What is the best way to trade on the stock exchange for a beginner? How to learn how to trade shares on the stock exchange: step-by-step instructions from theory to practice. Russian Stock Exchange

I receive a lot of questions from people who want to start trading on the stock exchange and make money through speculation. They ask for a vector, a sequential algorithm of actions. In this article, I will tell you without embellishment and give answers to questions about what you need to know and where to start trading on the stock exchange.

Exchange trading is becoming more and more popular in Russia and the CIS countries. Everyone is interested in how to make money by speculating in the stock market. To inexperienced people, trading on the stock exchange is perceived as an opportunity to earn easy money. Or, on the contrary, those who are of an older background and have experienced all the delights of financial pyramids from the times of MMM treat the stock exchange in the same way as another money scam.

The point of view of both people has a right to exist, but has nothing to do with reality. Trading on the market is a legal activity with its own rules and procedures, supervised by government regulatory authorities.

Trading on the stock exchange attracts with its imaginary simplicity. Anyone who approaches business with such thoughts will subsequently suffer defeat, be disappointed, and never return to trading. Persistent and hardworking people achieve success. However, there is nothing new in this. This is the case in any business, only on the stock exchange there are no rental fees, penalties, difficulties with logistics, personnel and other things inherent in business in the real sector. All you need is a trading account and a computer with Internet access. That's it, you can already work and earn money.

If you are determined to start trading on the stock exchange, then carefully study this article. All this has been tested on myself and with my own money.

Initial settings

I repeat. The very first thing that a novice speculator must understand is that there is no such thing as easy money, there is no freebie, and the stock exchange is no exception in this regard. As with any activity, you will have to work hard to achieve results. There is no need to carry sacks here, nor load wagons. It will be necessary to work exclusively with your head. But believe me, it's worth it.

• Never quit your job, thinking that you will immediately earn a lot of money for your living by trading on the stock exchange. Trading involves risk. Here, money is both earned and no one is immune from losses.
• At the initial stage, consider trading as a hobby, but take this matter seriously. Additional income from speculation may well exceed your salary at your main job by several times. Potentially, endless enrichment is possible in trading. It just depends on your trading skills.
• Take your time. Try to do everything thoroughly and think it through to the end. A big mistake of novice traders is haste. I know a lot of stories when a person, without properly studying the subject area, started trading and lost to smithereens. Since it was not trading, but a game, no different from a casino. But trading on the stock exchange is not a casino, and you will have to pay for frivolity.
• Do not bring your last money to the stock exchange, which means a lot to you. Do not take loans for trading, and do not borrow. You should start trading with free amount.

Try not to advertise left and right that you have started trading. Pressure from outside is of no use to you at the initial stage. Do it for yourself, silently and calmly. You will sound the trumpet when you get positive results. Although you won’t have to blow the whistle, everyone will notice and start asking where you made your money :)

Realize that you will need time to study and gain experience to get results. It all depends on the individual characteristics of the person: his desire to learn and his desire to achieve results. Just try to be consistent in everything.

If you want to significantly save time on learning stock trading, then I recommend going through.

Domain learning

There is no need to invest money at the first stage, because... First you need to thoroughly study the subject area. Often, for beginners and those who want to “start getting rich quickly now,” everything happens exactly the opposite. They immediately take money to the stock exchange without studying the subject. It’s clear how such stories end - wasted money, time and nerves. It is necessary to understand what trading on the stock exchange is all about.

What you need to learn to trade on the stock exchange

You need to know the specifics of the exchange you are going to trade on.

• principles of operation of the exchange;
• tools of the trade;
• bidders;
• principle of price formation;
• due to which the price rises/falls;
• trading time;
• tool specifications,
• types of market analysis;
• etc.

In general, study your field of activity. As a rule, the website of the exchange on which you plan to trade is sufficient for this. All of the information listed above is publicly available there. In addition to the website, it would be a good idea to read additional literature about trading on the stock exchange.

Literature about the stock exchange

There are many books on stock trading. I read a lot of them, not counting the information on various sites and forums on stock exchange topics. Of all the books I've read, the books that stand out the most that I can recommend are:

1. . V. Tvardovsky, S. Parshikov - The only sensible book at the moment about trading on the Russian stock market from the founder of an investment company.
2. . Larry Williams - a book from a trader with a profit record and multiple winner of the Robbins World Cup of Championship of Futures Trading. He was a member of the Board of Directors of the National Futures Association.
3. . Linda Raschke, Larry Connors - An excellent book from practicing traders.
4. And . Jack Schwager - in the book, the author interviews the best managers and investors in America.
5. . Edwin Lefebvre - a book about the world's most famous speculator, Jesse Livermore. It was first published in 1923. And today it remains one of the most popular books in financial literature.

Choosing a broker for trading on the stock exchange

Broker is an intermediary between you and the exchange. With its help you can make transactions in the market.

