How to trade on the stock exchange for beginners. How to start trading on the stock exchange: Step-by-step plan. Choosing a broker for trading on the stock exchange

Greetings, dear subscribers and guests of my blog! Today the word “promotion” (not to be confused with discounts in a hypermarket!) is familiar to almost every high school student. Hundreds of thousands of Russians trade them, traders and investors exchange experiences and give advice.

Here in Russia, a quarter of a century ago, everything was just beginning, and now many participants in those events receive a good increase in their pension in the form of dividends. Do you want to ensure a decent and active old age? Then it's time to figure out how to trade stocks on the stock exchange.

When Russian citizens received their first securities during voucher privatization, only a few knew how to choose the right shares, where they were traded, where to sell them later or, conversely, buy more, and how to learn to determine the right moment for buying and selling.

Since then, much has been simplified: securities have become uncertificated, they are traded via the Internet, and many training courses for beginners have appeared. Of course, courses are good, but the knowledge and experience of practitioners is no less useful.

Today I will try to dispel the fears of those of you who are almost ready to trade stocks, but are not quite sure that they will succeed. First, let's refresh our memory.

What are shares

A share, as is known, assigns to the owner a number of rights, which include the rights to part of the property (in case of liquidation) of the joint-stock company, as well as part of its profit in the form of dividends, to participate in shareholder meetings, and also (if there is a large block of shares ) to participate in the management of the company.

To become a shareholder, first of all, you need to purchase shares, which is documented in the form of an entry in the register of shareholders. There are several ways to solve this issue. The easiest and most convenient way is to become a client of a brokerage company.

An individual does not have direct access to exchange trading and the intermediation of companies licensed for this activity is the only opportunity to trade securities at market quotes.

Why do you need a broker?

Are transactions possible without a broker? Yes, they are possible. For example, two individuals may enter into a share purchase and sale agreement. It must contain the following information:

  1. Type of shares (simple or registered).
  2. Issuer, i.e. name of the joint stock company.
  3. Nominal price of 1 Central Bank, i.e. price at the time of issue.
  4. Number of papers in pieces.
  5. Current price of 1 share.
  6. The full amount of the transaction.

The right to own shares passes from one owner to another only after appropriate changes in the register of shareholders. To do this, an entry is made in the register about the transfer of ownership from the seller to the buyer.

A necessary condition is a transfer order from the seller to the registrar. In addition, additional annexes are drawn up containing the procedure for resolving possible disagreements. The buyer opens a personal account in the register where the shares will be accounted for, for which a special questionnaire is filled out.

Agree, this method is labor-intensive and can be used when the shares are not in circulation on the open market, or if the transaction is made at prices that differ greatly from market prices. In addition, trading without a broker is complicated by problems finding sellers and buyers.

It is also possible to purchase shares directly from the issuer (in case of an additional issue, after a buyback and in some other cases). But beginners do not need to delve into such subtleties, since such transactions are usually carried out in order to restructure blocks of securities between large shareholders.

So, if you decide to trade shares through a broker (the issue of choosing a broker is a separate topic), you must enter into an agreement with him for the provision of brokerage services.

The agreement specifies the rights and obligations of the parties when the broker executes client orders, as well as the procedure for processing transactions by the clearing house. After this, all that remains to be done is to download the program - a trading terminal and start trading.

But the question of stock selection remains: which ones to start with? Russian brokerage companies like, or, allow you to trade not only Russian stocks, but also American ones.

How to choose stocks

For example, the Finam company allows you to gain access to trading on the Moscow Exchange (until December 2011 MICEX) and on the New York Stock Exchange NYSE (colloquially “Nice”).

All transactions can be made from a single trading account. To make the right choice, it is useful to compare the returns of Russian and American stocks. Here's what's happening in the American information sector in 2017:

For comparison, TOP-3 among Russian ordinary shares included in the MICEX index.

However, there is a so-called second-tier shares, more risky, but potentially much more profitable:

What may be difficult for beginners is that these shares are less liquid, i.e. if necessary, they are more difficult to sell. The ratio of securities traded on the open market in Russia is shown in the diagram:

So still: which ones are better to trade? To do this, you need to analyze a number of factors:

  • State of the industry to which the company belongs
  • Growth potential of the stock (actual profitability, whether it is overvalued or undervalued)
  • Dividend history of the company

For example, shares of Mechel JSC by the summer of 2014 fell more than 90 times relative to the January 2011 high. The company was in a severe crisis. But the competent work of management made it possible to save production and now the securities are trading 15 times higher than their minimum with great potential for further growth.

