Investment is the foundation of modern economic life. There are many facilities where you can invest your money. We will consider how to invest in stocks. What do you need to know for this? How to choose a broker? Is it possible to buy shares by ordinary citizens of the Russian Federation?
general information
Many people have heard about this, but few know how to invest in stocks. Why is this option attractive? First of all - this is the opportunity to obtain high profits. Of course, there are corresponding risks (but they are everywhere, even when opening a deposit in a bank). But maybe the fact that it is almost impossible to completely go broke on stocks will give strength to act confidently. Of course, the risk of losing part of the savings remains, but as they say, who does not risk, he does not drink champagne.
Earning opportunity
There are three areas:
- Earnings on the difference in courses. In this case, the meaning of the scheme is that we buy shares, wait until they become more expensive, and sell. Of course, it makes no sense to use it in relation to the first available securities. It is necessary to carefully analyze stocks that have a desire to buy.
- The game for a fall. This means borrowing shares from a broker and selling them at a high price. After that, the securities are redeemed at a low cost and returned. The profits go into your pocket.
- Dividends. Participation in the division of the company's net profit is implied. Suitable in cases where the organization is growing steadily and steadily.
Regarding the advantages of working with securities, we can say the following:
- You can start with small amounts.
- The profit potential is very large.
- The possibility of obtaining high income (higher than what banks offer when placing deposits with them).
Work with securities has its drawbacks:
- High risks. They can be leveled with the help of existing knowledge, but this does not guarantee their disappearance.
- Commission from the broker. There may be several options: it is taken regardless of the result or only on the amount of profit (this is popular when he recommends investment objects to his clients).
Who is a broker and how to choose one?
We continue to figure out how to invest our savings in stocks. A broker is a regular intermediary that works between the client and the exchange. He assumes responsibility for the purchase of shares, and also provides people who trust him with data on the market in which he operates. Regarding the choice, we can say that there are numerous ratings that will give an idea of what and how it should work. When familiarizing themselves with their characteristics, special attention should be paid to such information as trade turnover, cost of services, the availability of the opportunity to interact in real time (for the client), a simple and quick procedure for formalizing relations, and also additional information provided by the broker.
Beginners can be positively affected by the availability of free training, a low amount of money, webinars, as well as competent and adequate staff. It will also be good if there is a physically close office or branch. It is also necessary to pay attention to the ease of depositing funds and withdrawing money. When you have already made your choice, it will be useful to check if the selected office is not a "kitchen". This is the name of organizations that achieve their own goals at the expense of customers.They will not help to acquire the shares of companies, but will only deceive all the money. It should be noted that in this area there are quite a lot of scammers, so you need to keep your ears open.
Where and how can I buy shares for the average person?
Let's find out how you can purchase securities. For this we need a broker. Thanks to him, you can buy any shares of companies that only exist on various trading floors. Stock markets in Europe, USA, India, Australia, China or the Russian Federation will be available for interaction. The broker will need to open an account, deposit money and choose a tariff plan that provides access to the necessary trading platform. Then we select the securities you like, look at the course and leave a request, informing in such a way that there is a desire to purchase them.
Convenient is the form of interaction via the Internet with the help of special programs. Among the popular samples you can offer a choice of QUIK and MetaTrader5. It should be noted that no matter which purchase method is chosen, the shares will be presented in a virtual form. The paper form, already familiar to many, has long been canceled. When someone purchases securities, two entries are made. One is in the company about a new shareholder (or a change in the share of the old), the second at the broker. Before investing in stocks, you must select them. To do this, you can follow the recommendations below.
Select an attachment object
It should be noted that there are many different approaches. You can take expert advice, technical or fundamental analysis, or just act at random, relying on your intuition. In this case, liquidity plays an important role. This is the name for the ability to quickly buy or sell the required amount of securities.
But it would be most reasonable to study at least the fundamentals of fundamental and technical analysis and be guided in making their decisions on them. You can also study the value of shares and their change over a certain period of time (month, quarter or year). Initially, it can be problematic to do everything at the highest level. But do not worry, get experience, and in the future it will be possible to talk about low risks.
How to minimize costs?
A high stock price is good, but you still need to be able to reduce your spending. To do this, in most cases, it is enough to adhere to certain rules:
- When a transaction is concluded, its size should not exceed two percent of the account value.
- Build a differentiated investment portfolio. It will help minimize potential risks.
- Decide on a trading style. You can try several options and choose the most suitable. In this case, the initial capital, skills and free time that can be given to the exchange will have a strong influence.
- Do not shy away from stop orders.
- If there is no desire, time or opportunity to manage your account personally, trust management may be a good option.