After you have read the introductory data and studied the subject area, the question arises: how, having knowledge about the subject, make money on the stock exchange? At this stage, market analysis begins. Next I will tell you what is meant by this point.

Market analysis

Trading terminal

Market information is displayed to the trader in the form of a price chart. The chart can be viewed in the trading terminal. There are not many terminals provided by brokers on the Russian stock market. The most popular is the QUIK terminal. There is everything you need for trading. I am satisfied with everything about it, so I recommend it to you too. You can download the QUIK terminal on the broker's website.

If you want to trade currencies on Forex, then you will need to familiarize yourself with the most popular trading platform.

Each broker provides demo access to a trading terminal.

Demo account- this is an excellent opportunity to learn and test the functionality of the terminal in virtual trading mode. This is useful and necessary. I discussed in detail how to open a demo account and set up a QUIK terminal for trading.

The only and main disadvantage of virtual trading is that it does not reflect the full reality of what is happening, and does not affect your emotional component, which greatly influences trading. Therefore, I recommend opening a real account immediately.

Search for patterns

Money on the stock exchange is made based on patterns that tend to be realized in the future according to a certain scenario. At this stage, observation is required. You need to monitor the market and try to notice when the price behaves in a certain way. This is called a pattern, template, price pattern or signal. Many traders call it differently, but the essence is the same - after this pattern appears, the market behaves in a predictable way, which allows you to make money from it in the future. Just sit and watch. I recommend taking screenshots of the screen. At one time, I accumulated a whole collection. The main thing is to do all this diligently. You’ll get an eyeful and learn to feel the market well. Highly recommend!

There are no dogmas on the market, so do not treat the perception of new information as recommendations that are 100% correct. You should have a healthy dose of skepticism.

Now you’ve read the books, spent a fair amount of time watching the market, and analyzed your screenshots. You have formed a personal opinion about trading on the stock exchange. Next, based on the information received, a decision-making system is built, which is the trader’s tool for making money on the stock exchange.

Exchange trading

Now the question arises of how much money is needed to start trading on the stock exchange. It depends on your preferences and how much time you are willing to devote to the market. You need to clearly understand that trading in the market involves risk. To begin with, I would recommend that you take your time putting a lot of money into your trading account. This can be done as you gain experience and develop your own trading style. It is very easy to part with money on the stock exchange, but saving and earning money is not so easy. Therefore, take your time and do everything consistently.

The market provides opportunities every day, except weekends and holidays. Beginners have a very serious problem - they constantly want to be in the market, they constantly think about missed opportunities. Is being produced. It is necessary to approach trading with a sober outlook and take deliberate actions, and not under the influence of emotions. With experience you will understand all this, but for now just listen to my advice - take your time.

Good day, dear readers! With you on HeatBeaver are Alexey Morozov and Dmitry Shaposhnikov. Today we will talk about stock trading - a risky, stressful, but very profitable job.

From the article you will learn:

• Where to start playing on the stock exchange on the Internet?
• How can a beginner learn to play the stock market correctly and win?
• What trading tools are suitable for beginner traders?

Let's get started!

Content

1. Features of playing on the stock exchange via the Internet
2. How to learn to play on the stock exchange - review of the TOP 3 trading tools
   • Instrument 1. Shares
   • Instrument 2. Futures
   • Tool 3. Currency
3. Where to start playing on the stock exchange - choosing the appropriate strategy
   • Option 1. Following the trend
     • Example
   • Option 3. Patterns
4. 5 simple steps on how to play on the stock exchange - instructions for dummies
   • Step 1. Choose a broker
   • Step 3. Open a personal account
   • Step 5. Start trading
5. How to play and win - useful tips for novice traders
   • Tip 1: Set your position size appropriately
   • Tip 2. Focus on exiting trades
   • Tip 3. Be aware of what is happening in the market
   • Tip 4: Always track your results
   • Tip 5. Write down your plans on paper
6. Conclusion

1. Features of playing on the stock exchange via the Internet

Previously, stock exchange players gathered in huge buildings and made trading transactions together. Now there is no need for this - you can sit at home in front of the monitor screen and calmly engage in trading.

Online trading on the stock market, Forex or commodity exchange allows you to use the latest analytics and keep abreast of any economic news. This is a definite advantage for both beginners and pros.

In addition, multifunctional tools are available only during transactions via the network. Price changes are displayed on charts; you can connect any graphical tools or indicators.

In the article “Forex for Beginners” we analyzed the MetaTrader4 trading platform - the best option for trading on the Internet. There are all existing tools, indicators and other useful things.

It is worth remembering, however, that trading online deprives us of the opportunity to see the most accurate currency quotes. Unscrupulous brokers can deceive clients by showing a market situation that is not entirely real on the chart.

Therefore, you should not cooperate with services that have a dubious reputation, so as not to cry later about lost money.