Need to keep in mind

People often ask how to trade stocks on Forex. Forex dealers themselves sometimes impose this service on beginners. But this is a lie. The instrument traded in such companies is called CFD (Contract For Difference).

This means that the trader does not buy shares, but makes money on the difference in quotes for a certain period. This is also possible, but with real stock trading, you become a shareholder with all the ensuing rights, and if something happens, the money will not be lost along with a shell company, of which there are many among Forex dealers.

Books are constantly being published on the topic of stocks, both classics and new ones. A good reference for beginners is:

And if you want to take an express course in technical market analysis, get acquainted with the popular QUIK trading terminal and prepare for real trading, watch this free video webinar from the guru of the Russian market - Dmitry Mikhnov. It will be interesting!

Afterword

In this article, my goal was not to teach you how to trade stocks. I just wanted to show that there is nothing complicated about it.

Subscribe to the blog news, here you will find useful materials about the practice of stock trading and investing with analysis of specific situations.

After trading on the stock exchange for some time, and not getting any results, the trader begins to rethink his trading, and goes deeper and deeper into the question: how to trade on the stock exchange correctly. In this article, we have collected methods and tips that, if followed, can help you trade more effectively on the stock exchange.

You will learn when it is better to enter and exit a trade. We'll show you how to properly manage your position to best protect yourself from excessive risk and maximize your trading profitability. All methods are universal and applicable to any exchange and any financial instruments. Study the information in this article and you can significantly improve your trading!

To follow the right approach in stock speculation, you need to be clear about your capabilities and be moderate in your expectations. Now we will tell you what we mean.

Decide how much time you are willing to devote to trading. Will you be able to follow the market throughout the day? Depending on the answer to these questions, choose the time frame on which you will trade. When making transactions, concentration on the process is necessary. Be aware of this.

If you work, we recommend trading in your free time from work and business, so that no one and nothing can distract you. Any interference can lead to unnecessary turmoil and nerves. Trading should be carried out in complete comfort. Trading already has enough irritants :)

Amount to trade

We are deeply convinced that for trading it is better to have a deposit that is at least minimally significant for you, but not too large. Traders call such amounts “comfortable” for trading. The potential loss of your deposit shouldn't have a huge impact on your finances. If you have too much money, you will be very nervous when making transactions. And in this case, trade will be very tense and tight.

Now it's time to talk about how to trade correctly to minimize losses and make profits. We will talk about trading methods and techniques.

Preparing for trading. Transaction planning

Before trading, review the market for trading instruments that have potential for movement. Take the entire list you are trading and go through it. It will help you calculate the possible price movement. Look for , which may foreshadow a continuation or reversal of the trend.

Oscillator divergences can also help you identify turning points in price movements. The RSI and MACD histogram indicators are quite suitable for searching for divergences. We described trading methods using them in the article: “” and in the article ““. Study them, all the tricks and methods of trading are described in detail there.

Learn to trade. Go ahead.

Graphic constructions will not be superfluous. Identify significant ones to take them into account.

Be sure to check the economic calendar to know what market statistics will be released for the day. It is located at.

Pay attention only to really important news, they are classified in the calendar by three bullish heads. You will not need the statistics themselves, as such. You only need to know time of their release. Because with a 99.9% probability, during the release of statistics, activity in the market will increase, and you will be ready for it. Make notes or set a reminder for the release time of important news in order to adjust your positions and orders if they are in the market at that moment.

Before the news comes out

  • Completely close the deal.
  • Close part of the transaction and leave a stop order for the remaining volume.
  • Leave a trade with a stop order for reasonable level*.

* By reasonable level we mean the nearest local maximum or minimum. We talked about this in detail in the article ““. We recommend that you read it if you have not already done so.

An example of a position before a news release, when the price is close to the sell point

These measures are aimed at optimally minimizing the risk, because Risk is the only thing in trading that a trader can control.

Before important news comes out never remove or move stop orders away from the initial set level, as traders with little trading experience like to do. This can significantly worsen your trading position.

Let's look at an example of how price can behave after release news, and what we recommend doing in this situation. Let's assume that a trade is open, and important statistics will be released any minute.

After the news came out

There are four options for price movement after the release of statistics:

1. The price sharply rushes towards the open transaction, instantly bringing the position into profit:

In the case of this price behavior scenario, it is necessary to immediately reduce risks. This is done by moving the stop loss to at least the breakeven point.

