Interested in earning money in the financial sector? For more than a decade, a fairly popular way to make money is to play the stock market. In this article we will tell you how to play on the stock exchange, whether such work is suitable for everyone, what to do for a beginner who first appears on the site, and whether it is really possible to win money in this way.
"The wolf of Wall Street"
Games on the stock exchange became popular with us after the release of large films such as “The Short Game” and “The Wolf from Wall Street”. But even before that, Forex Club, Intway and other companies have been advertising their services for more than ten years, giving anyone who wants access to the stock exchange or currency exchange.
Even general ideas about this method of earning create the illusion that everyone can play the exchange without investments and special skills, and quite successfully. Meanwhile, when you come to the introductory course from the same "Forex Club", such a question involuntarily arises. If everything is so simple, then why, the one who tells you about the delights of such a job, himself does not win huge sums on the sale of foreign currency? Why do those who give access to the Internet platform for the sale of shares themselves do not make money at the auction?
To these questions, these people give a beautiful and non-evasive answer. It lies in the fact that they simply do not have the economic grasp and the necessary instinct in order to earn big money on the exchange. It turns out that such specialists can easily tell how to play and win on the exchange, recognizing that everyone can try their hand, namely, not everyone can win.
What needs to be done on the exchange?
Most often, when they talk about the game on the stock exchange, they mean precisely currency trading. In this article, we will talk about how to play on the currency exchange, as well as on the sale of stocks and bonds, and if you feel interest in this topic, you can try your abilities for free. There is no fraud in this, as any service provider will gladly give you a free account to test your strength.
Why currency?
The most popular way of exchange games today is the ability to earn on currency fluctuations. Let us briefly explain what the essence of such a game is, especially since it is for money.
As you know, millions of events occur in the world every day, but only dozens, if not ones, are really important. For example, elections of the president or members of parliament, news about the harvest or, on the contrary, crop failure, natural disasters, revolutions, the crash of airplanes or ships, armed clashes, terrorist acts can be considered such important events.
Why does currency price fluctuate?
Each country has its own currency, which shows the current situation in the country. This is logical, since the financial system is a mirror image of economic and social phenomena. A peculiar measure of the currency is the dollar. It is no coincidence that it is called a conventional unit. The financial system of America from the beginning of the twentieth century to this day is the strongest in the whole world. Even if you do not have an economic education, you know that the value of real estate, movable property and most world currencies are tied to the dollar. Linking to it largely determines the economic situation of any country.
How to play on currency fluctuations?
As mentioned above, the exchange rate of any country is not something fixed and can fluctuate depending on what is happening in the social or economic sphere of the state.Suppose Russia has announced that this summer is extremely successful in terms of harvesting. What does this mean for the state? Russia will have enough of the harvest, not only to meet the needs of its citizens, but also in order to sell products to other states. This will attract an influx of foreign money into the country. Does it turn out that a good harvest is profitable for Russia? Of course. This means that after the announcement of this news, the domestic currency of Russia (ruble) will strengthen. Figuratively, we can say that good news positively affects the exchange rate of the domestic currency.
Why does the domestic currency "suffer"?
As we found out above, positive events have a stronger effect on the country's domestic currency. The reverse can also be noted - negative events (such as terrorist acts, armed clashes) lower the value of the country's domestic currency on the world market. Sometimes the internal currency also has negative dynamics due to seemingly neutral events.
A good example would be the recent election in America. After winning the Trump presidential race, the American currency (dollar) fell in value against the Russian currency (ruble). It would seem that how the election of an official can affect the value of the domestic currency? The thing is that in this case, the expectation of citizens of the country and other states plays a big role. Because of this, the purchasing power of a currency can rise or fall. In any case, such events must be predicted if you want to become a successful exchange player.
How to play the exchange on the Internet?
A beginner may not immediately understand what the game based on currency risks is based on. But in reality, everything is simpler than in the grocery market. We draw such an analogy. Imagine that today apples cost 10 rubles per kilogram, but you have a hunch that tomorrow apples will rise in price and will cost 15 rubles already. Moreover, unlike ordinary fruits, these apples are in demand, and it will be very easy for you to resell them tomorrow.
A person even without an economic education understands that for this example it makes sense to buy apples today to sell them tomorrow is already more expensive. The resulting difference (margin) will be your win. We return to our currency exchange. Let's say today 1 dollar costs 58 rubles. But for some reason you think that tomorrow the dollar will cost 60 rubles already. Of course, it’s profitable for you to buy a dollar today. The more you buy it, the more your revenue will be. When you feel that the currency will rise in price, and buy it, this is called a game of promotion. If you assume that there will be a fall in the currency, this is called a fall game. In fact, now you know how to play on the Forex exchange.
