As you know, they have been earning their shares for many years, and so far it has not lost its relevance. Is stock trading a source of permanent income or is it just a good marketing move by brokerage companies? Find the answer to these questions will be in this article.
In order to learn how to make money on stocks, it is necessary to understand the principles of the functioning of the financial market. The fact is that all the mechanisms of price movement are closely intertwined with each other and the change in one link entails the inevitable reaction of the other. The system of stock trading is based on investments, with the purpose of profitable investment of means with their subsequent sale. It is one of the most profitable and effective in the whole world.
But profitable trading of shares can only be when the investor knows all the subtleties of the market movement. He must enrich his knowledge every day and develop his own trading strategy.
In order to choose the right stock, you need to use fundamental and technical analysis. With the proper use of these analyzes, you can see where to invest better, and where it is worthwhile to wait.
The entire process of trading takes place in the stock market. Is it possible to get there a beginner, and how to make money on promotions in such an unfamiliar and unusual place? The answer is simple - you need to choose a reliable broker who will provide a demo account for training. Having learned to trade in real time, but only on a training account, you can proceed to work with this deposit.
The stock market operates according to its rules and laws. There it is very difficult to work even for professional investors, not to mention novice traders. Therefore, do not trade, not being confident in their abilities.
How to choose the right tools
The most common mistake of many novice players thinking how to make money on shares is buying the most expensive shares. They can sharply rise in price because of influence of external economic factors, but it does not mean, that these actions the most reliable. Today the market has turned in their direction, and tomorrow the price will be much less, and the investor will lose the invested funds.
Sometimes it's better to buy cheaper stocks, but only if the trader sees the potential growth of the companies that issued them.
If the investor's goal is investing in shares to receive passive income, then you need to choose securities with dividend deductions. Thus, the holder of shares can receive an annual passive income in the form of interest deductions.
How to make money on promotions
Let's say that a novice player opened his account, was trained and ready to work in the stock market, but does not yet know how to earn on shares on a real stock market. The next step will be the choice of shares that will need to be purchased. As soon as the price goes up, it will be possible to sell securities, or wait for further growth. The difference between buying and selling and will make a profit.
Some experienced investors advise to create their own securities portfolio, which helps to really make money in the financial market. Only for successful trading you need to make it right. This can be done both independently and by contacting special companies.
How much you can earn
In practice, there are several ways to purchase securities. Depending on the chosen trading option, the profit will be added.
In real trading, when the company's shares are bought, the profit will depend on two components:
- increase in the value of securities.
Real trading is less risky, but less profitable.
When speculative trading is purchased not the shares themselves, but the obligation to transfer them. In this case, the size of the potential profit increases at times. This is due to the leverage that the brokerage company provides. If the size of the leverage is 1: 100 and the amount of the deposit is $ 100, then the transaction can be opened for an amount that is a hundred times higher than own funds.
This type of financial trading in securities is highly risky, but the profit can also be much higher and faster than in real trading.
So how much can you earn on promotions? In general, statistics show that a fairly experienced investor in the stock market may well earn about 40-60% per annum. Of course, these are not grandiose amounts, but much more than deposit interest in banks.
Tips for beginners
You do not need to treat securities trading as to roulette. This is a very serious and responsible work that requires constant monitoring of the situation on the world market. While studying the news, it is necessary to analyze the situation and only then start trading.
In order to work in the stock market with a cold calculation and a sober head, you should open a deposit only for the amount that is ready to lose. Do not get into debt and loans, otherwise everything can very badly end.
Do not also refer to the stock market as a supermarket of securities, buying up all the shares therein in a row. Professionals advise to learn in advance the shares of those companies that are planned to purchase, and then buy. Only knowing how to make money on stocks, you can make it a core profession.
The main criterion for successful trading and, as a consequence, the receipt of a stable profit is the discipline of the investor. That is why beginning players, succumbing to the first successes, lose their composure and all their deposits.
Asked about whether you can make money on stocks, the investor will receive an affirmative answer, but only with a competent approach.