2. The price moves sharply against the open position:

The clearest example of the benefits of stop losses. If a trader does not limit losses on transactions in any way, then his days in the market are numbered. It's only a matter of time. Always place your feet. The stop should not be in the head, as many people like to do, but in the terminal. We don't think you'll want to check these deplorable statistics on your money again.

3. The price sharply rushes towards the open transaction, but then just as sharply turns back and goes against:

Typically, this scenario occurs when several news items are released at the same time. Accordingly, the market reacts differently.

4. The price has changed slightly and remains +/- in the same place:

This situation occurs, but much less often than an active reaction to the news.

What to do if you have no open trades before the news

If important market statistics are expected and you plan to play them back, we recommend being very careful. And what you definitely shouldn’t do is submit pending orders. They can play a cruel joke on you. Let's show with an example:

A classic case when a spike knocked out an order, a position was opened, and the price sharply went back. Most often, as in this example, it is the outer candle that performs such tricks. Read to know the strategies, how to trade them and to be prepared.

A beginner will receive a big loss on such a deal, because... will probably not be able to place a stop loss, and will watch how the minus rapidly grows on the trading account. Therefore, we recommend not using deferred applications before the release of statistical data. But what to do if you really want to trade news?

To do this, you will have to switch to the minute timeframe. This is due to the fact that there will almost certainly be an opportunity where to attach a reasonable stop loss. And this is the most important thing, because... trading must be done with risk:

  1. Let's switch to the minute timeframe.
  2. We are waiting for the first minute candle to close (the market’s emotional reaction to the news will pass).
  3. We open a trade and at the same time, instantly, set a stop loss for the nearest minimum/maximum, depending on the side of the trade opening.

All! This is the simplest and most correct way to trade on news using trading techniques.

Now there is an important note to make when trading before news, after news and the news itself.

If you are hit by a stop loss, then close the terminal and do not trade anymore. Most likely, the market will then be too complex and confusing to trade, and you may end up on tilt (overtrading) and incur significant losses.

Trading techniques and position management

An important link in trading, in addition to transaction planning, which was discussed above, is execution technique and position control. Let's look at an example of how the technique is implemented when opening a transaction, and further maintenance of the position.

A double bottom reversal pattern is formed on the price chart. For now this is an assumption, because... There is no resistance breakdown yet:

As soon as you discover a potential formation, you should immediately place pending orders to break through its support or resistance. In this example, to work out the pattern, a resistance breakdown is needed, so we place a pending buy order.

If the figure is processed, the deal will be opened. If not, then out of the market. Let's look at the developments:

The price breaks the resistance level of the figure and activates a buy order. It is advisable to immediately set a stop loss at a reasonable level, which will be at the nearest local minimum. You can also postpone the goal and wait for its fulfillment. You can read how to define goals in the article ““.

But we must not forget that figures are not a panacea, and there are times when they do not work. You should consider the figure not as a signal that must be fulfilled 100%, but as a consolidation, after which, Maybe, there will be an impulsive movement. Therefore, if the figure does not work, there is a stop loss for this, which will prevent you from losing more than planned.

After entering a trade and setting a stop loss, the trader’s primary task becomes: reducing risk and bringing the trade to breakeven. And only then - profit goals. Because if the price movement scenario is predicted correctly, profit will not be long in coming and will be a consequence of proper planning.

Position control algorithm:

  1. Entering a trade and setting a stop loss at a reasonable level.
  2. Moving the stop loss if the price moves towards opening a position.
  3. Moving the stop loss to the break-even point of the position (to the opening price of the transaction).
  4. Fixation of profit according to the target of the figure or in parts as the price moves.

Let's focus on the fourth point. Now we will explain why and how to do this. When you take profits as the price moves, you reduce transaction risks and free up volume for opening positions on other instruments. You can close it in parts, for example, at the breakdown of previous highs or lows, depending on whether the market is falling or growing.

It looks like this:

Please note that this is a very effective position management method that will help you trade the stock market as accurately as possible. Be sure to take it into your arsenal!

We could give many different examples, but the article is already too long :) If you want to learn more, then sign up for training. We will teach you many working methods and tricks.

If you have any questions about the material, welcome to the comments! We will be happy to answer you.

Good luck in trading!

Leading broker in the FOREX market -

Trading on the stock exchange is turning from being the preserve of a select few into a way of investing and earning money for everyone. The development of technology makes it possible for anyone from any corner of the world to engage in trading without leaving home. But any beginner immediately has a lot of questions - how to trade on the stock exchange from scratch, how to understand the terms of the stock exchange? Let's try to give some tips for novice traders.

