Dear visitors of the HeatherBober website, hello! I am Alexey Morozov, an expert and one of the authors. The topic of today's material is trading on stock exchange.
There are slightly different laws in comparison with the Forex market, so you need to be careful.
So let's get started!
The financial market can be roughly divided into three segments: commodity market, stock and currency (Forex).
On the commodity and currency markets, goods/raw materials and currency are sold, respectively, but on the stock market - securities. They can be stocks, bonds, checks, bills, futures and forward contracts, as well as options.
Below we will describe in detail the main categories of securities listed on the stock exchange, but for now let's get acquainted with the participants in the auction.
All people related to the stock market can be divided into three groups:
The difference between traders and investors is easy to explain with an example.
Example
If we buy a Gazprom share in order to receive annual dividends from it, we act as investors. If we bought a share at a price of 130 rubles and sold it an hour later for 135 rubles, taking 5 rubles. profits - we behaved like traders.
It is important to know the definition of " blue chips". In the casino, the blue chip is the most expensive, on the stock exchange this expression was called the securities of the largest and most reliable companies.
Blue chip stocks are guaranteed to pay dividends. In addition, they are very liquid, so they allow you to make good money on speculation. By changing the price of blue chips, one can judge the general state of the market.
2. What can be bought on the stock market - an overview of the TOP-4 trading instruments
Let's briefly describe the four main instruments that can be successfully traded on the stock exchange.
Tool 1. Stock
A share is a security, by purchasing which we contribute capital (equal to the value of the share) to the total capital of the company and receive the right to a part of its income. For example, when buying half of all shares, we will take 50% of the company's income for ourselves.
The part of the firm's earnings that the owner of the share takes for himself is called dividend. Generally, dividends are paid annually.
Sometimes the Board of Directors may decide not to share profits with the shareholders: they will be reinvested to receive more more income in future.
Tool 2. Bonds
A bond is an obligation under which one party (the issuer) undertakes to issue a certain amount of money to the bearer of the bond at a specified time.
The issuer of these securities may be individual firms or the state. In the first case, the issued securities will be called corporate, in the second state. The former are taxed, the latter are not.
Bonds are not subject to such sharp fluctuations in price as stocks, so it is advisable to start trading just with them.
Tool 3. Options
The principle of an option is as follows: we make an assumption about how the price of a financial instrument (it can be anything) will change after a certain time, for example, every other day.
Then we buy the option, paying a certain amount for it, say ten dollars. The price paid is called option premium. When a day (or other period) passes, the results are analyzed.
If the assumption turned out to be correct, we get back the invested amount and more profit. If not, we simply remain without the money previously paid for the option.
Tool 4. Futures
Futures is an obligation of one party to provide another specified commodity in a specified quantity at an agreed price in the future.
Example
Let's say Rosneft wants to buy ten barrels of oil from Gazprom in a year. To do this, a futures contract is drawn up: in a year, Gazprom will supply Rosneft with ten barrels at the price that was fixed at the time the parties signed the contract.
As the price of oil fluctuates, futures can be freely traded on the exchange.
On a note
If on Forex you can trade both on the market growth and on the fall, then on the stock exchange you will be able to earn only when the price of a financial instrument rises.
So, we have listed the main objects of trading, we are moving on to three ways to make money on the stock exchange.
3. How you can make money in the stock market - 3 proven ways
There are a lot of management strategies (there is a separate article about this on the site), but there are only three ways to make money. Let's analyze them.
Method 1. Sale of shares and bonds
This line of work is only suitable owners companies operating with securities, or joint-stock companies issuing shares.
Undoubtedly, stock market was originally created just to receive capital through the sale of securities. If you created joint-stock company and issued shares, their placement on the stock exchange will quickly find investors.
In addition to making money, you can use the stock market as a means minimization risks. The conclusion of option or forward contracts makes it possible not to miss profits in the future, to "secure" good financial opportunities.
Method 2. Investing in securities
In the article "" we said that making money on foreign exchange market is possible only through speculation, trading on changes in exchange rates.
The securities market provides an opportunity to turn trading instruments into sources of constant profit and secure a quiet life with a stable income.
If, for example, we buy shares not for speculation, but to receive dividends, then collecting a large portfolio of securities different companies will constantly give us good money.
Many investors recommend combining investment with trading. In particular, you can buy a few shares that are expected to rise, and when the price rises, sell most of the shares and return the money invested.
The rest of the shares we use only as a source passive income. Fluctuations in their exchange rate are of little concern to us, since we have received back the invested funds.
Method 3. Speculation in securities
Speculation on securities is the main and probably the most profitable way to make money on the stock market, attracting more and more people who want to learn trading every day.
Unlike investors, speculators are not interested in dividends and the long-term prospects of a particular security. Their key goal is to buy low and sell high, taking profits.
About how long a trader can keep deals open, we wrote in the article "". Most of the market players are short-term or medium-term, however, they cannot do without supporters of long-term trading.
The methods of analytics in the stock market are similar to those that we described in "". The only difference is that the fundamental factors that affect the dynamics of the country's currency usually do not affect share prices.
4. Stock market trading - 5 main steps
Below we list the sequence of stages that you need to go through to successfully trade in the stock market. If you have read previous articles about Forex, you will surely notice that there is a lot in common.
Stage 1. Choosing a broker
When choosing a broker - an intermediary in trade - we must rely on a number of important points. The most important thing is transparency and ease of withdrawing money, trading conditions, availability of training and analytics.
It is desirable that the training takes place in the format of webinars. This makes it possible to ask questions to the teacher and at times improves the quality of knowledge.
The more analytical materials provided by a broker - the better. If a company analyzes the market with different approaches (both graphical and wave analysis, for example) - that's just fine.
Stage 2. Installing the terminal on the trader's computer
Since we do not plan to go to the exchange, we need to install a special program - trading terminal. Installation is carried out after choosing a broker, since the terminal must be downloaded from the website of the selected company.
Once the terminal is installed, it is very important to set it up correctly. Basically, the settings affect the display of charts and indicators, the list of instruments and other elements.