By the way, many are interested in what the word "Forex" means. This is not really the name of a company or exchange. "Forex" is an abbreviation consisting of parts of two English words - foreign exchange, which translates as "currency exchange".
Do I need start-up capital to play on the stock exchange?
Now another question is interesting when you got acquainted with the basic principles of playing the stock exchange. Can I play on the stock exchange without investments? Of course, it’s scary enough to risk large sums of money without having tried your hand at first. In fact, it is possible, and those who provide access to exchanges are sure to give beginners a try on a demo account.
If you are interested in how to learn how to play on the stock exchange, then a demo account is exactly the option that will help you to understand without loss whether the game in the foreign exchange markets is just for you. A demo account allows you to enter your personal account and see what is happening in real time on the currency market. You will have virtual one hundred dollars without fear of losing money. Thanks to this account, you can try to make your predictions even today, if the exchange rate rises tomorrow or decreases. Of course, it is not necessary to play with world currencies such as euros or dollars.You can choose British Pounds or Japanese Yen. You can also bet on several currencies, if you have any assumptions about their dynamics.
How to play stocks?
On the exchange, you can perform transactions not only with currencies, but also with stocks. Stocks are securities that determine your ownership interest in companies. Large companies, in order to attract capital, issue them.
Each share is a certain part of the company in cash. One who owns fifty percent plus one, in fact, owns the company and decides its fate. What is the essence of owning one share in addition to fifty percent? The fact is that the majority of shares provides the right to own a company.
However, having released them, the company cannot fix their value. This is the essence of the game on stocks.
Why is the stock price changing?
A few decades ago, a brand called Apple, as we know it today, was located in a garage, consisted of six people and owned only a few items of office equipment. This company was unknown to anyone and did not produce equipment on the scale that operates today. What do you think, how much did one Apple stock cost then? Very little. Let us assume that it was one conventional unit. But time passed, the company was developing, production was getting better and even went beyond the borders of the country. Over time, Apple has become a huge international brand, a world-famous corporation, and the share price has increased not twice, and not ten times, but in thousands.
Now imagine for a second that a couple of years ago you decided to buy several shares of Apple. Having invested only a few dollars in securities, today you could become a millionaire. This is the essence of the whole stock game.
Is it really necessary to wait several years to get rich on the sale of shares? Not at all. On the stock exchanges, you can perform transactions of short duration, since their value varies from day to day depending on social and economic events.
The most “interesting” promotions for the game
The most popular are deals with companies whose stocks cost very little. Most often these are young startups who offer innovative equipment, mobile applications, computer programs. You may be lucky, and you will invest in a modern analogue of Apple, and in a few years you will become rich. Small startups are developing much faster than before, and you won’t have to wait so long.
Do I need special education for exchange operations?
Now that you know a lot about the game in the currency and stock markets, you can try your hand at a demo account, which will be absolutely free for you. But can an ordinary locksmith or a cook become an outstanding player on the exchange? Or is it the lot of economists and financiers?
In fact, no university in the world will teach you economic instinct. Yes, you can know some formulas, and even learn to predict the future based on the present, but a subtle economic sense is akin to a gift with which you can only be born. This is the answer to the question why university professors "do not raise" a lot of money playing on the stock exchange.
Fundamental and technical analysis
Even if you have a so-called “scoop” for price changes, in any case, you can not do without an analysis of events on the world stage. As mentioned above, it is events of a planetary scale that have the greatest impact on price fluctuations. Fundamental and technical analysis is needed here, these are two elephants in a game on the exchange. Such an analysis implies that if you decide to make the game on the stock exchange a matter of your life, then your morning, day and evening will be accompanied by a constant reading of the latest news. To learn more about how to properly analyze events, you can read specialized literature. The book “How to Play and Win at the Exchange”, for example, will help you.Since the topic of currency games is popular and in demand today, there are many useful sources for broadening one's horizons.
What are the benefits of intermediaries?
As mentioned above, in order to enter the stock and currency exchange, you need to contact intermediaries, those who will give you such an exit. Why are they doing this and what is their profit? Such people are more often than anyone else interested in your winnings, as they provide their services on special conditions. In essence, this is an ordinary transaction. They provide you with a convenient interface for work, good Internet speed, contributing to the fair display of the dynamics of price changes, help in the withdrawal of money earned. You will have to give them a percentage for such intermediary services.
Summarizing
Now you know how to play the exchange on the Internet. For beginners, you can advise starting with a demo account. But whether you manage to win is already a matter of practice. If you manage to win on a demo, then you can try to play on the exchange with your own money. The minimum contribution is one hundred dollars.
It will not be superfluous to also master the basics of fundamental and technical analysis, to figure out how to play up and down, to fix losses and possible profits. There are many useful books for this written by financial gurus.