First steps

A person who decides to trade on the stock exchange is like a traveler in front of a guide stone. Moreover, the stone is covered with completely incomprehensible writing. Therefore, the first step should be to master knowledge about the stock exchange. First, you should understand the theory of trading and master the terminology of stock traders.

There are many books that are written by professional traders for beginners. For example, A. Elder “How to play and win on the stock exchange”, E. Nayman “Small Encyclopedia of a Trader”, E. Lefevre “Memoirs of a stock speculator”, D. Schwager “Stock magicians”, M. Kovel “Turtle traders”, B Steenbarger “Trader's Self-Instruction Manual. Psychology, technique, tactics and strategy,” L. Connors and L. Raschki, “Secrets of stock trading.”

Another resource, completely free, is specialized Internet resources for traders. There you can read articles about trading, go through the basics of training as a trader, chat with colleagues and learn their stories of successes and failures.

If the first educational program did not discourage you from trading on the stock exchange, then you can start investing money in your education. The most effective way remains distance trading courses on the stock exchange. There are a lot of such courses, and the main thing here is not to make a mistake in choosing. After all, making money on knowledge attracts many, including non-professionals who do not have practical trading skills. Therefore, you should first find out who is teaching and whether you should trust him. Professional traders, such as A. Purnov, A. Gerchik, D. Krasnov, have many years of experience in trading on stock exchanges in different countries and with different instruments. They can teach trading and warn against mistakes that stock trading neophytes can make. Therefore, you can only trust experienced traders who have real results.

Having mastered the theory and completed the preparatory courses, the beginner already has his own understanding of trading and is ready for the next step.

What should you do next?

Now a novice trader must answer several questions for himself that should help him decide on trading and choosing an exchange.

  1. « Where will I trade?“- the very first question is the choice of the exchange where the trader plans to work. Now you can trade not only on domestic exchanges, but also in any country in the world. Most often, the choice falls on Russian, American and European exchanges. Some people prefer exotics in the form of Australian, Asian or African exchanges, but this is very rare. You should choose an exchange based on the trader’s training - knowledge of languages, access to information, knowledge of the realities of the country in which you plan to work.
  2. « What will I trade?“You can trade anything on exchanges - from grain and cotton to complex derivatives. Bloomberg already broadcast data on 2.5 million products several years ago. Therefore, the choice of product is extremely important in order not to drown in this ocean. It is better to master the skill of trading on one product than to scatter your energy and attention on 10-20 objects.
  3. « Who will I work with?“- it is difficult to trade on the market independently on the stock exchange, and simply impossible for a beginner. To solve this problem, they use the services of brokers - intermediaries between the trader and the exchange. The broker fulfills the trader's orders on the exchange and represents the interests of the trader on the exchange. The choice of a broker is extremely important - the success of trading will depend on his professionalism and support. The issue of commissions is also important - brokers have several tariff options and they should be studied very carefully. The broker also resolves the issue of information support for trading.
  4. « What do I want to get from trading?“It seems like a simple question - everyone goes to the stock exchange for money. But in fact, the correct answer to this question will indicate the path of the trader - whether he wants to invest his funds effectively - this will be the path of the investor. Whether he wants to increase his capital quickly and with risk - this will be the way of the trader. The answer will also tell you what type of trading to choose - short-term, medium-term or long-term.

These are some of the few important questions for a trader. In the process of work, many more questions will arise, but it is the answer to these that will indicate the path that the trader will take.

What should you avoid?

The path of a stock trader is quite difficult and every mistake on it threatens financial losses. It is impossible to do without losses and mistakes. But you can protect yourself from some of them.

Here are a few steps that beginners don't need to do:

  1. Hurry up with real trading. There is no need to rush and invest your money in trading right away. If a broker provides a demo account, you need to work with it not for a day or two, but for a month or even more. No need to hurry.
  2. Enter Forex. The Internet is full of advertisements from Forex brokers and Forex traders that promise mountains of gold. Meanwhile, Forex is one of the most difficult markets and it will be very difficult for a beginner there. It's better to start with stocks and bonds. And leave Forex until better times.
  3. Start with positional trading. For beginners, it is better to start with short-term trading - scalping or day trading. This is not easy, but here you can limit yourself to technical analysis.
  4. Stop studying. You should never stop learning. You always need to learn. There are manuals and courses not only for beginners, but also for experienced traders.
  5. Give in to the excitement. Experienced traders advise creating trading and behavior rules for yourself. This is especially important when a trader begins to lose and is overcome by excitement - he needs to win back. No need. There must be a limit on drainage. Two or three trades were closed in the negative - that’s it, trading is over for today. And in general, there should be a limit on transactions, even successful ones. Trading is a nervous job and the likelihood of making a mistake after 10-15 trades is very high.
  6. Trust robots. You should only contact a trading robot when you have a good understanding of trading and the market. Until this moment, you should not believe in such programs.

