Investing in the stock

Investing in the stock market: features and benefits

We already wrote about investing in stocks generally, in an article to Buy Stocks? Today we consider the question of investment in stocks in more detail and consistently.
One of the main advantages of independent work at the stock exchange manager "not proest" your money. You're doing it yourself
Thus, the main features of the stock market from the point of view of a private investor:
High dynamic, constantly changing stock prices.
The greatest freedom in capital management (compared, for example, mutual funds)
The high degree of regulatory law - trade stocks for a couple of centuries of traditional appearance and legislation contains too many holes, through which brokers may deceive the customer.
The possibility of self-selection of investment strategies - short-term, long-term, medium-term.
These features can be seen as a positive or a negative way, for example, dynamics can both help to make a lot of money in stocks, as well as lead to financial losses.
- Freedom is great, but it also implies responsibility, and the high zareglamentirovannost, though, and provides protection, can lead to unnecessary delays and so on.
However, quite a seasoned investor, owning skills of technical and fundamental analysis, the desire and the time to understand the situation on the market as a whole and on individual companies can pay all these ambiguous features in the clear advantages.
More to the point - to get high (on the Russian market of 40% per annum is not new, even for not very active investors) income. And it can be stable - with proper risk assessment.
Another noticeable feature - trade stocks fairly serious business and requires a fairly substantial funds - now the majority of brokers to lower the threshold to 50 000, but it is still worthwhile to invest a large sum - or earnings can simply eat a commission and related expenses, and in addition - loss time.
To begin with optimal, perhaps, the amount of 150-200 thousand.
For investment in shares is also required more knowledge and skills in comparison to other financial instruments.
Conclusion: Investing in stocks - the best choice for a person who has a rather large sum of money and is willing to take the time to learn how to trade stocks on a professional level.



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