Many now wonder: "Where to start, if you wish to trade on the stock market?"You can find the answer in this article.
You need only a beginning investor or trader think about what to do
sosvoimi savings, as before it inevitably raises the question: "Where do
I start?" In fact, do not put the same money at ridiculous interest to
the bank. Such interest, then to the same and still not get it.
If we consider also the very real prospect of losing to the same bank
at all the entire amount, then the profit from this money order is quite
obvious. About such thoughts tormented author, when he thought about the unenviable fate of investors who trust money every fraudsters. Perhaps this gave rise to, to go on the thorny path of speculators. Of course, first of all, the author was faced with the same question - "Where to start?".
Easy question touched by this, but this does not easily felt.
It is not necessary here to reproduce all the way in which the author
had to go before he knew what to do when there is intention to sell the
stock markets.
With over a lot of mistakes made solely because of lack of knowledge
and experience, he decided to present here its basic ideas on how to get
the same, strictly speaking, should begin. So the first question to be solved, looks simple enough. It goes something like this: "What markets will I trade?" But this question seems simple at first glance only. In fact, it is dangerous, because not paying him enough attention, can be quite realistic in a deadlock. The thing is that every market its own peculiarities.
They are thus inevitably give rise to certain "pluses" and "cons",
which, in turn, to each individual have the weight higher or lower -
depending on his personal preferences. To make it easier to deal with this issue, try to consider the order of all its constituents. This will bring ideas into the system. First of all, we should find out the geographic location of trade. In other words, in what market on a territorial basis are likely to trade? For Russian investors and traders of such points are basically three: Russia, Europe and the USA. Some, however, may turn to other markets - Australia, India, Asia in general, etc. - But it is rather exotic.
In each case, the procedure is almost the same: we must choose a
brokerage firm to open an account, well, then you can trade, not
forgetting, of course, promptly transfer the money. But they must not in the first place, but at least until after you read this article. The second problem is related to the first and may require more time to think about already earlier decision. The problem is to figure out what to trade. This question is not idle. News agency Bloomberg in early 2000 reported that it translates market data on approximately 2.5 million of financial products. To see all of these data, spending on each product for only one second, you will need one month of continuous work. Hardly anyone wants to experience such pleasure in itself.
To really solve this problem refer to the so-called "market segmentation". In simple terms, each type of financial instrument refers to a specific segment. There is a market the property (equity). Here is the most active market for corporate equity (stock).
There are also market bonds (bonds), which is usually divided into the
market for corporate bonds and government debt securities.
Also, the best known is the commodity futures market (commodity), where
operations are performed on futures, not only in goods but also for
foreign currency and index. Finally, mention should be market cash foreign exchange transactions - the market Forex. There are other, smaller, but in this case is not so important.
How to understand all this and what is preferable? Usually it is a personal matter, so here is extremely difficult to advise. As a rule, investors and traders worried about their capital, preferred stock and futures markets. Some are drawn to trading currencies.
Here you need to pay attention to one fact: the selected segment of the
market very closely related to what area you prefer to trade.
If you are going to trade futures, but in Russia you would not be where
to turn, unless you are going to specialize in one or two financial
instruments. The most developed market futures are on the right is America where you can find even trade contracts on the temperature. The same can be said about the stock market.
Once you are at least tentatively decided what to trade, you should
ponder over the way in which to receive data from the market and how
much it will cost. The question is important, and in any case should not be discounted, since it can easily affect the earlier decision. To make it clear what I mean, imagine the following picture. You set out to trade on the European stock market. How much you will be able to find sources of information? How much you will be able to find programs that can be considered as alternatives? In any case, efforts will be spent a lot. At the same time on the U.S. market, information is more than enough - even from her is not easy to hide!
Accordingly, the most intense is to offer software products that
provide an analysis of the U.S. market just across the full spectrum of
financial instruments. The same can be said about the data providers. This is important because it determines the choice of acceptable values unavoidable costs. In addition, ordinary investors and traders to connect to the stream of data, now used as a rule, the Internet. As practice shows, it's easier to get data from the United States than in neighboring Germany.
Now it's time to think about why, in fact, it's all done. Question with a clear "podkovyrkoy." Ninety-five percent of traders, and perhaps more, respond to it like this: "To make money." Unfortunately, this answer is incorrect.
If you start c such reasoning, it is better, in fact, include money in
the bank, even with dubious prospects for getting them back. After all, monetary loss in this case are almost inevitable.
Correct answers may sound something like this: "To successfully
invest," "to better manage their own means", "in exchange for some risk
of additional revenue," etc. The difference in the responses to you, obviously, is quite small. In fact, it is huge. To understand this, refer to the solution of such problems as market analysis.