A trader will still make a lot of mistakes. And you can’t do without financial losses. But all this can be solved, you need to be prepared for this, and analyze all mistakes and defeats and turn them into victories.

The path of a trader is not easy, but very exciting. Any beginner will soon become a master and will be able to give advice on how to trade on the stock exchange from scratch.

It can be very difficult for a person who is far from trading on the stock exchange to take the first steps. Many questions arise, the answers to them have to be collected bit by bit on the Internet, unless you immediately find a good guide to the world of finance. An already established trader can shorten this path tenfold. But how to find it? Who can really teach you how to trade on the stock exchange constantly in profit in order to regularly increase your deposit? Some points will be clarified in this article.

Where should a newbie in trading start?

We are bombarded with Forex advertisements from literally everywhere - you can find them much more often than offers from brokers for trading futures and shares on the stock exchange. Why is this happening. The fact is that trading currency pairs on the international Forex currency market is available to literally all people. It can be started with a minimum amount of money. And in order to learn, you don’t need money at all - many brokers offer opening a demo account for an indefinite period. In the same way, you download the platform for trading and the quotes in it are the same as on a real account and all the functions are exactly the same, it’s just a virtual account, there is no real money on it. Therefore, if a person does not know how to trade on the stock exchange, he can try his hand without fear of losing his savings.

How long does it take to study on a demo account and when to switch to a real one?

Experienced traders have slightly different opinions on this matter. But everyone advises not to stay too long on a demo account, since trading on it is still different from trading in real life. Not the functions of the platform and not the quotes, there is a much greater difference between a real and a demo account - the psychological component. As a rule, learning the rules of trading on the stock exchange and learning how to use two or three popular indicators is not difficult. Many novice traders almost immediately begin to show good results on a demo account, but in real life they begin to lose money. Don't blame the broker for this. The main obstacle to stable earnings is the psychological aspect. By all accounts, work on psychology is never finished.

Opening a demo account does not oblige us to anything. Therefore, you shouldn’t think too much about choosing a broker at this stage. But later this choice becomes very important. On the Internet you can find a lot of advice for novice traders, a huge number of reviews that list the main points of trading conditions with different brokerage companies. They differ, for example, in the size of the initial deposit. The most democratic offer to open a cent account for 10 dollars. The money is very real, trading is carried out in cents or even fractions of cents. Of course, there is no need to talk about significant profits here, but a cent account can become a bridge when switching from a demo account to real trading.

Best markets to trade

When the first trading experience has already been gained and the price charts do not seem like gobbledygook with incomprehensible spikes up and down, you can think about better assets and a more careful choice of broker and exchange. Serious investors looking for the best ways to invest and increase their capital have a choice of three options: trading on the Russian, European and American markets. There are also more exotic options: India, Asia, Australia. In practice, few people seriously consider these markets. The reason lies in volatility, because the more volatile the market, the more profitable it is to work on it. In this sense, the European and American markets are considered the best. Although trading shares and futures on the Moscow Exchange is also very popular among domestic traders. There are many special educational materials on how to start trading on the MICEX exchange.

What is the best way to trade?

The choice is between stocks, commodity futures, options or currency pairs on the Forex market. Bloomberg broadcasts quotes for a huge number of financial products. We are talking about millions of shares. You can’t help but get confused when you think about where to start trading on the stock exchange. Is it realistic to trade all the offered assets? Of course not. Just to view them will take more than one month. Forex is simpler in this sense; it does not confront the trader with such a huge choice. Most brokers support the ability to trade several dozen major currency pairs. Of these, up to ten assets are the most popular: EURUSD, GBPUSD, USDCHF, USDJPY, USDCAD, AUDUSD and their crosses. As a rule, a person working in the Forex market manages to look at the main pairs before starting trading and select the most promising ones for the current day or week. Trading shares on the stock market requires a different approach.

