Stocks are an interesting, effective and accessible to almost everyone instrument of the stock market. Moreover, they are doubly interesting for private investors: on the one hand, with the help of a broker, you can operate shares and receive income from buying and selling, on the other hand, dividends are accrued on shares, which can sometimes be more profitable than a bank deposit.
Stocks as an investment tool seem simple and extremely safe. Yes, in fact, stocks are the tool on which it is difficult for an investor to go broke or suffer a deep loss. However, everything is not as simple as it seems, so it is worth listening to the advice of experts.
Form your investment goal. Plan the desired income or percentage at least within the "not lower" framework. This way, you will be able to not only make transactions, but also review your portfolio and strategy, moving towards your goal.
Be flexible - if the external situation in the economy has changed, something has happened to the issuers of your securities, unexpected risks have appeared, do not be afraid to review your stock portfolio, even with small losses.
Manage risks - form a portfolio of securities from several assets, combine securities with different terms, risks and returns.
Don't avoid foreign issuers - there are many interesting companies on the market today (especially in technology) that are capable of providing income growth on their shares.
So, we have already mentioned how you can make money on stocks.
Now let's summarize:
receive dividends - regular payments to shareholders (distribution of the company's net profit among shareholders);
earn on an increase: buy company shares cheaply, and after some time sell them expensively;
earn on a decrease: borrow shares from a broker, sell at a high price; when the price falls, buy them back, return them to the broker, and remain in profit
You can buy shares yourself from issuers or through a bank, but you will not have wide opportunities to make transactions with them.
The most you can count on is dividends and selling an asset during growth. In addition, the range of issuers for you will be limited - at least because not all global issuers are available for buying shares in Russia without a broker. So, you need to find a broker - a qualified intermediary who will buy and sell shares on your behalf and at your expense, help you navigate analytics, pay the necessary taxes, etc.
It is thanks to the broker that you will get access to sites all over the world. Again, the broker will give you access to expert analytics and, most importantly, to specialized software. The broker will take a commission for his work - as a rule, at first these are completely imperceptible amounts for a private investor. The higher the income, the higher the commission (but not its percentage!).
When using the services of a broker, do not save on trifles - you should not get involved with unfamiliar companies that promise mountains of gold. A qualified, professional and honest broker is more than half of your success in the stock market. So it is definitely not worth the risk.
Identifying a profitable stock is not that difficult. There are publicly available quotes for stocks of various companies, and most of them are available in retrospect: you can look at the rate fluctuations over a period of a month, a year, and sometimes even three years or over the entire period of the issuer's shares. This is useful information, it will give a primary idea of the assets that you are going to buy.
However, it is very inconvenient to go to various sites, determine how relevant the information is, then go to the issuers' pages and look for their news... This whole process takes a huge amount of time!