Stage 3. Opening a demo account
It is always necessary to start trading with training accounts, and not with real ones. Even if you have experience in Forex speculation, you should not invest real money in the securities market on the first day.
A demo account helps beginners feel at ease, try out strategies, test their psychological readiness for trading.
Stage 4. Opening a real account
You can switch to trading for real money only after a constant profit on a demo account. If the training trade was unprofitable, the introduction of real funds will not change the situation.
Experienced traders advise you to first double the initial deposit on a demo, and then start real trading.
Successful speculation for two or three days does not guarantee profitability in the future: the market loves to surprise. If you have doubled your initial capital without trading on increased risks, this is evidence of your sufficient “maturity”.
Stage 5. Buying and selling shares in accordance with the chosen strategy
When the training on the demo account is completed and real funds are deposited, all that remains is to make a profit on the chosen strategy. Risking real money is not at all like the fear of losing the "wrappers" of the training regime, so be prepared for stress.
In a very short time, you will understand how important discipline is in the stock market game. In fact, it is in the discipline of the trader, and not in the smart ability to understand the markets or "luck", that the main secret of success lies.
5. Rating of stock market brokers in Russia - an overview of the TOP-5 companies
There are many companies that offer themselves as an intermediary in the stock market. It is very important to be able to choose a reliable partner who will not deceive and support you with good training and reasonable analytics.
We have prepared a list of the most popular brokerage firms that allow tens of thousands of people to successfully trade securities.
We got acquainted with Alpari in detail while studying Forex. In addition to currency, Alpari gives you the opportunity to trade several futures contracts. Soon there will most likely be more instruments from the stock market.
Probably, there is no better training program than in, anywhere else: a huge number of free webinars are held daily, they can be viewed even by people who are not registered in the company.
The company is considered the best broker in the Russian stock market. Here you can trade stocks, futures, bonds, options and even currencies. After registration, it is most convenient to open an account at the tariff " start».
In the first thirty days from the moment of opening, the broker's commission will be 0.0177% of the invested funds. After this period, the amount of commission will depend on the turnover.
Dependence of commission in BCS on trading volume:
№ Turnover (in rubles) Commission, % 1 Up to 1,000,000 0,0354 2 From 1,000,000 to 5,000,000 0,0295 3 From 5,000,000 to 15,000,000 0,0236 4 Over 15,000,000 0, 0177 Excellent analytics, quality training in the format of webinars and seminars are available. If desired, you can order an individual training program.
3) Opening-Broker
The broker in question has three main tariffs: for independent trading, for opening transactions using professional analytics, for investments on individual terms.
Each type of tariff is divided into many varieties, so choosing the most suitable option for yourself is not at all difficult.
In our opinion, the most the best solution for beginners - trading on analytical signals. The commission is 0.24% of the turnover - not very much. You can open deals by simply calling the broker and sending the order "voice".
Finam is more suitable for professional traders. There are great tutorials here, but not really suitable for beginners. trading conditions. In particular, the minimum deposit is 30,000 rubles, the leverage is only 1:50.
What does Finam offer as an alternative to unpromising conditions? Reliability. The Broker has a license from the Central Bank of the Russian Federation, which ensures the highest level of quality of services provided.
Even the broker Alpari, which is one of the leading companies in the CIS, does not have such a license.
The Zerich company, like Finam, is proud of the license of the Central Bank. Beginners can get free training in the basics of technical analysis here - the free course consists of 11 lessons. In addition, constantly updated analytics are available.
Experienced traders conduct both paid and free webinars daily, where you can learn everything you need about trading strategies and the state of the markets. The broker has offices in all major cities, so you can study offline.
See the video below for the trading conditions and benefits of Zerich.
6. How NOT to trade the stock market - 5 main mistakes of a novice trader
Above, we have identified the correct sequence of steps to follow for successful trading. Now let's highlight the five main mistakes of novice traders and analyze them.
Mistake 1. Staying in a losing position for a long time
“Everything repeats itself in the market,” the newcomer says and does not close the deal, although the price goes against him. In fact - yes, everything repeats itself. The only question is how long it will take before the next “repeat”.
Suppose we opened a long trade when the price was at 1.4165. The market went against us, we did not close, counting on the fact that everything would “repeat”.
Has there been a repeat? Yes. After 12 years. Was it wise to wait?
Error 2. Early profit taking
Most likely, in the first days of trading, you will close transactions when the minimum profit appears. “What if the price drops and I lose money?!” - your rational consciousness will not stop whispering to you.
Over time, you will realize that closing a trade ahead of schedule with a small profit is no better than flying out on Stop Loss with a loss. If we do not let profits grow, then losing trades (which cannot be avoided) will eat up the entire deposit.
Your strategy should clearly signal when to take profits. Don't act on "gut" no matter how the market behaves.
Example
When we traded in the equidistant channel, we closed trades when the price reached the upper border of the channel. Otherwise, even if the market went against us, they did nothing, Stop Loss and Take Profit did not move.
An illustration of our trading system:
If we were to close on the apparent reversal in price, the profit would be only a few cents. Trading discipline allowed me to work out the strategy and get the planned income.
When the opportunity presented itself, we closed part of the position, set breakeven and released the price at “ free swimming”, then taking good profits.
Do you want to learn more about our strategy on behalf of professionals? Then go to the broker's website, select the "Education" section and look for the course "Trading strategy. Basic principle.
It is taught by a professional trader - Marat Gazizov. The technique is extremely popular, really working. By the way, on his official VK page, Marat daily reviews markets for efficient trading. It won't hurt to take a look.
Mistake 3. The absence of a register of transactions and a trader's diary
All transactions must be analyzed in a diary in order to learn from your mistakes. For each transaction, it is necessary to write, according to the strategy, whether it was opened and closed, profit was received or loss, what lesson can be learned.
Instruction
The stock market began its history in the XVII-XVIII century. Its formation was due to growing public spending for military purposes and the urgent need to attract borrowed funds to replenish the budget. That is why bonds became the first securities. The first stock exchanges appeared in the countries Western Europe.