2. How to learn to play on the stock exchange - review of the TOP 3 trading tools

You can trade on the financial market with a variety of instruments, which we will pay attention to in the article “What is Forex - the Forex market.” Below we list the three simplest and most popular options.

Instrument 1. Shares

Shares are traded on the stock exchange, transactions are opened both offline (traders gather in the buildings of the London, Moscow, Tokyo and other stock exchanges) and via the Internet.

There is a group of shares (usually issued by new companies) that are worth only a few dollars. Naturally, to purchase them, a very small deposit is enough.

Shares are securities, the purchase of which means the investor contributes money to the total capital of the company. Shares can generate income in the form of dividends; they can be sold and make money on price changes.

However, most securities are very expensive. For example, the stock price of Facebook at the time of writing is $130, Berkshire Hathaway - Warren Buffett's company - $145, and so on.

You cannot trade stocks without knowing about the specific features of this instrument. For example, after paying dividends, a stock may lose 10-30% of its value.

Instrument 2. Futures

Futures also belong to the group of securities and are traded in the same market segment as stocks.

A futures is a security under the terms of which one party undertakes to transfer to another any commodity after a certain period of time at a fixed price.

For example, an oil producing company issued a futures contract to an enterprise that buys oil; according to its terms, in six months the buyer will receive a certain amount of black gold at an agreed price.

If, after the agreed period, the price of oil rises, the buyer will be able to sell the raw material at an increased rate and earn money. If the price falls, sales of purchased products will be unprofitable.

Expiration date is the point in time at which the futures contract is redeemed.

When we buy a futures contract, it does not mean that someone will supply us with oil, because on the expiration day our security on the exchange will “maturity”, we will either make money or lose money.

Tool 3. Currency

We trade currency pairs on the Forex market, which is not localized anywhere and is traded on the “interbank” market. To make transactions with currency, it is not at all necessary to have huge capital; $100-200 will be enough to get started.

Currency trading also has many of its own characteristics. For example, Forex works five days a week (Saturday and Sunday are days off), around the clock. There are many strategies for different time periods.

If in the securities or commodity market instruments need to be purchased with real money, then in Forex we trade using leverage. It allows you to open large transactions with a small deposit.

3. Where to start playing on the stock exchange - choose the appropriate strategy

There are a lot of trading strategies on the stock exchange, we have identified five main ones that can be successfully applied in any market - both when trading currencies, and when speculating in goods, indices, shares and others.

Option 1. Following the trend

The trend demonstrates the expectations of the crowd - the mass of traders playing on the stock exchange. Following the trend like a fish pilot following a shark is the smartest trading option.

Example

The logic of following a trend can be easily illustrated with an example. Let's imagine that we are at a train station, where there are a lot of people. Suddenly panic begins and the crowd rushes in some direction.

If we try to go against her, she will sweep us away and not notice it, it is much wiser to move in the same way as the bulk of the people.

An example of trend following is trading in an equidistant channel. As soon as the price breaks the previous top, we open a trade. The goal is to reach the upper boundary of the channel. To determine it, draw a straight line along the broken candle:

We open a position only when the candle that breaks through the level closes. If you open earlier, the candle may fall, leaving only a shadow, the signal will be false.

Example

Trading in the equidistant channel, we made a profit of 20% with $1,000 of initial capital, so the technique really works.

You can look for profitable deals on your own, or you can read the Analytics published on the websites of the largest brokerage firms.

Option 2. Investment strategy

Almost every broker (we wrote about the most popular companies in Forex Brokers) offers a PAMM account service - you can choose an object for investing money, invest and make a profit.

Profitability can be very different; in our opinion, you should not invest under promises of more than 30% income per month, because the higher the profit, the greater the risk.

Sometimes an investment strategy means opening transactions based on fundamental analysis - we enter the market by studying the financial situation and focusing on long-term trading (several weeks or months, sometimes years).

To understand the essence of fundamental analysis, watch the video:

This is not a job for beginners, since forming a complete understanding of the market is not an easy task.

Option 3. Patterns

Patterns are a great opportunity to earn money for beginners. They are very easy to find; no serious experience is required to correctly set Stop Loss and Take Profit.

A pattern is a figure formed by a price chart, which indicates an impending reversal or continuation of a trend.

There are many patterns, we will look at the two most popular. The first is Head and Shoulders. It will look like this:

The price reaches a maximum, and then the trend changes direction, forming two shoulders and a horizontal neck line. All you need to do is measure the distance from the head to the neck and put it down, determining the Take Profit point.

Another interesting pattern is the rectangle. We will present it schematically:

The price moved in a certain direction, then entered the corridor. When we break through the corridor, we enter into a trade. Having measured the distance between support and resistance, we set it aside from support and get the Take Profit line.

