In order to buy shares of Russian and foreign companies, you need to have a brokerage account – this is your personal account, which you need to open at the brokerage platform.
Through a broker you will buy shares on the Moscow or St. Petersburg Exchange. It is almost impossible to do this, because only brokers have access to trading on the exchange.
Therefore, choosing a broker is one of the main issues when investing in stocks.
The main condition for your cooperation with the selected broker is that he has a state license and an activity permit. Also look up its service rates. If at first there is not a lot of money, it is better to choose the tariff cheaper so that there are small fees for account maintenance and for each transaction. Also an important factor in choosing a broker is the threshold of opening an account. Some sites start to work with significant amounts, and there are such that even with one thousand rubles you can open an account there.
And when opening an account, note that there can be two types:
– a simple brokerage account;
– an individual investment account (IIS).
The difference is that from an individual investment account you can receive tax deductions — 13%. These deductions are made after the expiration of three years, until this term money cannot be withdrawn from the account.
So if you plan to withdraw money within three years — it’s better to open a regular brokerage account.
In the account you need to put money, and then you already buy shares. This is done here on the broker’s website. Shares are not paper, but electronic, that is, in the hands of them cannot be held.
And this is where the most interesting begins. We’re starting to wonder: which stocks to choose? On hearing the largest and most famous companies that should, as it seems, guarantee high dividends to their shareholders.
One can, of course, buy a few shares of these companies. However, one of the most important conditions for not “warming up” while investing in stocks is diversification. That is, the division of funds by different companies. So look at different companies from those sectors of the economy that are currently steadily developing.
It’s the same as “don’t put all your eggs in one basket”.
But that’s not all. Experienced investors advise diversifying on several grounds. That is, divide your money into several parts. And buy shares not only of Russian companies, but also of foreign companies. For this purpose, you need access to the St. Petersburg Stock Exchange — it is it that trades such shares.
So in your investment portfolio will diversify by currencies. And if “subsidise” the ruble will save the dollar, and vice versa.
Also experienced investors are advised to buy not only stocks, but also bonds. They give not such high profit, but stable. And shares will constantly “jump”, and one day I can fall so much in price that then will recover for a long time. And dividends can also go down very much, so you won’t get any profit in that time.
And the fluctuation in stock prices needs to be monitored – to watch the dynamics of growth or falling prices at least once a week. And if you see that the price has started to fall strongly — the stock is better to sell and buy others.
Although you can choose a different style of investing — long-term. So do investors who live on the principle of “bought and forgot”. Well, that’s also an option.