Today, the volume of the global stock market exceeds $50 trillion. The list of the most developed countries in terms of the volume of trading in securities includes the United States, Asia-Pacific countries and Europe.
The key purpose of the stock market is to redistribute free funds in favor of the most promising sectors of the economy. Companies and states use the stock market as a way to raise funds for the development of the company.
Some investors have managed to make huge fortunes in the stock market. The most striking example is W. Buffett. How do you make money in the stock market? It all depends on what securities are in the hands of the investor. If we are talking about shares, then they provide an opportunity to make a profit in the form of dividends, or from the difference between the purchase / sale price. The value of shares may rise under the influence of favorable market conditions and the successful development of the company. Bonds offer a fixed income. The advantage of investing in securities over other types of investment is the opportunity to receive unlimited returns, which can be many times greater than the profit from deposits. Moreover, this method of investment refers to.
The stock market has its own structure. It includes investors, brokers and supervisory authorities. The purchase of shares is carried out through special intermediaries - brokers. Three models of the stock market have been formed in the world. This is the Anglo-American model, where non-banking institutions act as brokers; German - here banks are brokers and a mixed model, where banks and non-bank organizations can be brokers.
Trading in the stock market is carried out on exchanges. The largest exchanges are the New York, London, Tokyo stock exchanges. In Russia, the MICEX-RTS exchange is the leader.
The stock market can be classified in various ways. From the point of view of securities, there are markets for shares, bonds and derivative financial instruments (for example, futures contracts). Issuers distinguish between the securities market of companies or government securities. By types of transactions, a cash (or spot), forward market, etc. can be distinguished. The stock market can also be divided according to industry and territorial characteristics. Such a variety of investment instruments allows you to apply a variety of trading strategies and diversify your investment portfolio.
Everyone who wants to increase their capital sooner or later becomes interested in the securities market. To date, the stock market is one of the most reliable, and therefore the most popular forms of capital investment. The advantage of stock markets over others investment decisions is as follows:
The stock market is one of the components of the financial market, where the goods sold are securities. That is why the stock market and the securities market are similar concepts. The mechanism of the securities market is that it contributes to the redistribution of funds between different sectors, that is, in fact, acts as a regulator market economy.
The functioning of the securities market helps to exist for those enterprises that, for whatever reason, cannot continue to produce their own products. Other individuals or legal entities buy securities put up for auction, thereby ensuring the inflow of necessary funds.
The securities market has the following functions:
Financial stock markets work thanks to the participation of some entities:
Depending on the role in the production process, the securities market is divided into two types:
The structure of the secondary market includes four subspecies. The first and main one is the stock exchange. It ensures that only listed assets are sold. Transactions made in subsequent markets constitute over-the-counter turnover. The second market, the over-the-counter market, differs from the one discussed above in that it provides transactions in which unregistered securities can be the object of sale. The difference of the third market is that the values in the contracts of sale are registered to intermediaries. The buyers of the fourth market are only institutional investors. The beauty of transactions in this market is that they go through computer systems. At the same time, intermediaries in such transactions are not needed.
The largest stock market companies are located in the US, Japan and Russia.
One of the most famous representatives of the stock exchanges is the NYSE. This is the New York Stock Exchange, which has a turnover of about sixteen and a half trillion dollars. Thanks to the audit of the state of various companies, the NYSE identifies eight indices. The latter show the state of a particular sector of the economy.
Another major stock exchange is the NASDAQ. It is also an American trading platform that sells securities. The capital of the exchange is five trillion, the exchange list includes three thousand two hundred companies, among which, by the way, there are four Russian stock market companies. The NASDAQ trading system includes thirteen indices.
TSE is in the top three. This is the Tokyo Stock Exchange. The market capitalization of TSE is four trillion, and the listing includes 2414 companies. Many large Japanese corporations are involved in the sale of securities through this stock market.
The Russian stock market is represented at the world level by the Moscow Exchange. It was formed in 2011 as a result of the merger of IMB and RTS. The turnover of capital is 23,800 billion rubles. The exchange list includes 280 companies. The main indices on the Moscow Exchange are two. One is responsible for rubles - the MICEX, the other for the currency - the RTS.
The stock market is primarily securities. And they are of several types:
Trading on the stock market can also be carried out with the help of derivative securities. These financial instruments are:
The Russian stock market is also represented by derivative financial instruments. They have enough popularity due to the fact that they are involved in speculation. Of greatest interest in such operations are futures for shares of Sberbank and Gazprom, the RTS index.
The link between investors and issuers is the stock exchanges, which are directly involved in the organization of trading. The stock market is a combination of several criteria:
To invest your money in securities, you must have a special permit for activities in the field of stock markets. Also needed an initial fee, which can be quite large and amount to several million rubles. Well, without software, too, there is nowhere to go.
It is impossible to do without intermediaries in transactions with securities. Intermediaries are stock market brokers who facilitate access to any trading platform. Therefore, it is important to choose a good broker. It is better to give preference to foreign companies.
Securities generate income by increasing their value. It is difficult to predict which stocks are profitable and promising, especially for a beginner. For this there are special specialists - traders. They can carry out trading operations for their landlord.
The Russian Stock Exchange offers securities in the commodity and banking industries. Issuers on the Moscow trading platform are not only domestic, but also foreign companies (for example, Facebook and Apple).
Stock exchanges are a promising industry, thanks to which the market economy is regulated. It is quite possible to receive good dividends in this area. For high profits, of course, it is worth making a lot of effort, carefully understanding the entire system. And cooperation with intermediaries will minimize risks and avoid serious financial losses.
The stock market today is an essential part financial industry where trillions of dollars worth of assets are traded. The capitalization of all stock markets in the world today is comparable to the GDP of the whole world, and even exceeds it. This industry employs millions of people.
But what is the stock market from the inside. What are the institutions and mechanisms that are responsible for the security and smooth operation of this huge monetary mechanism.
In this article, we will analyze the structure of the Russian stock market, its main players, their functions and what they give primarily to a private investor.
