and brokers who play short stocks, and for such, this delay will cost money. If you make several purchase / sale transactions per day, then for greater accuracy it is better for you to spend money on acquiring access to the trading terminal. This will allow you to instantly track changes in the quote and build strategies for the rate.
Mandatory commissions and payments
The brokerage company is not a philanthropist who provides free services. They take a commission and they don't care how well you are doing. The commission may be:
- for each purchase or sale of a security;
- monthly deductions from the account;
- withdrawal of a percentage of the amount of input / output of funds to a personal account.
The commission almost always depends on the percentage of your turnover. But so that everything is not so sad, the broker changes the percentage depending on the volume.
For example, if you deposit $1,000 into your account, the broker will take 1%; if you deposit $100,000, the withdrawal fee will be 0.02%.
Different financial structures offer all sorts of conditions, so study them carefully so that the dividends from the shares go into your pocket, and not to pay the trader's remuneration.
Storage and taxation
In fact, physical securities are not scanned or even printed anywhere. The brokerage house has its own center where all the necessary valuable documents are stored, and it is called depositary.
When an investor signs a contract to work with a company, a special account is opened for him to track his purchased assets. Issuer - a company whose shares are acquired by the investor, equally gets access to this data.
Any profit from trading on the stock market in the Russian Federation is taxed at 13%. This calculation is based on the tax base - in the case of the purchase / sale of securities, it is the amount of profit that the investor receives on top of his contribution. This means that only the percentage that you have received through successful trading on the stock exchange is taxed.
The state also taxes dividend stocks, and the loan they take is 9%. Fortunately, any brokerage works as a tax agent between the client and the FISF, so nothing extra is required from you.
Withdrawals
When you have received some profit, you will want to withdraw it, but everything is not so simple here. Taking and withdrawing money simply in hand will not work, because first they are transferred to the bank, and then they are issued at the cash desk. This procedure is established by the current legislation in order to combat money laundering.
Buy shares online
If you decide to trade stocks on the stock market via the Internet, follow a few simple rules of any competent investor:
- Never trade without risk diversifying your capital.
- To get started, create your investment portfolio.
- Better stop using leverage.
As for the first rule, money loves calmness and account, and if you don’t bet carefully, you will quickly burn out. The investor is always guided by the saying: "Think of the best, prepare for the worst."
*Data for 2015
And using leverage from a company is sheer stupidity. Things can take such a turn that you will sag or completely lose your capital. Whether it's an accumulated investment portfolio - it's a shame, and okay, BUT when it's money borrowed, there will be problems with payments. When these rules are taken into account, you can start buying.
And finally, now you understand how to buy securities to trade on the stock exchange and make money on stocks online. You also know how to choose the right broker and save on his commissions, how taxation applies to an investor and his profit. Then it's up to you - remember, the investor must be cold-blooded and think ahead.
Good luck in trading!
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