Selecting an asset in the stock market

Even after the previous tips for novice traders on market segmentation, the list turns out to be quite an impressive one. And again, it is not clear how to choose from it what is best to trade. There is no clear answer to this question. Many traders successfully trade currency pairs on Forex. There are also those who believe that trading on Forex cannot be compared with futures and stocks, where the volatility is much higher and you can earn much more. We must not forget that high volatility is also a double-edged sword; it allows you to make good money, but you can also quickly lose everything. Much here will depend on the individual qualities of the trader: character, skills, personal preferences. If you have already chosen a trading option that suits you, all that remains is to work on improving your skills in this particular market segment. Believe me, the market always provides a large field for activity, and you can improve your trading results indefinitely. For beginners, a few tips on how to become a trader will be useful - they are collected in the next section.

Some of the following secrets of stock trading may seem elementary, while others may seem dubious, but all of them are sealed by the destinies and losses of millions of traders. Before becoming successful, everyone went their own way, usually through deposit loss and personal dramas:

  1. Do not use all your savings for trading. Invest in a new business only such an amount that you can lose without drama or significant damage to the family.
  2. Learn to take losses calmly; they should not disturb your sleep, just like successful days in the market.
  3. Don't think about profit while trading.
  4. Don't change your mind during the bidding process. Analyze the situation, make a decision that clearly outlines the moments of closing a position, both positive and negative, and do not retreat under the pressure of the market.
  5. Learn to make your own decisions and not be fooled by the judgments of others. Trading is an almost intimate matter, you need to learn, but in the learning process you must develop your own trading style and your own strategy.

Sometimes it is useful for a participant in exchange trading to simply take a break from trading. Do not despair if nothing works out and all trades are unprofitable. It seems that the car has already received the information, but there is no point. If you find yourself in this, take a break. Forget about profits, don’t expect anything from the market. After a while, you will return calm and balanced and everything will go like clockwork. This advice will be especially useful for those who absolutely cannot tolerate drawdown. As soon as the price goes in the wrong direction, your nerves begin to give in, the deal is immediately closed, and literally after a short time the price goes where you expected. A break for a couple of weeks will be of invaluable help in such a situation.

When will the first success come?

At first, trading will never become your main activity, even if you enjoy the process. There are different opinions regarding the timing of development, but all experienced and successful traders talk about years. Therefore, if you have just come to the exchange, you should not think that trading is not available to you if nothing is working out yet. Time must pass, without personal experience, the general opinion is that no matter how much you study, you will not become a trader. There are too many nuances in trading that cannot be perceived in a short time. Is it possible to become an engineer in six months? Trading is a profession that is equally complex and takes time. Of course, by being trained by a trader who has been trading successfully for a long time, your own process of development can be significantly accelerated. But it will take at least several months to feel confident on the stock exchange.

Minimum tools and indicators to get started

Try not to spread yourself across many assets at first, and use a minimum of indicators when trading. It's better to learn to use one or two of them, but study them thoroughly. This will be of more use than jumping between different strategies and different tools. The famous trader Alexander Elder, and not only him, advises using one indicator from different groups: one oscillator (for example, Stochastic or MACD), one trend indicator - Bollinger bands or moving averages, and one volume indicator. This is the minimum set that is always present on any platform of any broker. The general consensus is that even with this set of standard indicators, you can build many profitable strategies on different time frames and for different instruments. There is a lot of information on how to trade on the stock exchange using these indicators - if you thoroughly study the work of the main ones, success in trading will not be long in coming.

If you trade currency pairs, take one or two pairs to start with, no more. When the result is consistently positive, you can begin to gradually increase the number of tools. For those who trade stocks or commodity futures, the advice is also relevant: choose assets from the same commodity group that can correlate with each other. Let's give an example of how to trade stocks on the stock exchange using the correlation between assets. If in the group of legumes there is a clear increase in prices for all instruments except soybeans, it makes sense to prepare for sales on this product - it is obvious that at the slightest hint of a downward movement in the group, soybeans will be the first to rush down.

The following few tips can become the basis of a successful strategy, as they themselves provide valuable hints for opening positions. There are some patterns in price behavior depending on the opening of the current day or the close of the previous one. For example, if the price opened up, then with a greater degree of probability it will continue to go up. It is also recommended to open long positions if the price has consolidated above yesterday’s close and vice versa. This rule, in fact, applies to any time frames - if you scalp on minutes, you can also adapt it to your trading.