First of all, it must be said that the stock market and the securities market are not quite the same thing. classically under securities market understand any relationship between various market participants related to the circulation, issue, and withdrawal from circulation of various securities. The securities market, therefore, covers all types of transactions both in the exchange and in the over-the-counter sector. In turn, the stock market is a part of the national securities market, functioning in a structured and organized form in the form of a stock exchange.
Strictly speaking, stock market is an organized securities market, all participants of which work according to established rules.
Scheme of the stock market:
There are 5 types of participants in the stock market:
Market participants issuing securities. They are also called issuers. These are, for example, enterprises issuing shares and bonds, as well as the state and subjects of the federation issuing bonds.
Market participants organizing the circulation of securities. it exchange where securities are bought and sold by private and institutional investors and traders, and depositaries and clearing companies responsible for the control of settlements and accounting of purchase and sale transactions.
The next group is the participants who organize access to the financial assets of the exchange for a wide range of traders and investors. it brokers management companies, and dealers. These companies have the right to carry out transactions on the exchange both on their own behalf and on behalf of their clients, thus providing access to the exchange market to everyone.
Perhaps the most important group, for the sake of which the entire infrastructure was created, is the private and institutional investors and traders. Those who acquire securities both for the purpose of holding and for the purpose of resale.
A separate group deserves the main regulator, which establishes rules for all participants, constantly monitors the activities of participants and strictly punishes violations of the rules - this Central Bank Russian Federations(TSB RF).
So, the basis of the stock market is precisely the stock exchange, on which transactions are carried out only with stock assets and instruments registered (quoted) on it. The range of such financial values is currently expanding significantly. These already include not only the securities themselves, but also currencies and precious metals, contracts, loan agreements, as well as various hybrid instruments created on the basis of other securities, currencies and contracts (for example, futures and options).
First in modern Russia in May 1990, the Moscow Commodity Exchange was established. In 1991, more than a hundred exchanges were already operating in Russia, which is about half of the exchanges existing at that time in the world. In 1992, the main stock exchange platform MICEX was created, and in July 1995, the modern RTS market appeared. In 2010, these exchanges announced a merger, and already in December 2011, on their basis, the largest integrated exchange structure in Russia was created, renamed the Moscow Exchange.
Today, the exchange and other institutional participants in the organized securities market in Russia form a system with a very a high degree regulation, transparency and orderliness of operations. Which, first of all, is aimed at protecting the interests of investors.
Stock Exchange is an organization that provides a platform and infrastructure for organized trading in securities and other financial assets. In the 21st century, the exchange is, first of all, a high-tech company, the basis of which is servers, high-speed and secure equipment, and the latest software. Since the main task of the exchange is to connect hundreds of thousands and millions of buyers and sellers of financial assets via the Internet and provide them with the opportunity to conclude transactions with each other. Millions of transactions are made daily on the Moscow Exchange. The strategic task of the exchange is to maintain market liquidity. A liquid market implies a high frequency of transactions, significant trading volumes, which leads to smooth price movements and low spreads (the difference between the purchase and sale prices at the same time). The low liquidity of the market, on the contrary, leads to tension among the participants of the exchange, the fear that there will be no one to sell the asset and the emergence of negative expectations and panic among participants in the exchange trade.
That is why the activity of the exchange is strictly regulated. At the same time, the owners of the exchange do not have the right to extract and receive any income from the purchase and sale of financial assets on the exchange. This ensures the impartiality of the exchange regarding the prices of the assets themselves. At the same time, the exchange earns on commissions, and if the exchange has high liquidity and many bidders, the exchange will be a fairly profitable organization (for example, the New York Stock Exchange, Moscow Exchange, etc.).
Only special, accredited participants - brokers, dealers, management companies that have the appropriate licenses - have the right to trade on the stock exchange. In turn, private and institutional investors and traders who wish to trade on the stock exchange participate in exchange trading indirectly through these accredited organizations that act as intermediaries. To do this, it is enough to open an account in this organization.
Currently, there are several stock exchanges operating in Russia. However, the real main volume of trading in stock values is actually concentrated on two exchanges:
OJSC Moscow Exchange.
This exchange was formed in 2012 through the merger of the MICEX and RTS exchanges. It is currently the largest stock exchange in Russia and the CIS. Quotes of this exchange are backbone and are used, for example, to establish the official exchange rate Central Bank. The Moscow Exchange has several trading sections, within which traditional securities, such as shares and bonds, as well as derivatives, are traded. financial instruments, such as futures, options, there is a currency section and even drag. metals. The financial group of the exchange also includes the central depository (NCO JSC "National Settlement Depository") and the clearing center (Bank "National Clearing Center").
JSC "Saint-Petersburg Stock Exchange".
In November 2014, trading in foreign securities began on the St. Petersburg Stock Exchange. Now more than 180 shares of the world's leading companies, such as Apple, Facebook, Visa, and others, are admitted to trading. The plans are to make all US stocks from the S&P-500 index available to Russian investors. These are the 500 most liquid and interesting stocks on the US market. In fact, this is a great way to diversify your investment portfolio across countries and currencies without actually opening a foreign brokerage account. We wrote in more detail about the St. Petersburg Stock Exchange in the article "".
Management companies can also be accredited participants in the stock market; they manage clients' capital at their own discretion and, if they make a profit, share it with clients.
For an ordinary investor or trader, both physical and legal entity the services of a broker or management company will be much more accessible. By entering into an agreement for brokerage service, the investor for a commission (percentage of the transaction) gets the opportunity to carry out trading operations on the stock exchange from his brokerage account for a certain time. In case of management company- the client transfers funds for management to professional market participants, expecting income after a certain period, while he himself does not participate in the selection and evaluation of securities. In the article "" we described the advantages and disadvantages of each of these methods.
It is important: It is worth noting that the activities of brokers are organized in such a way that client accounts and brokers' own funds are strictly separated, in fact, brokers do not have the right to access client accounts. In contrast, for example, from banks, where the client simply gives the amount of funds, and the bank disposes of them at its discretion, lends, etc. Further, when we talk about depositories, we will see another mechanism for protecting clients' brokerage accounts.