Features of pattern trading:

№	Tools	Characteristic
1	Timeframes	We trade on large time periods - at least an hour (H1)
2	Opening a deal	Not before closing the candle that broke through the level
3	Closing the deal	You can close part of the contract by setting breakeven
4	Professional level	For all market players
5	Efficiency	If the pattern is constructed correctly, very high
6	Using indicators	Not necessary

There are also double tops, triangles, flags, pennants and many other patterns that can be traded very profitably.

Option 4. Trend control strategy

There is a small group of strategies in which transactions are opened against the main trend. We do not recommend this area of ​​trading to beginners and we ourselves do not use it.

The bottom line is this: when the price of any financial instrument decreases, you need to open a buy deal, that is, counting on growth.

The trouble is that the market can move indefinitely in the chosen direction, this will lead to colossal losses, the risk of losing money by trading against the trend is simply huge.

Option 5. Playing with news

News trading is very profitable and simple at the same time, and does not require absolutely any knowledge. We have already discussed this technique in the article “Forex training from scratch”, we will not repeat it.

Important news does not come out every day, so in order to make stable and regular money on Forex, you need to master other trading techniques.

4. 5 simple steps on how to play on the stock exchange - instructions for dummies

To successfully trade on the stock exchange, you must follow a sequence of five simple steps outlined below.

Step 1. Choose a broker

There are a lot of brokerage firms with which you can cooperate in the trading process on the Internet - new companies appear almost every day. When choosing a broker, you need to pay attention to the training provided and trading conditions.

Finam is the most reliable company in the Russian Federation; it has already received our attention in previous articles. To trade with Finam you will need at least 30,000 rubles of capital, but in return the trader receives first-class training and reliability.

If you are planning not to play on the stock exchange, but rather to earn money, then Finam is the best option for starting a professional activity.

The brokerage firm Freedom Finance conducts regular seminars and webinars on the topic of trading currencies or stocks. The broker is good because it provides adequate conditions for both newcomers to the market and professionals.

Experienced traders who have been trading on the stock exchange for five or ten years are always ready to support new clients. Recently, it became possible to trade by phone - you call or order a call from a broker, give an order and continue to go about your business.

West Capital is focused on trading stocks. Specialists constantly analyze the market and provide clients with information about which securities are worth buying and which ones should be avoided. You can buy shares from West Capital not only for speculation, but also to earn money on dividends.

Information is obtained from the largest and most authoritative sources, so most traders have very high profitability, many reviews on the Internet prove this.

Opening Broker is a company that attracts a huge number of clients with the opportunity to trade with experts. It’s simple - after registration, you can choose a certain option for cooperation, for example, trading using the signals provided, and start opening transactions.

Of course, you can trade independently or entrust capital to experienced speculators through investment portfolios.

Some intermediary services offer new software; an example is the popular broker Kalita Finance.

It doesn’t hurt to take into account how long the company has been operating in the financial market and reviews from real traders. We have already talked about this in the material “Exchange Trading for Beginners”

Step 2. Register on the broker's website

Registration usually takes a few minutes: we indicate your full name, email and cell phone number. Subsequently, the manager of the selected company contacts us for advice.

Managers do not call clients at all brokerage firms, but mobile communications are the most convenient way to establish contacts.

You cannot trade immediately after registration - first you need to fund your trading account or receive a bonus to open trades.

Step 3. Open a personal account

Account requirements are always different; in some companies you can start trading even with a capital of a few cents. In most cases, you have to make a deposit of at least $100 to work.

Broker managers often persuade clients to immediately trade with real rubles or dollars, since intermediaries want to make money on spreads or commissions, but they need to stand their ground and not take risks.

Step 4. Download and install the trading terminal on your computer

A trading terminal is a platform through which transactions are opened on the financial market. It is downloaded from the website of the broker with whom we decide to cooperate.

Terminals installed from the websites of other brokerage firms will not work: you simply will not be able to log in.

Step 5. Start trading

Once basic training has been completed, the terminal has been mastered, and the trading strategy has been thoroughly studied, you can deposit real money into your account and begin serious trading.

The reason: if we inspire ourselves, we allow our emotions to control our reason, and “pessimism” creates the attitude “I have nothing to lose.” It relieves the brain of the need to digest emotional outbursts.

Below we list five useful tips for trading. Take note of them so that trading constantly brings you profit!

When opening each new trade, we set a Stop Loss, upon reaching which the position will be automatically closed. The maximum loss should not exceed 2% of capital.

If we lose 2% of our available money in a transaction, we have the right to 49 transactions in stock. If you have a working strategy, such a “safety cushion” will definitely lead to success.

In addition, if a large amount is lost, the trader ceases to be emotionally stable. Under stress, amateurs often open obviously losing positions and fly out of the market.

The strategy that a trader follows in the trading process should give clear instructions on where to enter the market and where it is better to exit it.

Closing a trading position does not always bring profit; sometimes it results in a loss. However, traders who do not close orders on time, hoping for a market reversal, usually fly out of it.