Purchase of shares of leading Russian enterprises
Traditionally, the most reliable are the blue chips. They are characterized by stability and prestige. Perhaps the reader of these lines had a desire to buy Gazprom shares. Well, know that this is entirely possible. Moreover, you can buy not only Gazprom shares, but also the securities of many enterprises in general. We suggest you familiarize yourself with this list:
- Aeroflot;
- VTB;
- Lukoil
- "Magnet";
- MTS;
- Rosneft;
- Rostel
- Sberbank
Very famous companies, right? Of course, it will be quite difficult to get a controlling stake in some company, but you can start to have a bright future for yourself and your children today. It should be noted that at the time of writing, stock prices of almost all enterprises continued to fall. Therefore, we can assume that they are at the lowest level (or near it).That is, now is the time to invest!
We examined how to buy shares of domestic enterprises, and now let's pay attention to foreign companies. After that, theoretical training will be given to get an idea of what to look for when acquiring securities. By the way, when we invest in shares of Russian companies, we support the domestic economy. In the future, this will have significant advantages for us.
Shares of foreign companies
Often on the Internet you can find complaints that it is impossible to find a company, thanks to which it would be possible to go beyond the framework of the Russian Federation. This is largely due to a number of features. But first, let's find out what you are counting on? Usually, when talking about foreign companies, they become hostages to the stereotype of success. But after all, each enterprise is individual, and with such an approach it is problematic to make money. So, you need to understand that not all companies have access to a large market, high profitability, production capacity, affordability of investment and other attractive qualities. The situation is the same as ours - there are units of very successful enterprises, investing in which is a profitable business. But this leads to high prices.
Someone is interested in how to invest money in shares of foreign companies, because he is ready to invest tens or even hundreds of thousands of rubles. But this is not enough, because the minimum goes for several million dollars! There may be mistrust in these words, so let's look at a few specific examples. There is an international financial corporation that finances medium and long-term private sector investment projects. The minimum amount of investment depends on the selected project and ranges from 100,000 to 1,000,000 dollars. Agree, an ordinary citizen of the Russian Federation does not have such money. Also an example is the European Bank for Reconstruction and Development, in which investments can start with an amount of $ 500,000. The reliability of such investments is great. But it should be borne in mind that investments are made for at least 3 years (although a ten-year period is not a maximum). This, by the way, explains why they are not spoken of as investment management companies.
Features of investing in foreign companies
Does the above information mean that for average people the path to such an investment is closed? Not. Mutual funds help overcome this limitation. investment funds. To do this, you need to choose a broker, replenish your deposit (though, here we are talking about the amount of 3-5 thousand dollars) and choose the term of investment. Keep in mind the fact that, in addition to companies with experience, startups can also be chosen as an investment object. This is an attractive area that pays off at times. But at the same time, it is also very risky - for example, about 80% of start-up companies stop their work in the first year after the start of business. In general, the yield does not exceed 20% per year (when working with mutual funds).
Also, as an alternative, you can consider not only investing directly in stocks, but also in binary options. Their essence boils down to the fact that a person predicts how the price of an asset will change. Thus, payments go for successful forecasts. But there are many pitfalls and lovers of easy money, so if you want to use this tool, you need to be very careful and be very attentive to the company (as well as delve into all the mechanisms of its actions).
Nuances
We have already addressed many issues. And they constantly talked about how to work through an intermediary. Now let's figure out how to invest in stocks without a broker.If we talk about those securities that are not traded on exchanges, here intermediaries are not needed. It is quite another matter if they have already gone through the process of initial public offering of securities - IPO. Here, as a rule, work is possible only through a broker. Pay attention to one feature. The fact is that some "blue chips" can be purchased without resorting to the services of an intermediary. The good news is it? But there is one “but”. This is only used when working with long-term investments. By the way, banks can offer a similar service. Of course, it should be borne in mind that these financial institutions will take a commission (prepare mentally for five percent), but in the long run this, as a rule, is not so important.
By the way, if we touched on this topic, then let's find out in which shares banks invest their funds. After all, if these large financial institutions have money and direct them to securities, then they also have professional analysts who weigh risks. So let's pay attention to them. Say right away, there will be no specific names and titles. Just a outline of the general scheme. So, it is important to invest in the valuable shares of other banks, as well as enterprises that are actively developing. Moreover, the level of growth of the latter should be several times higher than the national average (or equal to it, but this is only in relation to companies whose development is stable). They also invest in government bonds different countries (but so that profits exceed risks and expenses), corporate securities and shares of mutual funds.
Conclusion
So we figured out how to invest in stocks. The information presented here is not enough to become a millionaire the next morning, but it is enough to get the theoretical minimum that is enough to start conducting your own business along this path. After all, you always have to start from something, from some kind of zero, from a starting point. And each person has access to long-term investment in blue chips, which will create a base. The accumulation of capital in an honest way, alas, is a long-term business and takes a significant period of human life. It is possible that only children can fully sow the seeds of commerce. But even this is more than enough to take action.