In modern conditions of the development of electronic technologies, exchange trading is becoming more and more accessible to ordinary, non-professional participants in the stock market. And not only brokers are appearing, but also sub-intermediaries, such as Tinkoff Bank, which, on the one hand, charge higher commissions for transactions, and on the other, allow transactions to be made via phone in just one click.
An example of a technical solution for private investors in personal account Bank Tinkoff:
We have already described the role and functions of all key participants in the stock market. Let us now consider the auxiliary participants who are involved in the control and maintenance of the infrastructure of the stock market. The institutional infrastructure of the stock market, which ensures its functioning, but is not directly involved in exchange trading, includes depositories, clearing organizations, financial institutions and a market regulator (in Russia, this is the Central Bank, which has been a macro regulator in the financial markets since 2014).
The main task depository activities is the accounting and registration of the transfer of rights of holders of securities, as well as the storage of information records about the holders of securities. The depositary confirms and protects the rights of securities holders from illegal actions of the issuer or broker. Depositories operate on the basis of a license and their activities are also controlled by the Central Bank of the Russian Federation. Depositories assist in exercising the rights of securities holders, for example, when receiving dividends, exercising the rights to manage a company through participation in general meeting shareholders, etc. To this end, the depository can provide related services: maintaining clients' cash accounts, representing the interests of a shareholder at the annual general meeting, monitoring the issuer's activities, market analysis, tax and investment consulting, etc.
It is important: From an investor's point of view, depositories perform a very important protective function. Since all securities records are stored in the depositary, this makes the client independent of the broker. Closing his brokerage account with a particular company, the client continues to be the owner of the securities. It is also a kind of insurance in case the broker closes due to different reasons. We can simply go to another broker to open an account and continue to trade in our securities.
At the same time, the storage of information records about the owners of securities in the depository does not mean the transfer of ownership of the client's securities to the depository.
clearing organization deals with the definition of mutual obligations of participants in exchange trading. The clearing organization also operates on the basis of a license. In fact, the clearing house of the exchange monitors all transactions, fixes the initial and final sellers for transactions. Next, the clearing house must determine how much brokers and dealers should pay each other at the end of the exchange session.
Today, the most important regulator in the stock market is the Central Bank. But it was not always so. The first regulator of the Russian stock market was established in 1993 by Federal Commission on the securities market. Further, its powers in 2004 were transferred to the Federal Financial Markets Service (FFMS). And since 2014, the functions of the securities market regulator have been concentrated in central bank RF. Within the Central Bank of the Russian Federation, the stock market is handled by the securities market department and commodity market who has been given all the powers Federal Service on financial markets in the field of licensing professional stock market participants, regulation, control and supervision of their activities.
Therefore, for private investors, the main guarantee that they are dealing with an accredited broker or management company is the availability of appropriate licenses issued by the Federal Financial Markets Service or the Central Bank of Russia. It is worth noting that most Russian brokers, for example, in the forex market, do not have any licenses for their activities. Which speaks of the complex legal status and sometimes even the illegitimate activities of such companies. In turn, the activities of stock market brokers are more transparent. On the exchange website, you can see lists of such licensed brokers, as well as their various ratings, and make sure that the company you plan to work with is reliable.
The stock market is one of the most attractive objects for investing free cash. Despite the financial risks, this market provides an investor or trader with the prospect of obtaining high returns and relatively guaranteed liquidity of their investments. In Russia, the stock market is quite young and greatly underestimated. That is why it is quite dynamic and is of interest not only for domestic, but also for foreign investors. In order to understand how to take your first steps in investing in the stock market, we invite you to our free master classes, where we tell you how to minimize risks, find protected investment assets and at the same time achieve stable and decent returns -.
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Last update: 01/26/2020
Good afternoon, dear readers of the financial magazine "site"! Today's post is dedicated to stock market (securities market) and stock exchange . Contrary to the opinion of many, this is not the same as Forex. About that, we wrote in the last issue.
From today's article, readers will learn:
At the end of the publication are professional advice, which will help to trade successfully novice traders. It will also be useful for readers to get acquainted with the answers to the most popular questions.
The publication will be of interest both to newcomers to the stock exchange and to those who already have some knowledge in this area. Remember: time is money! So do not waste a minute, rather start reading the article!
What is the stock market (or securities market), what stock exchanges are, how and where to start trading in the stock market for a beginner - read about this and more in this article
Stock market otherwise called securities market. He is essential part financial market, because it is here that all existing species valuable papers.
In the course of the active activity of the company, when it develops, there inevitably comes a moment when own funds are no longer enough. In order not to stop there, management will have to find ways to attract additional money.
Usually for these purposes use:
Financing options related to issuance of securities, carried out through stock market. It turns out that it is a place where money is attracted and redistributed among companies, economic spheres, market participants and other subjects of the securities market.
The basis of the stock market is its participants. They can be classified based on various characteristics. Let's take a closer look at what they are.
Intermarket name those participants engaged in servicing or working simultaneously in different markets, one of which - stock.
Such participants include owners of funds who invest them in a variety of assets: not only in securities, but also in real estate, currencies, and others.
In addition, intermarket participants are agencies that provide information, provide advice, compile ratings, and other professionals working in several different markets at once.
Concerning intramarket, such participants, on the contrary, use exclusively or mainly securities in their activities.
Intramarket participants are professional and unprofessional.
Non-professional participants - These are issuers, as well as investors who invest all or part of the money intended for investment in securities.
Professional participants of the securities market carry out certain functions in the stock market. These activities can be carried out only after receiving licenses.
Among the professional participants are:
The latter carry out certain types of activities in the securities market:
The stock market is a complex structure with a large number of different qualities. That is why it is necessary to study the securities market from various angles.
