Often you hear phrases about the need for additional income, as well as something like "I want to make money." One of the most interesting ways to earn money is trading in the securities market. The stock market allows you to earn extra income without looking up from your main job (or without leaving your home). This is facilitated by the development of technology, the availability of the Internet and a sufficient number of investment and brokerage companies. The most understandable, popular and affordable tools are stocks. Since making money on stocks is not so simple, you need to familiarize yourself with the basic concepts of the securities market. Books, courses and seminars of brokerage companies can help with this.
First of all, determine for yourself - how much you are willing to allocate for investment in stocks. Keep in mind that you can both make money on stocks and lose money completely, so you should start with a small (comfortable for your budget) amount.
The following is a search for a brokerage company, because, according to the laws of Russia, it is possible to make transactions on the exchange only with the help of an intermediary - a brokerage firm. It is not difficult to find a reliable brokerage company - on financial portals there are ratings of the largest investment companies and brokers. Keep in mind that for each transaction, the broker holds a commission, so it is advisable to familiarize yourself with the rates of brokerage services. In addition, reliable and reputable brokerage companies conduct training courses, workshops and seminars where you can learn how to make money on stocks and other investment instruments.
The third step is the choice of an investment strategy, it completely depends on your preferences, availability of free time, willingness to take risks. There are two main strategies: active and passive. An active stock market behavior strategy suggests that the investor is constantly reviewing the portfolio structure. That is, often buys and sells stocks depending on the situation on the exchange. Proponents of the passive strategy are configured for a minimum number of transactions, their task is to find a cheap (undervalued) market share and sell it at a high price in the future. How to make money on stocks? The main principle of trading on the exchange is “Buy cheaper, sell more expensive”. The main difference in the stock market behavior strategy is the time interval between the buy and sell actions.
The fourth step is to determine which stocks will allow you to implement the chosen strategy. If you are an active investor, then pay attention to the “blue chips”, since most transactions are concluded with them, they are most liquid - you can buy or sell them at any time during the operation of the exchange. Second-tier stocks are suitable for passive investors, as they often include undervalued securities. Of course, these recommendations are general in nature, for example, Sberbank shares, being a blue chip, rose in price (from 14 rubles to 110 per share), which allowed long-term investors to make good money. Within this period, significant fluctuations in the quotations of this share were also observed, which allowed active investors to earn even more on Sberbank shares.
Another answer to the question of how to make money on stocks is to receive dividends. A stock is not only an object of speculation on the stock exchange, but also an equity security, which provides the right to receive part of the company's profit. Ordinary shares do not guarantee this right, owners of ordinary shares receive dividends only if the management of the joint-stock company makes such a decision at the end of the financial year. Dividends on preferred shares are guaranteed, but holders of these shares cannot participate in the management of the company.