Choosing a trading style and timeframe

Now about timeframes, or how to trade on the stock exchange and Forex better - intraday, medium-term or long-term. The main task of a trader is to make a profit; what it will be is another question. There is no need to set yourself obviously impossible goals in the hope of receiving excess profits. Many beginners are interested in the question of how much interest can be “raised” in a week, month, or year. You shouldn't focus on this. At the first stage, it will be a great achievement if you learn not to lose your money. As for percentages, there are no clear statistics here. It all depends on the person, the strategy, the asset being traded and many other things. It is known that trading on small time frames can bring large profits in percentage terms, but it is exhausting, both physically and psychologically. Sitting all day under extreme stress - how long will it last? This approach can be beneficial for a short period of time, in order, as traders say, to “accelerate” the deposit to an amount with which it will be comfortable to trade in the future.

Over the long term, scalping or short-term trading can lead to exhaustion of the nervous system. Although there are people well-known in RuNet trading circles who do not change this style of trading and receive visible pleasure and good income from it. If you have just come to trading and do not know the difference between a trader and a broker (a trader is a person who trades on the stock exchange, and a broker is a company that provides intermediary services for traders), do not try to conclude more transactions. Let it be one transaction a day, but a high-quality one. Imagine that you are a hunter tracking down your prey for a long time. Watch, watch, wait, and finally, at the right moment, “shoot” a profitable trade. This style of trading will bring satisfaction at first, and over time you will understand what you like best.

With a larger deposit, more opportunities

Finally, we will talk about how to become a trader and work without the participation of brokerage companies. Some beginners are immediately interested in such advanced questions. How to trade on the stock exchange without a broker if you are a trader with very modest funds. You need to immediately decide that such an opportunity exists only for those who own fairly large capital. After all, the broker not only gets rich from our losses, but also brings a lot of opportunities to traders: it provides quotes and leverage, thanks to which a trader with a minimum deposit can participate in trading. The broker gives you the opportunity to use its platform, already tailored to the basic requirements.

Many accuse brokerage companies of manipulating quotes - after all, they have all the orders of small traders in the palm of their hands. All this has a basis. Therefore, large investors are looking for an opportunity to enter the international market without the mediation of a broker. However, the starting capital for trading without an intermediary must be at least $10,000,000. It is clear that the vast majority of traders without the participation of a brokerage company would not have the opportunity to take part in trading.

However, you must understand that No Dealing Desk, as trading without a broker is called, does not guarantee that your orders will not be read. In fact, real trading without a broker is only available to very large investors who can spend a lot of money on the appropriate software and hardware and have millions of dollars to enter the market directly. Everything else - renting a separate trading server from a broker or any other options - does not provide any special privileges or advantages.

What amount should you start trading on the stock exchange with? Is $500 enough or do you need at least $5000? Where is it better to trade – on MOEX or NASDAQ, NYSE, Euronext? These and other questions resulted in a non-boring guide containing a complete set of instructions and explanations on how to start trading on the stock exchange.

The content of the article:

The very concept of " stock exchange“very general for a specific action, since there are exchanges for working with different types of assets: currency, stock, commodity, derivatives market, etc., each type has its own specifics, so it’s a good idea to first decide what is closer to you and what assets you prefer to work with, for example, trade commodity futures for certain varieties of coconuts or buy mutual fund securities.

This article will talk about how to start trading on the stock exchange and how to buy/sell shares. When asked which exchange to trade on , Usually there are 3 possible answers: RF, EU, USA, and everyone else seems Indian or Australian exchanges immediately cut off.

I believe that this is not entirely correct, since there are no less interesting companies on the Tokyo, Australian and other exchanges, especially since it is even useful for portfolio diversification.

You will learn a little more about how to enter international exchanges below, but for now let’s determine what you need to start trading and how to prepare.

How to start trading on the stock exchange

On stock exchanges you can buy shares of your favorite companies, but the exchange does not work with individuals and all transactions take place only through brokers - intermediary companies. Brokers provide access to certain exchanges, so before you do, find out if they have access to the exchange you need.

If you want to buy shares SONY, then there is no point in contacting a broker who only provides access to the Moscow Exchange, since you need Tokyo.

Also, the purchase of shares is possible only during the trading hours of the exchange from Monday to Friday from 9 to 17:00 on average. For example, the Tokyo Stock Exchange starts working at 3 a.m. Moscow time. True, this does not mean that you need to set your alarm clock for 4 am, you will simply give an order to the broker to buy shares at a time convenient for you, and as soon as the exchange is available for trading, your order will be executed.

Today, all the world's stock exchanges have switched to online trading and settlements, so there is no need to travel and stand in queues; you can open an account with a broker without getting out of bed in a few minutes.

Let's return to the fact that to start trading on the stock exchange, you need to find a broker.

As you already understood, it is better when your broker provides many exchanges in its assets, and not just one. Although many people at the initial stage want to choose one exchange for trading.

