The Russian stock market is currently in a difficult period. However, despite this, there is a trend in which many citizens are thinking about buying securities in order to invest and increase their own capital. According to experts, the purchase of shares protects investments from inflation, and with sufficient volumes of cash injections, some even manage to form a passive source of income. However, for this you need to know a lot of the nuances that the Russian stock market is fraught with.
Features
Each phenomenon in the economy has its own distinctive features. The stock exchange on which securities are traded is no exception.
The situation is such that the Russian stock market provides its participants only with formal ownership of a security. In fact, the owner of the share does not become a co-owner of the enterprise and in no way affects the decisions made regarding business management.
However, this feature has a downside. When purchasing shares of the Russian stock market, it is not necessary to understand the features of various types of business. Each company already has competent managers, and owners of securities can only make a profit without delving into the intricacies of the business activities of each corporation.
So, the realities of the Russian stock market are such that small investors do not actually affect the enterprise, and nothing is known about attempts to acquire a controlling stake in large companies. The reason, most likely, is that investors do not take them.
Current situation
The state of the Russian stock market, as well as the entire economy of the country as a whole, can be called difficult. The stock exchange is undergoing many changes, which ultimately affects the decisions of potential investors. If everything is done correctly and with knowledge of the situation, even in crisis conditions, some investors manage not only to protect their own savings from ever-increasing inflation, but also to increase them.
The prospects for the Russian stock market for the current period are very vague. This is due to the instability of the economy in general and the stock market in particular. Investors have to constantly improve their own knowledge and be able to process huge flows of information.
The situation on the stock exchange in today's realities is such that the presence of an investment portfolio still allows you to protect your own funds from inflation and increase their size. However, do not ignore the existing problems of the Russian stock market.
For example, it is highly dependent on energy prices. With a fall in the global cost of oil, the prices of oil companies are getting cheaper, the ruble is weakening, which will certainly be reflected in the stock market.
Investment opportunities
Even in conditions of economic stability, new opportunities are opening up. They allow investors to get new ways to profit. However, for this it is important to know the basic principles and laws of market functioning well. This is the only way to catch the most important points for a profitable investment.
I must say that despite the development of the Russian stock market, in general, the number of citizens involved in exchange trading is small.
For those planning to start, there are two main options:
- Entrust the management of own funds to a specialized fund.
- Act on your own.
Each of the above strategies has its own characteristics. Let's discuss them in more detail.
Professional management
If your funds are managed by a competent specialist who knows the stock market of Russian companies, you will not have to delve into all the subtleties of investment activity. You simply trust the specialized fund to manage your own funds, which further represents your interests in the stock market, and make a profit. However, the potential investor should pay close attention to the choice of such a fund. Otherwise, instead of the expected profit, you can get losses.
Self management
This option is preferred by investors who know the features of the stock market and are willing to spend a lot of time to analyze information that is constantly updated. In addition, you need to have fairly strong nerves. In the stock market there are constant jumps in the value of securities. You need to have incredible exposure to stay calm and make informed decisions, even if your investment portfolio is rapidly becoming cheaper.
Most inexperienced investors lose their own money precisely because of lack of discipline. Noticing the subsidence of their own portfolio, they seek to quickly sell previously acquired securities. However, in the longer term, they could make a profit.
Expert Advice
- When it comes to stock trading, there is no fuss. Often the external picture is deceiving to potential investors, especially beginners. Large players often take advantage of the lack of experience among amateurs and make money from their mistakes. As soon as an inexperienced investor sees a fall in the value of shares acquired earlier, he seeks to sell them more quickly, setting a low price. Such an advantageous offer is used by large investors, buying up securities on favorable offers.
- It is curious that in the stock market, profit can be made even if the stock price drops. Even if the investor does not have securities, he can borrow them from a broker, then sell them on the market and thus make a profit. Then you need to wait for the price to drop and at this point it will be possible to purchase shares at a low price, and then return it to the broker. The difference between the value of the first and second transactions on the stock exchange forms the investor's profit. Experts claim that such actions are quite simple.
- No need to trust the general hype. As a rule, large investors seek to mislead inexperienced stock market participants. To this end, they even disseminate false information in public sources. If you learn to distinguish between truth and falsehood, you can get impressive profits through investing.
Transaction execution
If you want to try your hand as an investor, it is not necessary to possess large amounts. You can start with small and affordable amounts for almost every Russian citizen. At first, it is important to receive not profit, but experience. Even with little money, you can become a member of the stock market and gradually grasp its basics.
Contrary to a common misconception, it is easy to start trading in the stock market. First of all, you need to find a broker with whom you can open a trading account. To start investing, it is advisable to deposit at least thirty thousand rubles into your own account.
Also, to carry out all kinds of transactions with securities, a specialized program called the trading terminal will be required. Further, on weekdays during the operation of the stock exchange, you can make transactions with securities.
As you understand, the technical side of interaction with the Russian stock market is quite simple. However, for the successful implementation of investment activities, you need to know the nuances and subtleties of the functioning of the stock market, which, as a rule, are known in practice.
Potential income
For investors who are interested in the Russian stock market, the issue of the level of income that they can receive is relevant. On average, securities bring owners a profit of up to forty percent per annum.
However, this figure may be different if you do not make a profit, but put it into circulation, acquiring more and more securities. Traces income growth in the long run especially well.
What are they buying?
The most popular on the Russian market shares of the most famous corporations in the country with big names such as Sberbank, VTB, Gazprom, Aeroflot and others. The main advantage that guarantees the ownership of shares in these companies is not potential profit, but reliability and liquidity. These corporations have significant authority, their shares are always in demand, so they are easy to sell if necessary.
In fact, transactions with similar shares are carried out instantly. Except in cases where the investor is interested in acquiring a large block of shares.
The concept of capitalization
By this term in the stock market is meant the total market value of joint-stock companies whose shares are listed on the stock exchange.
It is worth noting that market capitalization depends not only on the current situation, but also on other indicators.
- The current phase of the business cycle.
- Exchange rate.
- Change in gross domestic product.
- The level of fiscal load, etc.
Capitalization of the Russian stock market
The current situation in politics and economy will certainly be reflected on the stock exchange. The value of securities of large Russian companies has changed dramatically. And not for the better. Shares began to be sold much cheaper both in the domestic and foreign markets. The capitalization of individual companies decreased by fifty percent. However, even experts could not predict such a turn of events, allowing entrepreneurs to secure themselves in advance. Such a situation was a complete surprise and a powerful blow to business for them.
The total capitalization of the Russian stock market is absolutely dependent on the political situation. Due to tensions with some countries, sudden and unpredictable sharp fluctuations arise, which significantly complicates the work of investors. If the situation continues to develop in this way, this can lead even more to the deterioration of the situation in the stock market.
At the moment, the capitalization of the Russian stock market depends on state support. The strong blow caused by the policy on the economy can be mitigated by the introduction of appropriate measures that can at least partially reduce the losses associated with the depreciation of stocks.
However, it must be understood that government measures aimed at supporting the stock market will entail the expenditure of budget funds. In fact, this will mean that financial losses to entrepreneurs will be compensated by increasing the burden on ordinary Russian citizens, who already bear the heavy burden of mandatory expenses.
Due to the instability that is observed on the Russian stock market, experts recommend avoiding investing in risky investment assets, and also, no matter how unpatriotic this sounds, do not keep your own savings in rubles. The recent collapse of the national currency eloquently demonstrated what consequences this could lead to.