You can stop concentrating on closing a position only when breakeven is set - Stop Loss is set at the opening price. But even in this case, there are dangers, for example, gaps that occur after weekends.

Even if a trader does not enter trades based on news, he should review financial news and stay informed about upcoming economic events.

This will avoid unnecessary Stop Loss due to price movements in an unexpected direction, and will also reduce the number of false signals: on the eve of important events, the market is usually in a sideways trend, so it is better to ignore trend signals.

Sometimes it happens that a trader loses money on several trades in a row. Beginners in such a situation will continue to trade, increasing volumes and trying to “recoup”, professionals will stop and think.

The criterion for success is not a theoretical basis, but a practical result - if during the trading process there is a profit on the account, then good, if there is a loss, then you are moving in the wrong direction.

For training, a certain period in the market is randomly selected, the chart readings are redrawn, and the trader makes a decision in accordance with his strategy - what to do.

6. Conclusion

We reviewed several popular trading strategies in the financial market and highlighted a number of important recommendations for successful trading.

It should be remembered that the result will appear only with daily work; you need to trade every day for at least one or two hours.

If you liked this article, please express your opinion in the comments and rate the material. Good luck and financial prosperity online!

If you decide to start investing, imagine that you are going on a long car trip. And before you get behind the wheel, there are a number of important things you should consider.

Where are you going? What are your financial goals?

How long do you expect to be on the road? What is your investment horizon? Do you want profit tomorrow or are you willing to wait a few years?

What should you take with you on your trip? What would you like to invest in?

How much gasoline should I put in the tank? How much money can you allocate now and in the future to achieve your goals?

Will there be a stopover? Do you have short-term financial needs?

How long do you plan to stay at your destination? Will it be necessary to live only on investments in subsequent years or will there be additional income?

Until you have given yourself clear answers to these questions, you should not leave home. The probability of getting there, of course, remains, but the risk of getting stuck somewhere along the way is growing.

Similarly, investing does not tolerate negligence in planning. Accurate numbers in your initial plan are the key to a meaningful path later.

Like almost any long-term journey, investment requires initial capital. And there are several important points here. First, you should invest only a very small portion of your available cash in the stock market (for example, 20% of your savings). Secondly, there can be no question of “borrowing from friends, taking a loan from a bank, quickly earning 50% per annum on the market and being happy.” You cannot trade with borrowed money! Because risks are present in any case, and if you are weighed down by the need to return the initial capital to creditors, this will lead to psychological discomfort and a number of mistakes. Only for your own and only for a small part of your savings.

Step one. Education

Of course, it’s difficult to drive a car if you don’t know the rules of the road and it’s your first time behind the wheel. Therefore, we recommend starting with training. To get started, read any book on stock trading. Of course, you will not learn to trade from one book - no matter how brilliant it is - just as you will not learn to write poetry by reading the colorful and understandable “Primer”.

For our part, we can offer a large number of educational materials on a variety of topics in a section on our website. We can also offer beginners brief instructions on which topics are best to start mastering the investment craft. To do this, you can read a special review I am new to the stock market. Where to begin.

In addition to educational materials, if you wish, you can find a whole range of courses on the stock market for beginners. The beauty of technology is that today you don’t have to rush after work every day for evening in-person classes - you can take training online, often even for free. Here you can learn more about different stock market trading options.

Step two. Opening a demo account

During your first steps on the market, we recommend not to neglect demo trading. Even if the funds allow you to spend a significant amount on gaining experience and testing various strategies, there are a number of nuances that do not require material costs.

At a minimum, as part of educational trading, you will be able to study the trading terminal, see real orders, “get your teeth into”, and correct minor technical errors when testing trading ideas. And all this without risk and absolutely free.

Step three: Choose a broker and open a real account

Any time you feel you are ready for the real market, simply open an account with the broker of your choice, deposit money and start trading. However, do not rush to deposit the entire available amount: there is one important point that is often ignored and then paid dearly by beginners - psychology. It is this that often becomes a stumbling block for inexperienced investors. Just believe me: trading with real money is fundamentally different from trading with candy wrappers. You will inevitably encounter a number of psychological traps that will interfere with the implementation of your trading plans. To understand and overcome all psychological barriers, it is very wise to invest real money at the initial stage, but in small amounts. Even small losses will give you an idea of ​​what trading psychology is all about. In doing so, you will learn valuable lessons with virtually no threat to your account.

One of the most important steps is choosing a broker. Just as the choice of a car for a long trip affects the final success of the event, the choice of a broker determines the range of your options in the investment process. Choose according to parameters that you understand: ease of opening an account, commission size, initial investment amount, trading platforms, etc.

For example, BCS Broker offers beginner traders a tariff "BCS-Start", which allows you to test various company services and get acquainted with the advantages of the stock market. The tariff, for example, includes reduced commissions for the first 30 calendar days, as well as the possibility of personal consultations with the company’s stock trainers.

