How and how much can you earn on the stock exchange (stock, currency, commodity) without special knowledge and experience?

If we analyze the statistics of search queries on Google, it will be clear that many people are looking for in the search engines: "how to make money on the stock exchange newcomer house", "how to make money on the stock exchange newcomer", "how to start making money on the stock exchange newcomer" and so on.

Users actively register accounts with various brokers and dealing centers, open trading accounts and Deposit funds on them. However, such action results in an increase in level of savings and, more rarely, a novice are able to withdraw their funds and profits earned in trading.

Therefore, sooner or later all novice traders have a question: "is it really possible to make money on the stock exchange?". The answers to this and other questions can be found in this article.

Is it possible to make a newcomer on the exchange

Every professional was once a beginner, so the answer is obvious – a beginner can make money on the stock exchange.

An interesting fact is that beginners often earn a greater percentage on the stock exchange than professional traders. And it's not about luck. Newcomers come to the market with relatively small deposits ($200 – 1000). They can afford high risks (for example, to open a deal at 20% of the depot) and earn 50% of the profit per day.

Professional traders usually have larger amounts on Deposit. Agree that if you had $2 million in your account, you would be extremely careful.

As a rule, success does not come immediately, but after a while, when a person acquires some knowledge and experience, as a result, the trader ceases to be a beginner.

However, answering the question – is it really possible for a beginner to make money on the exchange from scratch, it should be noted that this is quite possible if he uses methods unrelated to his own trade.

Alternative methods of income generation include:

• Automatic copying of other traders ' trades;
• Participation in investment products (for example, PAMM accounts and other types of transfer of funds in trust management);
• Investing in ETF funds.

Copying trades of experienced traders is a good way to earn a beginner. It is similar to investing in PAMM accounts, but in this case the user does not transfer funds anywhere, but sets up automatic copying of transactions of the selected trader.

Advantages of this method:

• The opportunity to learn trade according to the signals;
• Ability to use trading solutions of an experienced trader;
• Funds remain in your account, they do not need to be transferred to another account;
• Trade control – if you don't like open trades, you can close them yourself.

When transferring funds to trust management, the investor transfers his funds to an experienced trader who manages them in order to make a profit for the investor. The managing trader charges a Commission from the profit for his services. As a rule, the accounts to which investors transfer funds are called PAMM accounts.

Of course, the above methods will not bring the profit that you would get if you effectively organized trading, however, these methods will help to create a start-up capital, form certain skills and instill the necessary knowledge about trading in the markets.

How much can a beginner earn on the exchange

On the question of how much you can earn on the stock exchange novice, it is difficult to give a definite answer. Much depends on the size of the initial capital and the aggressiveness of the trade. Therefore, the yield is usually indicated in %.

It is impossible not to agree with this statement, as a trader, constantly thinking about profit, loses the sense of the market.

And, nevertheless, it is the numbers that attract new and new participants to the exchange.

Consider successful trading on the Moscow exchange. The average daily volatility on this exchange is 0.5 – 2%. When trading within a day and working out 1/3 of all movements, the trader will work out 0.3 – 0.6% of the market changes and, consequently, the invested capital, while part of the transactions will be closed with a small loss. From this we can conclude that the yield of the trader will be about 0.15 – 0.3% per day. Accordingly, the trader will be able to earn about 6% per month. Taking into account the reinvestment for 3 years, you can achieve the following results (for example, take 1 000 rubles. – initial payment, 6% - income, plus reinvestment):

1	1 060	1	2 132,85	1	4 291,63
2	1 123,6	2	2 260,82	2	4 549,12
3	1 191,01	3	2 396,46	3	4 822,06
4	1 262,47	4	2 540,24	4	5 111,38
5	1 338,21	5	2 692,65	5	5 418,06
6	1 418,5	6	2 854,2	6	5 743,14
7	1 503,61	7	3 025,45	7	6 087,72
8	1 593,82	8	3 206,97	8	6 452,98
9	1 689,44	9	3 399,38	9	6 840,15
10	1 790,8	10	3 603,34	10	7 250,55
11	1 898,24	11	3 818,54	11	7 685,58
12	2 012,13	12	4 048,71	12	8 146,71

 

Based on practice, the profit on one transaction can be much higher.