For ease of understanding various structures tabulated:
| No. Sign of comparison | Market Type | Description |
| 1. Treatment stage | Primary securities market | This is the market where the emission (that is, the release) is carried out |
| Secondary | Represents the sphere of circulation of previously issued instruments | |
| 2. Adjustability | Organized | There are clearly defined rules for handling |
| unorganized | Appeal is carried out on the basis of the agreements of the participants | |
| 3. Place of conclusion of transactions | Exchange | Trading is carried out on stock exchanges |
| OTC | Operations are carried out without the participation of exchanges | |
| 4. Type of trade | Public | The parties to the transaction meet physically. There is a public trade or closed negotiations |
| computerized | Represents various forms of operations using networks, as well as modern means of communication | |
| 5. The term of the transaction | Cash (spot or cash) | Transactions are executed immediately, there may be a small gap in time (up to 3 days) if the physical delivery of the security is planned |
| Urgent | The transaction is executed after a certain period of time, which can be equal to several weeks or even months |
All presented types of markets are interconnected. Thus, the circulation of most securities is carried out on stock market . He always refers to the organized . In contrast to this, over-the-counter is both organized and unorganized.
In modern developed countries there is no unorganized market. Organized is presented exchanges
, as well as various electronic trading systems, which are an over-the-counter market.
Stock Exchange is an organization that creates the necessary conditions for concluding transactions in the securities market.
There are several distinctive characteristics of the computerized market:
The spot market occupies a large part of the securities market. Derivatives are most often sold on the forward. It is subdivided into:
The stock market performs a number of important functions in the economy. They are divided into 2 large groups - general market and specific.
General Market Functions characteristic of any market. These include:
Specific functions of the stock market:
Thus, the stock market is an indispensable part of the economy. It is diverse, includes a large number of participants and performs a number of important functions.
The largest stock exchanges in the world (by capitalization) are London, New York (American), Tokyo and others
AT modern world there are a huge number of stock exchanges. Their number reaches several hundred. However, not all of them are popular among investors.
To earn a good reputation, the exchange must not only be a reliable intermediary, but also serve customers in the most high level, as well as provide the maximum number of tools.
Experts single out several world exchanges, which, thanks to the maximum efficiency of their activities, have earned credibility among a huge number of market participants for many years.
She is popular all over the world. Today, this exchange is one of the most influential in the world and is in first place in the world rankings. This exchange was formed not so long ago - in 2007 year. But the creation was carried out through the merger of two major world exchanges - NYSE With Euronext. The resulting exchange took over the full power and reputation of the two exchanges.
The influence of the New York Stock Exchange can be judged by some data:
Strives to be as close to the leader as possible. To date, the capitalization of NASDAQ is in second place among the world's stock exchanges. The exchange officially started on 1971 year, but in fact its history began earlier - after the signing "Acta Maloney". It was at this time that an association of dealers was formed for the first time in the world.
Features of this exchange consists in the uniqueness of the trading system. There is some kind of competition for the execution of transactions. At the same time, each market maker has a certain number of securities. Their function is to help maintain the liquidity of their shares, as well as set their value.
In order to increase the influence of NASDAQ, two times tried to acquire London Stock Exchange , but unsuccessfully. To enter the European market, the exchange had to buy over seventy percent of the shares OMX Group is the largest association of companies in Sweden.
This exchange is one of the oldest and largest. The year of its formation is considered 1878 . During the time that has passed since that moment, the exchange has managed to reach the third place in terms of capitalization.
At the moment, securities of Japanese companies, banks, as well as foreign issuers are circulating in Tokyo. Their number now exceeds 2,300. At the same time, more than eighty percent of the turnover of Japanese exchanges passes through Tokyo.
There are 3 types of participants in the auction:
AT 1570 In the same year, a royal adviser named Thomas Gresham founded the London Stock Exchange. It is a joint stock company.
For the most part, local stocks are traded here. They are divided into several groups, the main ones are:
An important feature of the London Stock Exchange is that it is open to international firms. Furthermore, over 50 % The shares traded here are owned by foreign companies. In addition to stocks, options and futures are also sold here. The capitalization of the exchange today is more than two trillion.
The stock exchange regularly calculates its own index - FTSE100. His analysis allows us to assess how successful the British economy is.
Today it is the largest of the exchanges located in China. According to the level of capitalization, experts usually place it in fifth place.
The Shanghai Stock Exchange was established in nineteenth century. At that time, foreigners were forbidden to buy shares in Chinese companies. In order to somehow circumvent this limitation, Chinese businessmen organized the Shanghai Association of Brokers.
As a result, through 10 years, the government allowed the trading of Chinese stocks. This allowed the exchange to function and develop normally.
On the modern Shanghai Stock Exchange, shares of companies listed investment funds, bonds.
The main requirement for companies to enter the stock exchange is to conduct business at least 3 years .
With the use of all instruments circulating on the stock exchange, the index is calculated SSE Composite. Its value at the level is taken as the base 100 . Depending on the situation on the market, the index changes up or down.
Among Asian stock exchanges, Hong Kong ranks third place.
Unofficial activities started with 1861 of the year. Wherein official foundation happened in 1891 year.
Since 1964, an index has been calculated, which is called hang sang. Dozens of the largest companies in Hong Kong are taken into account.
This exchange is the largest in Canada and is rightfully one of the seven most popular exchanges in the world. It was created by several Canadian brokers in 1852 year. Less than a quarter of a century later, the Toronto Stock Exchange was recognized by the state. From that moment on, she began to earn her worldwide fame.
Today, shares of several thousand industrial organizations are traded here. At the same time, most of the market belongs to companies whose activities are related to natural resources.
To date, the capitalization of the Toronto Stock Exchange exceeds one trillion US dollars.
There are quite a few goals fulfilled by the stock market. Working here, traders and investors in without fail must choose the best tool for themselves, especially since their number is large. Let's take a closer look at what is traded on the stock market.
Stock is an equity security. It allows the owner to receive a share of the company's profits in the form of dividends, and is also proof of ownership of the company's shares.
If one investor manages to acquire more 50 % of the shares, he will have the opportunity to influence the activities of the company.
It is possible to distinguish a number benefits and shortcomings that are inherent in stock trading.
