about investing in stocks, how to invest ...
One of the main principles of professional investment is the correct choice of the securities. You as a young investor about many things, such as pensions, until you can not worry. You have the whole life ahead of him, so postponement of funds for a rainy day should not be your primary goal. It sets you apart from your parents, who can't afford to go on a big risk.
The high degree of risk, of course, causes negative associations, especially if we are talking about money. However, such deals have their advantages: on the one hand, increases the probability of losing money, but on the other - there is an opportunity to significantly increase the size of the income. On the market there are plenty of shares, investments in which are accompanied by higher risk. Basically this paper small companies, whose quotations are often exposed to sharp fluctuations. If you have invested in such shares and the lost money, do not be upset: every investor from time to time suffers losses. Should treat this failure as the experiences, and then try again.
But the purchase of inexperienced investors shares with a high degree of risk is often considered "bad manners". So think, do you think it is better to provide this opportunity to the investors, who know the sense in the exchange trade.
The complete opposite of risky securities - shares of major companies, or «blue chips». They have less potential for growth, but the degree of risk is low, as the fluctuations in their prices are less significant.
Gaining experience
At this stage of life portfolio you need not so much to increase revenue, but for educational purposes. Believe it or not, but in the classroom little you will learn the basic principles of investment. The most effective way of learning - learning from their own experience. When you make the decision regarding the purchase or sale of shares, always think about what you are doing, and think about their actions when summarizing the results of the transaction. If you are in a position to explain how your operations impact on income, there is a high probability that the next time you manage to avoid mistakes and get a good profit.
The first experience of trading on the market does not always come easily. If investing basics you have learnt with great difficulty, remember that no one promised easy ways. It will take quite some time before you begin to be aware of the processes occurring on the Russian market. A huge amount of money, which earn the movers and shakers of wall street, to get them too, not just so, and after a long and painstaking work.
The young generation of investors have an advantage: it is better versed in financial matters. In addition, a lot of books, magazines, television programs, resources on the Internet, which can help not only a beginner, but also the experienced investor.
The first deals
The purchase of shares is a serious business, it is not necessary to treat this as a game. Once you make a deal, be sure to take time to analyze your actions. Do not be lazy to read the analytical materials and to compare them with their own considerations. If you have a lack of confidence in something, you can feel free to ask for advice from your broker. He must explain to you, what is happening with your money, as it is included in its responsibilities.
Remember that your goal should match the reality. If you have decided that you need a profit of 15%, then you should sit down and evaluate the possible results of the investment. If you don't reach your goal, try to find the reason. Can you make a mistake when selecting stocks? Or on the market have been recorded unforeseen fluctuations? If you will not analyze their operations, you might have a false idea about their successes.
Evaluate the possibility of potential growth of your portfolio. If you expect 10% of the income, but are composing a portfolio of a small number of different shares, it can turn out that to cover the fee you will need to gain exceeding 10%. Annoying, if you make a decent selection, but you can't make money on it just because of the fact that not thought about the costs. From this point of view is more profitable to invest in the shares of one company, rather than buy a small number of different securities.
The choice of the time for deals
When you have a package of shares, yielding a high income, to part with him, it can be extremely difficult. The sale of rising in price of the shares may not seem quite logical thing to do. The question arises: if the shares are still continuing to grow, then why do they sell? When the value of the shares will increase to your expected level, should make revaluation to sell or not to sell the shares. Beware of the «herd feelings,» when all will argue that it's worth the wait yet a little while, because it will earn an additional 0.2 dollar for each paper. When investing use the intellect, and not of strong will and self-control. If the prices of âçâèí÷èâàþòñÿ artificially, the probability of a sharp fall great. It is best to rely on the results of your analysis.
Only a few novice investors choose to perform the operations on the market of a good time. You need to remember about the existence of seasonal factors. On wall street there is an old saying: «In may sell, and then get lost». Essentially, this means that the shares of reach their limit up to the beginning of the summer. You ask why? Remember about the decline of activity in any professional environment, which typically occurs in the summer, some going on vacation, others are working on a simplified schedule with fewer working hours. On the stock market of buyers becomes less. This does not mean that in the summer you should refrain from the acquisition or storage of the shares. However, it is strongly recommended to exercise great caution when buying shares, when reduces the volume of transactions with them. This testifies to the fact that the other investors, working on wall street, lost interest in these securities.
Another busy period in the stock market - the fourth quarter from October to December. Why? Historically, that since October, organizations and private entrepreneurs are beginning to sell shares in order to direct them to the payment of taxes. This causes the volatility of the market.
How to protect against losses
Do not forget to take measures to safe the you against loss if the price of the stock will fall. For these purposes you can use the order «stop loss» order of the securities for sale in the best course, is not less than the specified). Thus, you can set the limit allowed by the damage caused by the slumping market. In practice operates a good rule of thumb: limit potential losses in the event of a fall in the price 15% below the cost of acquisition of the shares. Why on 15%? Because for the stock market is characterized by instability: even the most reliable shares may for two days fall by 5% or 10% due to unfavorable market situation. A reduction of 15% is already a reason for sale