Opening an account today is very easy. As a rule, you don’t even need to visit the offices of brokerage companies to do this. A number of them offer to open an account online by simply attaching copies of the required documents to the application. Carefully study the relevant section on the website of the selected broker or contact by phone/Skype, etc.

When the account is opened, you need to decide on the software. Various companies offer their terminals for trading on the market. The most popular and functional program for work on the stock market - QUIK. There are versions of this program not only for a personal computer, but also for the web, and even iQUIK for iPhone and iPad. In any case, the broker you choose will be able to recommend a particular platform and even teach you how to use it.

Step four: Choose your strategy

At the beginning of the text, we planned a trip by car. However, it is never too late to change your mind and get to your desired destination by public transport - bus, plane, etc. You just need to buy a ticket. When it comes to investments, you can also refuse to manage your money yourself - just get on a bus like this (buy, for example, a mutual fund) and relax and watch out the window, waiting for them to take you to financial independence. The path can be winding, long, with a number of stops, and all decisions are made by the driver (manager). When you are driving a car, only you watch the road and choose the route, i.e. those financial instruments that will help you earn money, and the strategy for working with them.

As part of this approach, since 2018, BCS has been offering investors a unique innovative product - trading recommendations based on data from artificial intelligence, which are analyzed using a special software package Risk Assessment Innovative System (RAIS). To gain access to one of the most modern investment instruments, you must connect to a special tariff

Over time, you yourself will probably understand what you are missing in working on the stock exchange. You may need expert help (a broker can provide trading recommendations, and there are also a number of communities where you can

After trading on the stock exchange for some time, and not getting any results, the trader begins to rethink his trading, and goes deeper and deeper into the question: how to trade on the stock exchange correctly. In this article, we have collected methods and tips that, if followed, can help you trade more effectively on the stock exchange.

You will learn when it is better to enter and exit a trade. We'll show you how to properly manage your position to best protect yourself from excessive risk and maximize your trading profitability. All methods are universal and applicable to any exchange and any financial instruments. Study the information in this article and you can significantly improve your trading!

To follow the right approach in stock speculation, you need to be clear about your capabilities and be moderate in your expectations. Now we will tell you what we mean.

Decide how much time you are willing to devote to trading. Will you be able to follow the market throughout the day? Depending on the answer to these questions, choose the time frame on which you will trade. When making transactions, concentration on the process is necessary. Be aware of this.

If you work, we recommend trading in your free time from work and business, so that no one and nothing can distract you. Any interference can lead to unnecessary turmoil and nerves. Trading should be carried out in complete comfort. Trading already has enough irritants :)

Amount to trade

We are deeply convinced that for trading it is better to have a deposit that is at least minimally significant for you, but not too large. Traders call such amounts “comfortable” for trading. The potential loss of your deposit shouldn't have a huge impact on your finances. If you have too much money, you will be very nervous when making transactions. And in this case, trade will be very tense and tight.

Now it's time to talk about how to trade correctly to minimize losses and make profits. We will talk about trading methods and techniques.

Preparing for trading. Transaction planning

Before trading, review the market for trading instruments that have potential for movement. Take the entire list you are trading and go through it. It will help you calculate the possible price movement. Look for , which may foreshadow a continuation or reversal of the trend.

Oscillator divergences can also help you identify turning points in price movements. The RSI and MACD histogram indicators are quite suitable for searching for divergences. We described trading methods using them in the article: “” and in the article ““. Study them, all the tricks and methods of trading are described in detail there.

Learn to trade. Go ahead.

Graphic constructions will not be superfluous. Identify significant ones to take them into account.

Be sure to check the economic calendar to know what market statistics will be released for the day. It is located at.

Pay attention only to really important news, they are classified in the calendar by three bullish heads. You will not need the statistics themselves, as such. You only need to know time of their release. Because with a 99.9% probability, during the release of statistics, activity in the market will increase, and you will be ready for it. Make notes or set a reminder for the release time of important news in order to adjust your positions and orders if they are in the market at that moment.

Before the news comes out

• Completely close the deal.
• Close part of the transaction and leave a stop order for the remaining volume.
• Leave a trade with a stop order for reasonable level*.

* By reasonable level we mean the nearest local maximum or minimum. We talked about this in detail in the article ““. We recommend that you read it if you have not already done so.

An example of a position before a news release, when the price is close to the sell point

These measures are aimed at optimally minimizing the risk, because Risk is the only thing in trading that a trader can control.

Before important news comes out never remove or move stop orders away from the initial set level, as traders with little trading experience like to do. This can significantly worsen your trading position.

Let's look at an example of how price can behave after release news, and what we recommend doing in this situation. Let's assume that a trade is open, and important statistics will be released any minute.

