How to start trading in the stock market

Trade on the stock exchange is technically very simple process. You must have an Internet connected computer with the software installed - the stock exchange terminal. Observe the change in the prices of shares in it and at some point to decide what to do – sell securities or buy. Then after waiting a while, it might be good to make this decision, and the difference between the purchase and on the contrary, after deduction of all commissions, and you will profit.

You will need

• The contract with the broker, the exchange terminal, a computer connected to the Internet

Instruction

1. Select a broker and sign a contract with him. This is due to the fact that a person can not directly send requests to the exchange. There are special organizations that brokers who provide them the opportunity to take part in the stock exchange. It provides you with a trading terminal program to work on the stock exchange, keeps the accounts, and reduces income tax. You pay the broker a Commission, a small share of turnover.
2. Determine the size of the Commission you want to pay him. In addition to her other contributions, it all depends on the cost of services of the broker. As the Commission is taken from your turnover, its size will affect the price of the transaction. A smaller Board allows you to play short trades, thus providing more opportunities to increase profits.
3. Select the exchange terminal. This is an important moment at the start of trading on the exchange. They are of different types and different connections and a set of services. But they all give the opportunity to look at current stock prices, draw charts, to declare the application for the purchase or sale. First you offer demo access terminal that will give you the opportunity to visually identify features of the program. Communication with the broker is via the Internet, visit the office is not necessary.
4. Install terminal on your computer. Then there are two questions – what time to buy and when to sell shares. There are several strategies, one of them is to play only on the rise. This has both pluses and minuses. To the positive side of this strategy is that you always know your further move to the downside – the inability to flexibly enter into the bidding process. But for a beginner this is the preferred tactic. When trading you should consider that price no one really knows for sure, unless of course, you are the Minister of Finance. Therefore it is necessary to proceed from the current situation, it is advisable not to trade against the market, i.e. if the securities fall, they should not "pick up" until they fall to the "bottom".
5. Follow the loss. Since you are just starting Forex trading, it is particularly important that you still will be difficult psychologically to realize losses. Buying stocks, are you waiting for profits, and if the trend moved in your direction, can hard not to close an unprofitable position, thus stupidly to observe increasing losses that destroy your account. In order to avoid such a scenario, one should consider the price level where the position has to be closed in the case when the price against you. Use stop loss (loss limitation) in the terminal. The position in this case will be closed automatically when the price reaches the level specified in the application. Losses should be cut ruthlessly.