But such thoughts are also understandable, because it is easier to stop at one exchange and not know anything else, especially when it comes to choosing a broker.

The fact is that according to the laws of the Russian Federation, only qualified investors with a minimum amount in the account in 6 million rubles.

But this is also why many Russian brokers have subsidiaries registered in the EU.

Based on many factors above, I am not asking which exchange is better to trade on, but rather focusing on which stocks to buy.

How much should I start trading on the stock exchange?

Some say as much as possible, others as little as possible, others name specific numbers, but there are no rules here. You can buy shares Amazon for $1000 or shares Sberbank at $2.5.

If you want to start trading on the stock exchange on the Internet, then don’t look at the amounts, start with what you have.

Each broker has a set minimum deposit size, for example, the minimum first deposit with a professional broker is $250 . For this amount it is already possible, Microsoft or Coca-Cola And Sberbank.

However, you still can’t buy much with $200, so try to replenish your deposit monthly and buy additional shares of different companies, increasing your portfolio not only quantitatively, but also qualitatively. This will be better and more productive than constantly waiting for better conditions, because time and experience are of great importance.

What stocks to buy and how to develop

As in any other business, in trading on the stock exchange, before moving on to serious work on results, you need to understand the market, because you cannot imagine such a situation that, for example, a person who has never studied medicine suddenly begins to engage in neurosurgery, hoping to this for success. What it will look like and what consequences it will lead to is quite obvious.

The truth is that stock trading cannot be learned. More than 90% of millionaires and billionaires have no education.

You can learn what a stock exchange and stocks are, where to click the Buy button in the trading program, but what stocks you should buy and for how long and why - this is not taught. Yes, you can conduct fundamental analysis of a company, technical analysis, but there are thousands of companies and how to choose the right one from them?

For example, Peter Lynch I wrote about how the shares of an American funeral home soared a hundred times, or a plastic processing company. But I am sure that more than 95% of investors do not think about such companies.

Poll: What attracts you to stock exchanges?

Poll Options are limited because JavaScript is disabled in your browser.

    Prospect of being wealthy 46%, 89 votes

    Opportunity to save money profitably 27%, 53 vote

    Desire to create a securities portfolio 14%, 27 votes

    Purchase of foreign shares 5%, 10 votes

    Purchase of Russian shares 4%, 7 votes

Information sources

You need to acquire sources of information, these could be financial sites, books, ratings... where you will learn market news, about new business trends, for example, about lithium batteries that Tesla uses.

Among these I would highlight:

Goals determine the nature of the portfolio

The next stage is defining goals. What does it mean? This means that you need to decide for yourself what profitability indicators suit you, how long you expect to invest, and how much time you can spend on analysis and trading. Having answered these questions, you can move on to choosing the type of strategy, which should determine how to start trading on the stock exchange and depend on:

  • your character(are you able to wait a long time or prefer to act quickly);
  • desired investment horizons(for example, buying shares cheaply and then selling them at a high price, waiting for weeks and months, making intraday trades or quickly scalping the minimal profit generated);
  • acceptable level of risk(conservative strategies based on passive or dividend income, medium-risk based on a mixed selection of assets, or high-risk investments in small-cap firms and startups).

How to trade on the stock exchange the chosen strategy will determine: for a conservative investor this is the choice of the most profitable bonds and the purchase of shares with the highest dividends, for scalpers - trading in highly volatile assets, for classical investors who consider Warren Buffett their idol - this is buying undervalued, promising shares, with long-term goals and reinvesting profits.

In addition to fundamental analysis, someone can focus on the technical levels of the moving average (MA) with periods of 200 and 50, which show how overvalued the stock is or vice versa, and other graphical analysis tools.

Your goals will determine your stock portfolio and the areas in which you will focus more than others.

However, I do not see any limitations or obvious strategies in successful investors. All successful stock market players buy everything that is undervalued, cheap and has prospects. And here it is impossible to limit yourself to one industry or market. Each of them has enormous potential.

I usually find something very cheap that makes a positive difference and buy it.

– Jim Rogers - co-founder of George Soros' investment fund Quantum

After the start of trading, after the first purchase of shares, you will immediately understand that the process itself is no more complicated than ordering pizza on the Internet. This way you will begin to repeat your purchases and over time you will collect a decent portfolio of shares that will please not only your eyes, but also your financial component.

Instructions: how to trade on the stock exchange

Let's summarize all of the above into a simple sequence of actions. To start buying and selling shares on the stock exchange, you need to:

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