After the news came out

There are four options for price movement after the release of statistics:

1. The price sharply rushes towards the open transaction, instantly bringing the position into profit:

In the case of this price behavior scenario, it is necessary to immediately reduce risks. This is done by moving the stop loss to at least the breakeven point.

2. The price moves sharply against the open position:

The clearest example of the benefits of stop losses. If a trader does not limit losses on transactions in any way, then his days in the market are numbered. It's only a matter of time. Always place your feet. The stop should not be in the head, as many people like to do, but in the terminal. We don't think you'll want to check these deplorable statistics on your money again.

3. The price sharply rushes towards the open transaction, but then just as sharply turns back and goes against:

Typically, this scenario occurs when several news items are released at the same time. Accordingly, the market reacts differently.

4. The price has changed slightly and remains +/- in the same place:

This situation occurs, but much less often than an active reaction to the news.

What to do if you have no open trades before the news

If important market statistics are expected and you plan to play them back, we recommend being very careful. And what you definitely shouldn’t do is submit pending orders. They can play a cruel joke on you. Let's show with an example:

A classic case when a spike knocked out an order, a position was opened, and the price sharply went back. Most often, as in this example, it is the outer candle that performs such tricks. Read to know the strategies, how to trade them and to be prepared.

A beginner will receive a big loss on such a deal, because... will probably not be able to place a stop loss, and will watch how the minus rapidly grows on the trading account. Therefore, we recommend not using deferred applications before the release of statistical data. But what to do if you really want to trade news?

To do this, you will have to switch to the minute timeframe. This is due to the fact that there will almost certainly be an opportunity where to attach a reasonable stop loss. And this is the most important thing, because... trading must be done with risk:

1. Let's switch to the minute timeframe.
2. We are waiting for the first minute candle to close (the market’s emotional reaction to the news will pass).
3. We open a trade and at the same time, instantly, set a stop loss for the nearest minimum/maximum, depending on the side of the trade opening.

All! This is the simplest and most correct way to trade on news using trading techniques.

Now there is an important note to make when trading before news, after news and the news itself.

If you are hit by a stop loss, then close the terminal and do not trade anymore. Most likely, the market will then be too complex and confusing to trade, and you may end up on tilt (overtrading) and incur significant losses.

Trading techniques and position management

An important link in trading, in addition to transaction planning, which was discussed above, is execution technique and position control. Let's look at an example of how the technique is implemented when opening a transaction, and further maintenance of the position.

A double bottom reversal pattern is formed on the price chart. For now this is an assumption, because... There is no resistance breakdown yet:

As soon as you discover a potential formation, you should immediately place pending orders to break through its support or resistance. In this example, to work out the pattern, a resistance breakdown is needed, so we place a pending buy order.

If the figure is processed, the deal will be opened. If not, then out of the market. Let's look at the developments:

The price breaks the resistance level of the figure and activates a buy order. It is advisable to immediately set a stop loss at a reasonable level, which will be at the nearest local minimum. You can also postpone the goal and wait for its fulfillment. You can read how to define goals in the article ““.

But we must not forget that figures are not a panacea, and there are times when they do not work. You should consider the figure not as a signal that must be fulfilled 100%, but as a consolidation, after which, Maybe, there will be an impulsive movement. Therefore, if the figure does not work, there is a stop loss for this, which will prevent you from losing more than planned.

After entering a trade and setting a stop loss, the trader’s primary task becomes: reducing risk and bringing the trade to breakeven. And only then - profit goals. Because if the price movement scenario is predicted correctly, profit will not be long in coming and will be a consequence of proper planning.

Position control algorithm:

1. Entering a trade and setting a stop loss at a reasonable level.
2. Moving the stop loss if the price moves towards opening a position.
3. Moving the stop loss to the break-even point of the position (to the opening price of the transaction).
4. Fixation of profit according to the target of the figure or in parts as the price moves.

Let's focus on the fourth point. Now we will explain why and how to do this. When you take profits as the price moves, you reduce transaction risks and free up volume for opening positions on other instruments. You can close it in parts, for example, at the breakdown of previous highs or lows, depending on whether the market is falling or growing.

It looks like this:

Please note that this is a very effective position management method that will help you trade the stock market as accurately as possible. Be sure to take it into your arsenal!

We could give many different examples, but the article is already too long :) If you want to learn more, then sign up for training. We will teach you many working methods and tricks.

If you have any questions about the material, welcome to the comments! We will be happy to answer you.

Good luck in trading!

Leading broker in the FOREX market -

Greetings, dear subscribers and guests of my blog! Today the word “promotion” (not to be confused with discounts in a hypermarket!) is familiar to almost every high school student. Hundreds of thousands of Russians trade them, traders and investors exchange experiences and give advice.

Here in Russia, a quarter of a century ago, everything was just beginning, and now many participants in those events receive a good increase in their pension in the form of dividends. Do you want to ensure a decent and active old age? Then it's time to figure out how to trade stocks on the stock exchange.

