How to trade on the stock exchange for beginners

Today the popularity of the stock exchange is constantly growing and attracting more and more people. Technically, the trading process is straightforward. Internet access, an exchange terminal program and an agreement with a broker are required. Observing the movement of stock prices, you need to make a buy or sell. However, in order to make a profit, it is important to gain the necessary knowledge, analyze the market situation, show patience and train skills.

Exchange and trade

The Exchange is a participant in the market mechanisms and ensures the operation of the main instruments in the field of finance: currency, commodities, securities, etc. Trades are held regularly. They are organized on a real platform (financial centers) or on the Internet - virtually. Their main features include:

Trades are carried out in the conditions of publicity, open access and free pricing. Operations take place without government influence, but in accordance with the rules of the law.
The exchange's income is a commission from transactions.
Trading deals provide an opportunity to make money for experienced traders and beginners.
Exchange transactions are made according to uniform requirements for conditions and securities, currencies, etc. Trades are carried out through counter offers of participants.

Trading on the stock exchange is the execution of transactions of purchase and sale of securities - stocks, bonds. The stock exchange provides the establishment of the equilibrium price, intermediary services for the withdrawal of funds, the guarantee of the execution of transactions. Dispute resolution also takes place on the site.

Procedure for starting trading

Considering the topic of how to trade on the stock exchange for beginners, it is important to determine the implementation of a number of necessary steps.

Choosing a broker and concluding a contract. An individual cannot independently participate in the auction. Transactions are made only through an intermediary. The broker provides an entrance to the site through the trading program, deducts taxes, keeps accounting records. For services, the broker takes a percentage of each transaction. Communication with the broker is via the Internet, no office visit is required.
Commission size. Broker services can be paid for by both a commission and other deductions. It all depends on the conditions. The size of the commission always affects the price of your trades. Small commissions make it possible to conclude short trades and get big profits.
Exchange terminal. It is important to choose the right program. They differ in the set of services and the reliability of network access. The terminal should provide viewing of current stock prices, drawing of the quotation schedule, announcement of orders for sale, purchase. A demo version is provided first. After selection, the terminal is installed on the computer.
Determination of the strategy on the exchange. Trading on the stock exchange for beginners is suitable for a bullish strategy. It is necessary to act based on the specific situation and move with the market. You do not need to trade against the market, when there is a fall in securities, their do not buy until their price reaches a reversal... Placing orders, opening or closing positions is best done based on data received on the network.
Loss control. If the price movement did not coincide with your forecasts, do not wait for its change. This can lead to zeroing of the account. You need to set a stop-loss limit on a position in the terminal. As soon as the price reaches this line, the position itself will close with less losses.

Before starting trading, you must register in your personal account. It is worth practicing on a demo account with at least $ 1,000. Having chosen a strategy, you need to use it within a month. With positive results, you can open an account with your own money, which is done in a few clicks.

How to choose the right broker

Only through an intermediary is exchange trading for beginners provided. There are many criteria for choosing a broker on the trading floor. There are selection options suitable for beginners.

Free learning materials, market analyzes and conditions for selecting a strategy.
Ability to work on proven platforms, relevant for both professionals and beginners. Today MetaTrader with MT4 and MT5 versions is recognized as the best.
Availability of promotions and various bonuses. Tempting offers are not always available as the broker promises. Often, in order to take advantage of a bonus, you need to make several transactions or have a specific amount on your account.
Using deposit bonuses. They are provided when replenishing a real account. However, the broker can freeze the bonus along with the client's money. To withdraw money, you will have to fulfill a number of conditions.
The company has a license, the place of registration of the broker and the legality of his work... Do not trust the reviews, not all opinions are true or written by professional traders.

Before starting a trade, it is better to have a good understanding of the market and the main companies operating in it. Taking the time to choose a broker will help you not to lose your invested money.

How to trade for a beginner

Trading stocks for beginners should open with the study of useful materials, advice from experienced traders. The development of the economy affects the continued relevance of the stock exchange. Therefore, traders are constantly improving their skills and using new strategies.

Opening a demo account and testing the first knowledge gained... You should immediately use the training materials that are offered by the selected company.
Study of literature. Reading books is cheaper than video lessons and classes with teachers on the Internet. The books contain more useful information that you can return to periodically. Reading the articles is helpful for getting up-to-date information and good advice. It is important to improve your knowledge and skills in the field of technical and fundamental analysis.
Help of an experienced trader. A real person who has achieved success on the stock exchange will best be able to explain the rules of trading, market analysis, use of a strategy, and suggest good sources for training. If there are no acquaintances, it is worth studying the experience of famous people who are successful in exchange trading.
Tracking market trends. It is important to study the analytics posted on the broker's website, read the opinions of experienced traders. Viewing specialized channels and news in the field of economics will help to form a correct understanding of the market.
Using paid subscriptions. Obtaining the opinion of professionals is important for determining a trading strategy and training. He can always be compared with his own, as well as with the theoretical knowledge received. You must always be aware of the major economic news in the world.
Seminars and lessons. Classes contribute to understanding the market. The workshop usually focuses on one aspect of investing. Seminars can be paid or free.
Trade start... It is better for a beginner not to use large deposits. It is enough to try to open an order for a small amount to understand how the program works. The combination of learning and real trading will help you learn to trade faster.

Buying shares

Trading in securities requires the study and analysis of the companies whose shares will be used on the exchange. To make a profit and not lose a deposit, you need to study about a hundred large companies, their development and specifics. As a result, it is necessary to select no more than ten.

Selected firms are offered an offer to purchase their assets. If about 3 companies respond to the offer, it means that the price you have given for the shares is overstated and does not correspond to their real position on the market. You need to offer a price that is suitable for no more than two businesses. After agreeing to choose only one company, taking into account all the details. It is advisable to work with a company whose field of activity is the most understandable and close.

A beginner should start trading the assets of large companies. Their shares are highly liquid. For such firms, it is easy to find the latest news and information for analysis. If the firm is located in the United States, information about its shares can be found on the Internet resource of the Securities and Exchange Commission. Also on the network there is a special service of companies that unite them according to various criteria. You need to install a filter for the stock. The entrance to the service is paid with a subscription.

Major Stock Exchange Brokers

New organizations that provide intermediary services on the stock exchange are constantly appearing on the network. The choice of a broker should be done by comparing several companies. First, it is worth considering popular firms.

Transactions on the Moscow Exchange

The Moscow Exchange ranks first in the country in terms of trade turnover and the number of participants. It is included in the list of the 20 largest venues in the world. The exchange uses the main trading instruments:

Mutual funds;
securities;
futures;
currency;
precious metals, etc.

Transactions go through trading terminals. Data security is ensured by electronic keys used for confirmation.

To start trading, you need to do the following:

Choosing a service tariff from the options offered by the brokerage company.
Conclusion of an agreement with an intermediary through his website or in the office.
Selecting software and installing it on a PC or tablet. The most popular are QUIK and MetaTrader.
Replenishment of a trading account.

Stock Exchange Is an important player in the modern economy. It enables almost anyone to make good money. It all depends on the readiness to study the features of the global financial system, analyze the processes taking place in the economy, and correctly apply them in trading. Only constant improvement of your knowledge and skills will help you become a real professional in the stock market.