How to start earning on the stock exchange novice from home

Technology has radically changed the exchange trade. 40 years ago, trading on the stock exchange was unthinkable without buying a place on the stock exchange. Today, exchange trading takes place via the Internet.

Brokers currently provide access to various types of trading platforms:

• Stock and commodity markets (Moscow, new York stock and commodity exchanges);
•  

Some brokers provide an opportunity to trade not only stock, but also derivative assets. Currently, futures and options trading is gaining popularity.

Currently, brokers provide special software for trading, which can be divided into 3 types:

1. Trading through the broker's WEB-interface, which does not require installation on the trader's computer.
2. Trading through the trading terminal, which is installed on the personal computer of the trader.
3. Trading through a special application that is installed on the trader's smartphone.

To start trading, you need to register with a broker. Registration includes filling out a questionnaire, where passport data, phone number and e-mail address are specified. Most brokers provide the opportunity to issue all through the Internet, without visiting the office.

After the application form is completed, you will receive a link or a code to confirm your registration to your e-mail address or phone number. After confirming your registration, you will have access to your personal account.

Each broker has a different procedure for opening a brokerage account or IIA, but in General, the procedures are similar.

After opening a brokerage account, you will be asked to Fund it to start trading. After depositing, you can start trading.

Stock market

The stock market is the securities market. Securities are shares and bonds traded on the stock exchange.

Today, there are many securities markets, all of them form a network of stock exchanges.

The most famous stock exchanges:

• NASDAQ;
• NYSE (new York stock exchange);
• Shanghai stock exchange;
• Tokyo stock exchange;
• Korea stock exchange;
• London stock exchange;
• Moscow exchange.

Shares of not all companies are listed, but only those that have been tested for reliability.

The securities of such well-known companies as Apple, Boeing, Coca-Cola, Sberbank, Rosneft, Gazprom are represented on the stock exchanges and this is only part of the potential investment.

Trading on the stock markets is one of the most popular types of trading, so it will be useful for a novice trader to start acquaintance with securities trading.

A big plus in this case will be the opportunity to use a large number of available literature, trading strategies and techniques developed and tested by years of experience.

Derivative

Direvatives are a derivative financial instrument – a contract under which the parties are entitled or obligated to perform certain actions in relation to a particular asset.

Derivative considered to be the most profitable way of earning on the exchanges. The markets in which such transactions take place are called futures markets. For example, futures on indices, stocks, currencies, etc.

The most profitable are binary options. They allow you to earn more than 70% of profit on each share, regardless of how the price of the asset changes.

To make a profit on binary options, you must select the term of the transaction and specify the condition of the option up or DOWN. In other words, whether the price of the asset will go below or above the closing of the transaction. If your condition is met, you will make a profit instantly.

The term of the transaction you can choose any: from 1 minute to a month.

Raw material market

On commodity, commodity exchanges are sold, as a rule, such goods as cotton, gas, oil, corn, sugar, beans, coffee, coal, ferrous and non-ferrous metals and many other goods.

Currently, on average, about 100 different commodity names are traded on the exchange.

Commodity exchanges are one of the oldest types of trading platforms.

Commodity markets are not only economic but also strategic.

Currently, there are many commodity exchanges. The most famous of them:

• Singapore commodity exchange;
• Chicago Mercantile Exchange;
• New York Mercantile exchange;
• Tokyo commodity exchange.

Trade in raw materials and goods has its own characteristics. Pricing is influenced by many factors: weather conditions in the region of raw materials extraction, military operations, and much more.