Thus, the next step you need to understand the principles of market analysis. At the present time in this regard, there are many theories and a variety of opinions. One of the most common ways is a technical analysis. What is it?
This approach is based on the assumption that the use of different
indicators, as well as study the configurations of price bars will help
in predicting the market situation in the future.
The fundamental analysis and called it misleading to the opinion that
by examining the economic environment, we can achieve better results.
In practice, both of them are idealists, because no single approach can
not guarantee complete success and can not save you from making serious
mistakes. The only way - is a mix of both approaches through their own common sense.
In a study of how to conduct market research, anticipating the
fundamental solution for the trader, please refer to publications that
are devoted to this topic - technical and fundamental analysis. Now the reader can read and extremely helpful with the magazine as "Technical Analysis: Stocks & Futures."
As the study of the foundations of analysis, as a rule, there is redefining the market. This leads to the need to revise their understanding of the tools that are used in the analysis.
Deeply penetrated into the specifics of the market analysis may well
be, you realize that you need a completely different software products
that provide the analysis.
Even if such a feeling does not arise at this stage it is recommended
to reflect on the question: "How to conduct a market analysis?" In other words, what package of technical analysis should opt?
At this point, at least preliminarily determine what type of trading you are going to spend.
This is an extremely important issue, since four main alternatives: Day
Trader (trading large quantities of paper with the fixation of small
quantities of exchange rate changes within 1 / 8 or so), intraday,
intraday trading (involves opening and closing trading positions within
the trading day) short-term trading (Short-Term, - generally understood
as trade, the length of a few days), and finally, the long-term trading
(Long-Term, - this usually refers to the sale, which lasts from 30-40
days). As you can imagine, depending on your preferred investment horizons and the choice is the aforementioned types of trade.
And only now are faced with: "Through a broker to trade?" It is clear that the choice of broker and the terms offered to them depends on the type of shopping behavior. If you intend to sell within the day, you should contact the company that provides direct access to the "shelf space". Short-term trading is not so demanding, there may well be to limit the usual on-line broker. In the long-term trade often enough and the phone. Of course, it should not be taken as dogma, but be based on yet to be.
The commission, the quality of software products that provide input
orders into the system (if this is not done through the Web-browser),
the connection to the server broker; speed and quality of the input of
orders - these are quite unimportant little things that should be
carefully weighed before handing preference for a particular firm.
And here not hurt to find out, through which the company operates the
clearing brokerage firm you are interested, how the routing of client
orders, what are the reviews for this company.
In the resource site are the coordinates of NASDAQ, which can be found,
for instance, met if the negative moments in the history of a firm. And to make it highly recommended! Sometimes it's important and how broad range of financial instruments that can be traded. This is especially true for the commodity futures market.
You need only remind the industry of providing services to the market
as stocks and futures in the U.S. and several developed countries, is
working so steadily and so tightly controlled that many brokerage firms
do not just come to mind to make out two copies of the contract. To some this seems a fraud, but, once popularly said one fund manager, "to steal a lot harder here than in the bank." That is why the contract for brokerage services - a contract of a public offer, has the form of a unilateral agreement.
This is similar to a deal that you make when buying a magazine: giving
money, you are practically agreed on the conditions the opposite side. In the case of a broker agreement is expressed in the presence of your signature.
So if you have the desire to have a contract in his desk drawer, do not
forget to make a copy before you send a copy of a brokerage firm. When it comes to American or British company, it is all the more necessary.
When the choice is made, has no choice as to jump into the stock-market abyss.
It is true that the most meticulous and cautious investors will not
take the time and will work on drafting rules management portfolio. In any case, "fundamentalists" (those who adhere to fundamental analysis) devote this much time. Ardent supporters of the technical analysis involved in designing and testing trading systems. The opposite positions are those who bow to the science of money management (money management).
They tend to view everything through the prism of stochastic processes
and statistical series, or operate on mathematical formulas that allow
to calculate all the parameters of risk and return. Whatever it was, in reality, none of the types of approach to trading can not guarantee the success of 100 per cent. The market simply does not tolerate certainty - any certainty he immediately rejects. This will help you understand the spectacle of bullfighting. How to behave at the arena the bull in the face by waving a red rag?
Never forget that everything in this world is changing. What you yesterday seemed deserving of respect, the next day can not be taken seriously already. Then you must revise your views on the market, perhaps even change the rhythm of the trade. That's why investors and traders are constantly "roam" from one broker to another.
It is for this reason that the answer to the question of by whom trade
should not be treated as immutable and unchanging truth of last resort. Remember: everything in the world is changing and the market - too! Therefore, we must change with it if we want to trade successfully!
Many now wonder: "Where to start, if you wish to trade on the stock market?"