How to win on the exchange?
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Trading on the stock exchange is not entirely trueis called a "game". The fact is that there are many nuances in the work of this organization, without knowing which, it is practically impossible to make a profit. About what the stock market is, you can find out in our article What is the stock exchange. And in this article we will consider how to participate in exchange trades and start to profit from it.
How to win money on the exchange
Choosing a Broker
People who earn money on the stock exchange are called traders, you can read more about this specialty in the article How to become a trader.
To earn with the help of trading, you needto register with the broker. A broker is an intermediary between traders and the stock exchange. It accepts the funds of bidders on a deposit, provides an opportunity to vote (make bets), and also pays a reward. From honesty and decency of the broker depends largely on the success of your work.
Signs of a Good Broker
- The first and most important is the recommendations of othersparticipants. With the development of the Internet, most trades have moved to its open spaces, and the presence of a large number of negative reviews should warn you against cooperation with this firm.
- Term of the work. Organizations that have long and successfully engaged in exchange trades, cherish their reputation and, most certainly, will try to fulfill their duties while working with you.
- Availability of educational programs. A good plus, but remember, the exchange is not an employer, your success is not always beneficial to it, so nobody will devote you to all the secrets of skill.
Choice of strategy
After you decide with which organizationwill cooperate, begin to master the theory. Do not hurry to start trading in real money, study the features of market behavior, tactics and principles of trading. Train to anticipate the behavior of the exchange, and only when your predictions will be accurate by 90% or more, start making money.
On how to trade in securities, you can learn from the article How to sell shares | On what exchanges and how the sale is carried out.
5 errors preventing winning
- Haste. Do not try to win without having a knowledge base about working on the stock exchange. Remember that you are resisting the greatest financial minds in the world, because here money is not taken from the air, and if someone wins, then someone necessarily loses.
- Absence of a system. After choosing the appropriate option, always follow the rules developed for this strategy. Do not rely on luck.
- Lack of risk management. Be prepared for the fact that you will not always win, so read the rules for controlling losses. They will help you in general to remain in the black.
- Exit the transaction with a small profit. It is psychologically difficult to continue trading, seeing that the schedule for changing the indicators brought you some money. However, be prepared to strictly follow the decision, wait until the automatic closing of the deal, and then you will have a chance to get a bigger win.
- Lack of self-control. It's not for nothing that all traders are training stress resistance, as with calculated moves you may not have the strength to win a really large sum.
Knowing what mistakes to avoid, you will conduct your bidding so that you can come to win.
About various ways of replenishment of the capital you can read in the article How to raise money | Shares or a game on the stock exchange.