Not all traders trade raw materials. There are commodity traders specializing in this type of investment.

A novice trader who wants to start his activity with trading goods and raw materials can be recommended to study specialized literature describing the specifics of this sphere.

Currency market

Almost all operations on purchase and sale of currency are carried out in the Forex market.

Features of this market are:

• Huge volatility and liquidity;
• Opening positions not for any particular currency, but using the currency pair "EUR/USD".

Major currency pairs traded on the Forex market:

• EUR/USD;
• CHF/USD;
• GBR/USD;
• JPY/USD;
• USD/CAD;
• EUR/CHF;
• EUR/JPY.

Trading in the foreign exchange market is conducted in large lots, so if a novice trader does not have enough money in the account, he will have to resort to leverage in the amount of 1:100 or 1:1000. The use of such a shoulder requires certain skills.

Everything is bought and sold online

Today you can start trading from the comfort of your home. You just need to register with a broker, open an account, replenish it and you can start trading.

Currently, trading is becoming more accessible to a wide range of people and this can change a lot.

Tips for beginners

Before giving any advice, I would like to note that not everyone will be able to conduct successful trading and engage in trading.

A trader is not just a person who has read several books about investments and trading and started successful trading. To become a trader or investor, you need to have a predisposition to it. Often trading starts only because of the money, but in fact these people are in the soul of artists, psychologists, writers... but not traders. Each has his own way.

The trading system is the most important concept in trading, it includes not only knowledge, but also the trader (his emotions, character, feelings – all this has a significant impact on decision-making). It is therefore not suited to all trading and, moreover, does not fit all trading advice.

However, here are some tips for a newbie who just opened a brokerage account:

• Choose only a reliable broker;
• Try to abstract from thoughts about profit, think about saving your Deposit;
• Try to use the smallest trading leverage (large trading shoulders require certain knowledge);
• Constantly develop, read literature, increasing your level of knowledge;
• Do not use poorly understood assets. Choose the most understandable assets and trade them.

Popular bugs

All the rookie mistakes can be divided into 2 categories:

1. Technical
2. Psychological.

The first group of errors include:

• Trading without stop orders. There is one important rule in trading – open a position, set Stop Loss;
• Trading against the trend. Abroad, traders clearly follow the rule: "Trend is my friend", the meaning of which is to trade only in the direction of the trend movement;
• Lack of money management. Competent money management will save your Deposit even in the most critical situation;
• No "diary". It is important to keep a trader's diary for analysis in your free time from trading their operations, identify their mistakes and correct decisions.
• Averaging. Purchase of additional lots in a losing position with a mind to reduce the loss, but threatens to ruin.

The second group includes errors that arise as a result of the wrong attitude to the market and the situations that arise on it, as a result of finding the trader in an emotionally loaded state.

These include:

• Greed of the trader or trade "for good luck". The trader recognizes that each oscillation of the market is its lost profits, as a result, it starts randomly, without analysis to open trades.
• Lack of willingness to learn. After a few successful transactions, the beginner usually begins to think that he is a professional and does not need training.
• Emotion in the trade. Making decisions based on emotions often leads to mistakes.
• The desire to win back losing positions. Newcomers are not used to losses, so they are shocked to see a minus sign instead of profit, as a result, newcomers try to win back positions and make wrong decisions.
• Following the advice of professionals. Not always the advice given by professionals are correct. Few people can predict the market for 1 – 2 years ahead. Often, even if such people appear and can actually use the predictions, in the end they lose everything, relying only on their "predictions".

Instead of an epilogue

Answering the question: "is it real to make money on the exchange", I would like to note that, despite the many obstacles and high competition, earnings on the exchange is possible.

Beginners can give their funds in trust, but it is important to pre-evaluate the Manager, if he will not merge your Deposit faster than you would do, investing on their own?

There are many ways to invest. Most of them will allow you to increase your Deposit.

But remember that trading is not for everyone. And it's not bad, each his own.

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