When Russian citizens received their first securities during voucher privatization, only a few knew how to choose the right shares, where they were traded, where to sell them later or, conversely, buy more, and how to learn to determine the right moment for buying and selling.

Since then, much has been simplified: securities have become uncertificated, they are traded via the Internet, and many training courses for beginners have appeared. Of course, courses are good, but the knowledge and experience of practitioners is no less useful.

Today I will try to dispel the fears of those of you who are almost ready to trade stocks, but are not quite sure that they will succeed. First, let's refresh our memory.

What are shares

A share, as is known, assigns to the owner a number of rights, which include the rights to part of the property (in case of liquidation) of the joint-stock company, as well as part of its profit in the form of dividends, to participate in shareholder meetings, and also (if there is a large block of shares ) to participate in the management of the company.

To become a shareholder, first of all, you need to purchase shares, which is documented in the form of an entry in the register of shareholders. There are several ways to solve this issue. The easiest and most convenient way is to become a client of a brokerage company.

An individual does not have direct access to exchange trading and the intermediation of companies licensed for this activity is the only opportunity to trade securities at market quotes.

Why do you need a broker?

Are transactions possible without a broker? Yes, they are possible. For example, two individuals may enter into a share purchase and sale agreement. It must contain the following information:

1. Type of shares (simple or registered).
2. Issuer, i.e. name of the joint stock company.
3. Nominal price of 1 Central Bank, i.e. price at the time of issue.
4. Number of papers in pieces.
5. Current price of 1 share.
6. The full amount of the transaction.

The right to own shares passes from one owner to another only after appropriate changes in the register of shareholders. To do this, an entry is made in the register about the transfer of ownership from the seller to the buyer.

A necessary condition is a transfer order from the seller to the registrar. In addition, additional annexes are drawn up containing the procedure for resolving possible disagreements. The buyer opens a personal account in the register where the shares will be accounted for, for which a special questionnaire is filled out.

Agree, this method is labor-intensive and can be used when the shares are not in circulation on the open market, or if the transaction is made at prices that differ greatly from market prices. In addition, trading without a broker is complicated by problems finding sellers and buyers.

It is also possible to purchase shares directly from the issuer (in case of an additional issue, after a buyback and in some other cases). But beginners do not need to delve into such subtleties, since such transactions are usually carried out in order to restructure blocks of securities between large shareholders.

So, if you decide to trade shares through a broker (the issue of choosing a broker is a separate topic), you must enter into an agreement with him for the provision of brokerage services.

The agreement specifies the rights and obligations of the parties when the broker executes client orders, as well as the procedure for processing transactions by the clearing house. After this, all that remains to be done is to download the program - a trading terminal and start trading.

But the question of stock selection remains: which ones to start with? Russian brokerage companies like, or, allow you to trade not only Russian stocks, but also American ones.

How to choose stocks

For example, the Finam company allows you to gain access to trading on the Moscow Exchange (until December 2011 MICEX) and on the New York Stock Exchange NYSE (colloquially “Nice”).

All transactions can be made from a single trading account. To make the right choice, it is useful to compare the returns of Russian and American stocks. Here's what's happening in the American information sector in 2017:

For comparison, TOP-3 among Russian ordinary shares included in the MICEX index.

However, there is a so-called second-tier shares, more risky, but potentially much more profitable:

What may be difficult for beginners is that these shares are less liquid, i.e. if necessary, they are more difficult to sell. The ratio of securities traded on the open market in Russia is shown in the diagram:

So still: which ones are better to trade? To do this, you need to analyze a number of factors:

• State of the industry to which the company belongs
• Growth potential of the stock (actual profitability, whether it is overvalued or undervalued)
• Dividend history of the company

For example, shares of Mechel JSC by the summer of 2014 fell more than 90 times relative to the January 2011 high. The company was in a severe crisis. But the competent work of management made it possible to save production and now the securities are trading 15 times higher than their minimum with great potential for further growth.

Need to keep in mind

People often ask how to trade stocks on Forex. Forex dealers themselves sometimes impose this service on beginners. But this is a lie. The instrument traded in such companies is called CFD (Contract For Difference).

This means that the trader does not buy shares, but makes money on the difference in quotes for a certain period. This is also possible, but with real stock trading, you become a shareholder with all the ensuing rights, and if something happens, the money will not be lost along with a shell company, of which there are many among Forex dealers.

Books are constantly being published on the topic of stocks, both classics and new ones. A good reference for beginners is:

And if you want to take an express course in technical market analysis, get acquainted with the popular QUIK trading terminal and prepare for real trading, watch this free video webinar from the guru of the Russian market - Dmitry Mikhnov. It will be interesting!

Afterword

In this article, my goal was not to teach you how to trade stocks. I just wanted to show that there is nothing complicated about it.

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