Among the advantages can be identified:
The main disadvantage of stock trading is that there are no guarantees of profit. The cost does not always move in the right direction, which means that there is a risk of losing the invested funds.
Bonds are debt securities, that is, they confirm that the person who bought them gave the company a loan. As a payment for the service rendered, the organization pays dividends.
Bonds typically yield lower returns than stocks. The risk is also much lower. But it is, since the company may go bankrupt, then the investor is likely to lose the money invested in its bonds.
Futures represent a futures contract related to the transaction of the asset embodied in it, in the future the transaction must be concluded at the price that is fixed at the time of the conclusion of the agreement.
Most often, the underlying assets are:
Profit from futures depends on the growth in the value of this contract.
Option is a fixed term contract. The most popular among them are those in which the underlying asset is used currencies and precious metals.
To make a profit by trading options, it is enough to guess how its value will change over time. By the way, we have already talked about it in one of our publications.
It is important to understand that the above list of securities is not exhaustive. There are also other tools such as checks , swaps , bills . But among traders they are not popular.
The main ways to make money on the stock exchange
In today's world, the largest industry is activity in the stock markets. Their total capitalization in the world is equal to the total GDP all countries and reaches seventy trillion dollars.
Every day, the number of people involved in this industry is increasing, today it has already reached several million. They are attracted by the potential opportunities offered by the stock market. Moreover, there are several ways to earn money here, among which everyone can choose the right one for him.
It is quite natural that each earning option has its own Advantages and disadvantages. Consider the main methods, as well as the pros (+) and cons (-) inherent in them.
This way of earning is one of the most popular. It attracts with its potential opportunities, as well as essentially unlimited profits.
The goal of a trader, as in any other trade, is one- buy low, sell high. In this case, transactions can be made at different time intervals:
All trading will take place with the help of a special program that allows you to enter the stock exchange online and conduct transactions, - terminal. It should be installed on the computer after choosing a broker, using the download link provided on the website of the brokerage company.
After installation, the terminal should be configured by setting convenient chart parameters, adding the indicators and tools used to them.
A demo account allows you to psychologically prepare for the start of work, check the intended use trading strategy .
After you gain confidence in your own abilities, as well as in the chosen strategy, during trading on a demo account, you will be able to achieve a steady profit, you can open real account .
It is important to understand that if you cannot achieve a positive result when trading on a demo account, you should not start working with real money.
Professional traders advise switch to real trading only when you can double the amount on the practice account. The fact is that even with successful trading for several days, you cannot be sure that in the future it will turn out to work in plus.
The market is unpredictable, often its movements are completely unexpected. Receiving one hundred percent income allows you to be sure that you can withstand even a significant drawdown in your account.
When all the previous steps have been completed, you can start buying and selling securities, guided by the chosen strategy.
Perhaps at first, drawdowns will be quite significant, since the fear of losing real and play money is significantly different.
Thus, starting to work in the stock market, a beginner should be prepared for the fact that he will need maximum patience and discipline. It is forbidden rely solely on luck and intuition, you should not deviate from the plan.
If at some point the chosen strategy ceases to be profitable, it is best to stop trading for a while. After that, it is worth analyzing the results and, possibly, changing some trading rules.
Today on the market a large number of companies that offer mediation services between a trader and an exchange. Therefore, it can be difficult for a beginner to choose a truly reliable broker.
In order not to be mistaken, it is best at first to use the rating compiled by professionals.
Many believe that this company is the best broker in the Russian stock market.
Here they offer trading with a large number of instruments:
Beginners are advised to use the tariff start . During the first month of operation, the broker will charge a commission equal to 0,0177 % of the deposited amount. Subsequently, the company's remuneration will be determined in accordance with the account turnover.
BCS provides its customers with the opportunity to use high-quality analytics. For training, webinars and seminars are offered here. Those who wish can also use the service of private lessons.
The fact is that the minimum deposit in Finam is 30 000 rubles, while the maximum leverage is only 1:50 .
Despite not very comfortable conditions, the broker is popular. It explains it reliability. Unlike most existing Russian companies, Finam has license issued central bank . This is a guarantee of the highest quality of the services offered.
There are three options for cooperation:
Each option provides a large number of possible tariffs. Therefore, everyone can choose the ideal option from this broker.
Professionals recommend that beginners use trading on analytical signals. The commission here is not very high - only 0,24 % of the turnover on the account, while it is possible to make transactions by simply calling the broker.
Most often Alpari used to work on Forex. However, today they offer several futures options for trading. A further increase in the number of instruments is planned.
The undoubted advantage of the broker is the availability of high-quality training programs. Every day, everyone (including unregistered users) can view a large number of webinars.
Thus, when choosing the best broker, it would be useful to take the advice of professionals. Many of them have worked with several companies, so they talk about all their features from the client side.
It is very difficult for most traders to start earning income in the stock market, and most often the difficulties are associated with the behavior of the trader himself.
The fact is that many people make similar mistakes, fall into the same traps. Most of them are the result of the failure of a clear trading strategy.
Chaotic trading can lead to significant losses. At the same time, most problems can be avoided if you use the advice given by professionals.
Trading must be carried out in accordance with a certain system. Each trader should develop a set of rules for himself discoveries and closing positions.
Next, you need to verify their performance using demo account . If the test result is positive, you can trade using the system on the real money. At the same time, it is important to strictly follow the developed rules.
Do not try to beat the market by opening a huge number of positions. enough to make a profit one carefully thought out deal. Therefore, among the huge number of signals to open a position, it is worth choosing the one that best suits the system used.
If there is no clear signal, you should not enter the market at all. Sometimes absence open positions is the ideal position.
A trader should not forget that in the course of trading losses are inevitable. It is important to learn how to set correctly Stop Losses taking on the losses.
Do not be afraid of small minuses, as these are not losses, but inevitable expenses. Only competent loss management, which means risk, allows trading to be as effective as possible.
Do not rush to get huge profits.
The position should be opened as close as possible to the support level. Immediately you need to set Stop Loss.
