You will need
- – passport;
- – free cash;
- – personal computer;
- – stock trading software.
Assess your financial condition. To buy shares, you need to have a certain amount that you can afford to lose without compromising the family budget. To open a brokerage account you will need a down payment, the size of which can amount to several tens of thousands of rubles. And to create a reliable diversified portfolio of investments, it will take a much more impressive amount.
Identify those industries in which you are most versed. You should not invest in securities of companies whose activities you have no idea.
Get initial securities trading skills by assimilating terminology and sorting out basic concepts. Today you can find many popular trader manuals available in electronic form.
Choose the right equities trading strategy for yourself. Remember that it is possible to make a profit not only when the value of shares increases, but also when they collapse the market. Those who play on the increase in value are called “bulls” in professional jargon, and those who build their strategy on the fall of the market – “bears”. By competently combining both strategies, you will be able to obtain stable income in any development of the market situation.
Determine the term for which you will purchase shares. Distinguish long-term and speculative securities transactions. In the first case, you buy shares for more than a year and keep them calculated to increase the market value of the assets. Speculative trading is more dynamic and riskier. Sale and purchase deals here can be made for only a few days or even hours.
Select a broker, that is, a company that provides intermediary services to individuals in securities transactions. The right choice of broker is the key to success. Focus on the company’s established business reputation, customer feedback and ratings conducted by independent experts. Take into account when choosing the amount of commissions you will have to pay for mediation.
Conclude a contract for the provision of brokerage services. After that, the broker will open a personal account to which you can transfer the amount necessary to purchase the shares of your chosen company. The procedure for making documentation in a solid institution can take several days.
Install the special software required for bidding on your personal computer. The distribution of the trading platform is usually received by the client when issuing a package of documents. The software includes a personal login and password, which you can change later. If necessary, you can also set up a digital signature program on your computer to guarantee the security of your trading account.
After studying the features of the trading system proceed to purchase shares. As a rule, the client can choose his own shares to buy, in what quantity and on what terms. All transactions at the same time the brokerage company will take into account automatically by transferring to your personal account funds received during successful transactions.
If active transactions with shares do not interest you, but you only want to become a holder of securities in the calculation of increasing their exchange value, give written instruction to the broker to buy certain shares for you, specifying their quantity, denomination and other data that are material to the transaction. The brokerage company itself will purchase shares at your request.