Why invest and is it suitable for me?
You can really earn more on investments than on bank deposits, but at the same time there is a chance of losing everything. The interest on deposits is known in advance, and even if the bank's license is revoked, the state will return the money to depositors.
There is no such insurance on the stock exchange, you can lose everything. Moreover, falls in the value of securities occur much more often than bank failures.
Therefore, before entering the stock exchange, it is necessary to prepare a financial safety cushion. Part of the savings – at least 3-6 of your monthly income – should be left on a deposit or a savings account in a bank. And only when the reserve for a rainy day is made, and there is still free money left and you are ready to risk it, you can think about investing.
The main thing to remember is that profit is not blind luck, as in a casino, but the result of well—thought-out actions. Not a game, but a job.
I want to try. Where to start?
The modern exchange is electronic, you can trade via the Internet without getting up from the sofa. But first, you should determine a few important things for yourself.
1. Estimate how much money you are willing to invest
Theoretically, you can start with any amount. But such a volume does not compensate for the commissions that will have to be paid for operations, nor the time spent on bidding. It is worth starting to invest. It is better to imagine in advance a situation in which you will lose all this money. If you understand that this is not a disaster for your budget, you can try.
2. Think about how much time you are willing to spend
If you are ready to undergo training, immerse yourself in the topic, constantly monitor the situation on the stock market, you can try to trade yourself. Then you will need a broker who will become your intermediary to access the exchange. You will make your own decisions about buying and selling, and the broker will carry out your orders.
If you do not intend to spend a lot of time and effort on investing, then it is better to consider one of the forms of trust management. Then professionals will invest your funds.
You can conclude an individual contract with a trustee, transfer money to him — and he will decide for you when and which assets to buy and when to sell. His goal is to invest your savings with maximum benefit at the level of risk that you choose.
Another option is to invest in mutual funds (mutual funds). These are ready-made sets of different securities or other assets, for example, shares of Russian mining companies. The management company manages the funds of the mutual fund (buys and sells assets, changes their composition).
You can choose a suitable fund and buy its shares either from the management company itself or through a broker on the stock exchange. If the company invests successfully, the price of shares will rise — and you will make a profit. If it falls, you will suffer losses.
3. Choose a strategy and assets
A strategy is a set of investment parameters that determine your style of behavior on the stock exchange: what instruments you choose, what profitability you expect and what losses you are ready for, how long you plan to invest and how often you are ready to make transactions.
In the simplest version of the strategy, you choose:
For example, assets are government bonds, shares of pharmaceutical, oil and gas companies and banks, as well as shares of a fund that invests in precious metals. The period is 1 year, the amount of losses allowed for you is 20%. That is, if assets fall in price by 20%, then you immediately sell them, even if the year has not passed yet.
When choosing a trust management, you also need to decide on a strategy. Only in this case you will choose from the offers that are already on the market, or discuss an individual strategy with your manager.
4. Find an intermediary company
When you have decided on a strategy, you can start choosing an intermediary. The most important thing is to make sure that the broker, trustee or mutual fund management company has a license from your Bank.
If you have chosen to invest independently, you will have to go through the following path:
If you have chosen the path of trust management, it will be enough to conclude a contract and transfer the money to a trustee or a mutual fund management company.
Common mistakes: how not to do
Set the limit of losses that you are willing to bear: for example, if assets have fallen in price by 20%, you need to sell and, as they say on the stock exchange, fix losses. The desire to wait — suddenly the price will rebound — will be great, but you do not need to give in to it. Otherwise, you can lose even more.
You can really earn more on investments than on bank deposits, but at the same time there is a chance of losing everything. The interest on deposits is known in advance, and even if the bank's license is revoked, the state will return the money to depositors.
There is no such insurance on the stock exchange, you can lose everything. Moreover, falls in the value of securities occur much more often than bank failures.
Therefore, before entering the stock exchange, it is necessary to prepare a financial safety cushion. Part of the savings – at least 3-6 of your monthly income – should be left on a deposit or a savings account in a bank. And only when the reserve for a rainy day is made, and there is still free money left and you are ready to risk it, you can think about investing.
The main thing to remember is that profit is not blind luck, as in a casino, but the result of well—thought-out actions. Not a game, but a job.
The modern exchange is electronic, you can trade via the Internet without getting up from the sofa. But first, you should determine a few important things for yourself.
1. Estimate how much money you are willing to invest
Theoretically, you can start with any amount. But such a volume does not compensate for the commissions that will have to be paid for operations, nor the time spent on bidding. It is worth starting to invest. It is better to imagine in advance a situation in which you will lose all this money. If you understand that this is not a disaster for your budget, you can try.
2. Think about how much time you are willing to spend
If you are ready to undergo training, immerse yourself in the topic, constantly monitor the situation on the stock market, you can try to trade yourself. Then you will need a broker who will become your intermediary to access the exchange. You will make your own decisions about buying and selling, and the broker will carry out your orders.
If you do not intend to spend a lot of time and effort on investing, then it is better to consider one of the forms of trust management. Then professionals will invest your funds.
You can conclude an individual contract with a trustee, transfer money to him — and he will decide for you when and which assets to buy and when to sell. His goal is to invest your savings with maximum benefit at the level of risk that you choose.
Another option is to invest in mutual funds (mutual funds). These are ready-made sets of different securities or other assets, for example, shares of Russian mining companies. The management company manages the funds of the mutual fund (buys and sells assets, changes their composition).
You can choose a suitable fund and buy its shares either from the management company itself or through a broker on the stock exchange. If the company invests successfully, the price of shares will rise — and you will make a profit. If it falls, you will suffer losses.
3. Choose a strategy and assets
A strategy is a set of investment parameters that determine your style of behavior on the stock exchange: what instruments you choose, what profitability you expect and what losses you are ready for, how long you plan to invest and how often you are ready to make transactions.
In the simplest version of the strategy, you choose:
- assets;
- investment period;
- the maximum amount of losses.
For example, assets are government bonds, shares of pharmaceutical, oil and gas companies and banks, as well as shares of a fund that invests in precious metals. The period is 1 year, the amount of losses allowed for you is 20%. That is, if assets fall in price by 20%, then you immediately sell them, even if the year has not passed yet.
When choosing a trust management, you also need to decide on a strategy. Only in this case you will choose from the offers that are already on the market, or discuss an individual strategy with your manager.
4. Find an intermediary company
When you have decided on a strategy, you can start choosing an intermediary. The most important thing is to make sure that the broker, trustee or mutual fund management company has a license from your Bank.
If you have chosen to invest independently, you will have to go through the following path:
- conclude an agreement with a broker;
- open and top up a brokerage account;
- install a special program for trading;
- start buying and selling.
If you have chosen the path of trust management, it will be enough to conclude a contract and transfer the money to a trustee or a mutual fund management company.
Common mistakes: how not to do
- You can't invest everything you have in securities
- Do not act on chance — go through training
- Do not give in to emotions
Set the limit of losses that you are willing to bear: for example, if assets have fallen in price by 20%, you need to sell and, as they say on the stock exchange, fix losses. The desire to wait — suddenly the price will rebound — will be great, but you do not need to give in to it. Otherwise, you can lose even more.
- Don't put all your eggs in one basket
- Don't believe promises to earn 500% a day