If the price goes in the wrong direction, the loss must be fixed.
After entering the market, you should let the position develop, leave plus (+). But in the case of approaching the resistance line, one should straightaway close the position.
Do not be greedy, otherwise the price will turn around and the profit will be noticeably smaller.
At the time it was received minus (-), the necessary transaction was mistakenly closed, the operation was not carried out according to the rules, novice traders are trying to fix something, rushing to open new positions. Do not do this, as you can break firewood.
It is better to get out of the market for a few hours or even days, until the ability to soberly assess the situation again appears.
A trader should get rid of excitement, it is recommended to conduct transactions calmly, adequately assessing the situation.
If a trader gets excited, he only creates the appearance of analysis, in fact, ignoring the most important signals. Transactions in this case are opened hastily, which inevitably leads to sad consequences.
Those who trade by analyzing charts do not need to view the news. It should be remembered that the schedule takes into account both past and future events.
Important! Any actions should be performed on the basis of the trading system.
Training should be continuous . Many traders, thinking they know everything, begin to lose money. Often they place deals based only on knowledge, neglecting analysis.
Remember: there is always an opportunity to learn something new. Even if the system works, new knowledge can help increase profits and reduce losses.
Don't trust completely technical indicators, advisors, as well as untested strategies.
Before using the strategy in trading on financial market, important make sure it works demo account.
Today, the Internet offers a huge number of options for win-win earnings, which in fact turn out to be a banal deception. There is an article on our website that explains in detail - it only real ways earn money online!
Thus, success in the stock market is possible only as a result of hard and painstaking work.
No need to believe someone who promises huge earnings in a short time. Trading - it is always an expectation (the best moment, exits in the plus). You won't be able to earn fast and guaranteed here.
It should be noted that the main liquidity comes from the Moscow and St. Petersburg stock exchanges. However, other platforms continue to function.
The first step to trading the stock market is choice of broker .
At the same time, most beginners are guided by the following criteria:
All brokerage companies offer different customer service plans. Usually they are determined by the nature of transactions.
Studying the reliability of the company, you should pay attention to how much it operates in the market. Naturally, you should not trust brokers that have been operating for one or two years. It is useful to pay attention to who owns the shares of the company. The most reliable will be those brokers, part of whose shares are owned state .
The number of clients is determined by the number of active trading accounts. It allows you to assess how much market participants trust a particular broker.
When choosing a broker for cooperation, it is important to consider all factors in the aggregate. This is the only way to choose a truly reliable partner and not be dragged into fraudulent schemes.
Among traders who work not only in the securities market, there are frequent attempts to compare fundamental and technical analysis. They try to understand which of the tools is better and is able to help to get more profit.
It is these two groups of methods that make it possible to analyze investment attractiveness of shares . At the same time, they have significant differences, which lie both in the tools used and in the time period in which the methodology is applied.
Traders who rely on fundamental analysis , focus their attention on how the demand and supply of goods and services of the company correlate. In doing so, they analyze the following indicators:
Traders who use fundamental analysis often buy securities on long term. Therefore, they do not pay attention to how the stock price changes on a particular day.
During technical analysis, on the contrary, changes in the value of the instrument, reflected on the chart, over time are studied. It is noticed that the price forms various figures and models that repeat periodically. Therefore, when analysts notice another formation of an established pattern or pattern on the chart, they draw conclusions about further price changes.
Fundamental analysis allows you to judge the power that is embedded in a particular security. Technical analysis allows you to judge how volatile their value is. However, both types of analysis have their own Benefits and limitations .
Benefits of (+) Fundamental Analysis are that it allows you to judge what are the trends in the market, as well as what factors influence it. It turns out that fundamental analysis allows you to understand what is the reason for the current trend.
Important minus (-) of such a market assessment method is lack of visibility . It can be difficult for beginners to compare the results obtained during the analysis with graphic displays of the market. As a result, trading errors often occur.
A trader who uses fundamental analysis, forced to keep abreast of all events . At the same time, it is important to monitor not only the news of the economy, but also industry, the world, and politics. In this case, one cannot do without basic knowledge of all these economic sectors.
Technical analysis is the work with graphical price display. From here it follows main advantage (+) – visibility . Many people think that this analysis option is much easier to master. All the necessary tools are already built into the terminal, so you don't have to spend time looking for information.
Among cons (-) technical analysis the main one is subjectivity - each trader interprets the information reflected on the chart in his own way. Moreover, technical analysis does not allow you to understand why this or that movement occurs.
After studying the pros and cons of each method of analysis, each trader can determine the most preferable for himself. At the same time, professionals recommend using them In total because usually they do not contradict each other.
Fundamental analysis allows you to determine the main trend, the confirmation of which can be found in the technical. Thus, the combination of two types of analysis allows you to get a more complete picture of the market, use the maximum chances for making a profit.
The development of the Internet has allowed traders to trade on the securities market of the stock market of almost any state. In this regard, they often ask the question, which market to choose .
Most often, Russian traders consider two alternatives - Russian and American stock markets. To decide, you should consider the advantages of each of them.
Advantages of the Russian stock market:
The work of Russian traders in the US market also has a number of advantages:
Thus, Russian exchanges are more suitable for novice traders, as well as those whose capital is limited to one million rubles.
After the basics of the exchanges become clearer, and the amount of investments increases significantly, you can safely enter the American market. Moreover, it is possible to combine work in two markets in order to diversify risks.
In this publication, we have tried to cover the issues of working on the stock market as much as possible. For the convenience of traders, we told you how to start trading on the stock exchange, gave tips that will help you achieve stable profits.
Moreover, we have compared the most popular brokers, as well as types of stock market analysis.
So that you don't have to search useful information on other resources, we have tried to answer the questions that most often arise among novice traders and novice investors.
As well as a video on how to make money on stocks and securities in the stock market:
The RichPro.ru magazine team hopes that this material was useful, expanded knowledge about the securities market and the basics of stock trading. We wish you good luck in all your endeavors!
P.S. If you have any comments or questions on the topic, then ask them in the comments below.
