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Many people ask questions about how to make money on stocks and how to trade Forex. There are several methods worth mentioning.
This is a classic way to make money on stocks. You buy shares, and the company gives you a share of the profits – dividends. But there are some nuances. To receive dividends from the company, you need to buy shares in time, before the register of shareholders is created.
Also, in many companies, dividend payments are not regular. There is a specific schedule:
However, this is not a general rule, and different companies have their own rules.
Speculation is now a less popular term, now this method is called trading. The essence of trading is that the shareholder earns money on shares due to market fluctuations. An entrepreneur buys shares when they are at their lowest price and then sells them when the stock rises. The market is constantly experiencing minimal fluctuations on which traders earn.
At first glance, it looks simple, but without knowledge of the economy, the market can easily burn out.
To have good income, you need to devote a lot of time to this occupation, so this should be the main occupation. You also need to understand that this is a risky job, because you can either make money or lose it, because there is no exact guarantee of earnings.
This type of income involves minimal risk. The bottom line is that you invest in stocks for the long term (don’t intend to sell before one year). But in order to feel the profits, you need to invest a large amount of money, in thousands or even millions.
Long-term investments are not suitable for those people who want to earn big money here and now. This type of income is more suitable for those who are looking for passive income and do not know how to use their assets.
Let’s take a closer look at how to buy shares.
A broker is a person who is an intermediary between the exchange and the buyer. Previously, brokers were only people, but in the digital age, this can simply be done by a program. Thanks to this, the buyer can make a deal at any time, anywhere. Brokerage companies that have special licences for trading on the exchange market are now popular.
You can also buy yourself through intermediaries or buy shares from other investors.
You can also invest through mutual funds. In this case, the fund itself manages the portfolio, and the shareholder only receives dividends and pays commissions.
How to invest in shares? To properly invest in stocks, you need to be informationally prepared. You must know everything about the market in which you operate. If you want to buy shares of a certain company, you must know not only documentary information, but also general information – about the company, what values it has, its office, its physical location. All factors are very important and must be taken into account.
Buy stocks for a long time (10 years), choose companies that will definitely last until then. Buy shares of various companies to minimize risks. Use the advice of brokers and experts.
Investing all your money in stocks is not a good idea. To invest, you must have a financial cushion and a lot of capital.
Such tips will help beginners better navigate the market and minimize losses in trading. After all, no one wants to lose their budget at the very beginning of their investment journey.
