How to make money in stocks: First Steps

often hear phrases that need extra income, as well as something like "I want to earn money."One of the most interesting ways to make money is to trade in the securities market.The stock market allows you to earn extra income, do not keep working (or not leaving the house).This contributes to the development of technology, the availability of the Internet and a sufficient amount of the investment and brokerage companies.The most understandable, popular and accessible tools are the shares.Since earn promotions - it's not so simple, you need to familiarize yourself with the basic concepts of the securities market.This may help books, courses and seminars brokerage firms.

First, determine for yourself - how much you're willing to devote to investment in shares.Keep in mind that you can make money on both stocks and lose money in full, so the start is with a small (comfortable for your budget) amount.

followed by search for a brokerage company, since, according to the laws of Russia, to make transactions on the stock exchange is possible only through the intermediary - the brokerage firm.Find a reliable brokerage company is simple - in the financial portals have a rating of the largest investment companies and brokers.Keep in mind that for each transaction, the broker holds a commission, so it is advisable to see the rates of brokerage services.Moreover, reliable and reputable brokerage firms conduct training courses, workshops and seminars where you can learn how to make money in stocks and other investment instruments.

third step - the choice of investment strategy, it depends entirely on your preferences, available time, a willingness to take risks.There are two basic strategies: active and passive.The active strategy of behavior of the stock market suggest that investors are constantly reviewing the structure of the portfolio.That is often buys and sells shares, depending on the situation on the stock exchange.Supporters of passive strategies are set to the minimum number of transactions, their task - to find a cheap (undervalued) share and sell it for a high price in the future.How to make money in stocks?The main principle of trade on the stock exchange - "Buy cheaper to sell more expensive."The main difference in the strategies of the stock market - the time interval between the acts of "buy" and "sell."

fourth step - to determine what action will enable to implement the chosen strategy.If you are an active investor, you pay attention to the "blue chips", since most of them consists of transactions, they are the most liquid - to buy or sell them at any time of the exchange.Shares of the second-tier fit passive investors, since there are frequent nedootsennnye paper.Of course, these recommendations are general in nature, such as Sberbank, being a blue chip, rose (from 14 to 110 rubles per share), which made it possible to make excellent long-term investors.Within this period also experienced large volatility of the stock, enabling active investors capitalize on the shares of Sberbank more.

Another answer to the question of how to earn promotions - is receipt of dividends.The campaign - is not only an object of speculation on the exchange, but security and equity, which grants the right to receive part of the profits of the company.Common shares do not guarantee this right, owners of ordinary shares receive dividends only if management of the company will take a decision at the end of the fiscal year.On preferred shares receive dividends are guaranteed, but the holders of these shares can not participate in managing the company.