The process of trading on the stock exchange is usually called trading. Its main goal is to make money on various financial transactions with currencies, shares of large companies, futures and more. The Forex market is also related to trading. For those who want to make money on the securities market, online trading can be a good start. The main process of trading on the stock exchange is carried out through brokerage companies and autonomous brokers - they act as a link between the stock exchange and the trader. Naturally, the broker needs to pay a commission from his income.
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You can also join the exchange trading on your own, but in this case you will have to invest a lot of time and money in this activity. After all, a trader without a broker will have to independently obtain a license in order to be admitted to trading, as well as study the work of the market. Without training in this sector of trading, an ordinary person has nothing to do. In addition, to participate in the trades, you will need to pay a significant entry fee. Another necessary investment is the purchase of a licensed program for trading on the stock exchange. You understand that it is much easier to start working with a broker with a relatively small starting capital. Especially if you are a newbie on the stock exchange.
Today, a huge number of brokerage companies are successfully operating on the Internet, with the help of which anyone can start making money on the stock exchange, having a small reserve of funds for investment. The broker will provide you with the necessary tools for trading on the stock exchange. The brokerage company will not only give you access to the stock exchange, but will also conduct preliminary training. After that, you will be able to independently use the tools of the programs for traders provided to you.
If you plan to work from home all the time, pay attention to the fact that stock exchanges work according to their own schedule. The working hours of some of them differ significantly - it all depends on which trading exchange they belong to. When choosing an exchange resource for trading, be sure to take this fact into account and choose those platforms that are open at a convenient time for you. The second point that you need to pay attention to is the commission required by a particular brokerage company. Too high a commission will deprive you of a normal income - look for companies that approach commission issues adequately.
No professional broker will give you a clear answer to this question. Too many factors ultimately affect the earnings of the average trader. You should not "fall for" the advertising that tells you that you can make a huge income in the first month of trading on the stock exchange. This is not true. There are no frameworks that really limit a trader in earnings. But this is in theory. In practice, everything is much more prosaic. On average, traders who responsibly approach trading on the stock exchange "raise" amounts that make up about 20% of the funds they invest in trading. Even very successful traders rarely reach 40%. Accordingly, earnings will depend on the size of your investments.
Novice traders are recommended to start with the least risky option of working with stocks or futures. Over time, you will understand the process of earning money on these instruments. With your first experience, it makes sense to try your hand at working with derivative instruments or switch to Forex. The main thing is a lot of regular practice and strict financial discipline. Do not risk too much, minimize the amount of loss, reduce the number of unprofitable transactions to a minimum, and the first profit will not take long to come.
Absolutely every trading strategy is based either on maximizing profits or minimizing risks. Both of these factors are opposed to each other. The task of each investor is to choose a strategy with the optimal ratio of risk and profitability factors when trading stocks. All strategies are divided into conservative and aggressive. However, there are also moderately aggressive ones. Beginners are advised to choose conservative (with a minimum level of risk) strategies so as not to drain the initial deposit in the first days of work on the exchange.
Money management rules:
Trade only your own funds. No loans.
Do not invest all your investment capital in one asset or one broker.
Do not increase the volume of the transaction by an amount that will exceed the initial volume by 10 times.
Avoid large losses.
The optimal amount of losses per trading day should not exceed 2% - 5% of the deposit amount. These figures should be used as a guide when using stop losses.
Try to make the amount of profit 3 times greater than the amount of losses.
Do not open a large number of transactions at the initial stage.
There is no universal formula. Therefore, you have to shovel tons of information to choose the most suitable partner. Pay attention to the size of the commission, the level of software, the range of available services, and, of course, online reviews.
Many brokers have special, starting offers for beginners. Study these sets of services from several companies to assess the prospects for further cooperation.
Evaluate the recommendations of experienced traders, the length of service in the market, as well as the authority that the organization enjoys in professional circles.
