How to buy shares and make money on securities? How to make money on stocks - Our real examples and methods How to make money on stocks from scratch.

Today, many people are aware of the stock market and the possibility of investing their capital in shares. But this knowledge alone is not enough to make money on the stock exchange. In addition to income, an investor may receive a direct loss and even lose all of his capital. First of all, an investor must understand why he came to the market and what he wants to get from it?

The first thing an investor should know is that you won’t get rich overnight.

Even after completing a lot of training and reading many books, a person still needs to gain real trading experience. Only together, all these factors will help you earn income on shares and not lose it in the future.

How to make money on stocks from scratch

If you look at stock trading from a practical perspective, you can see with clear examples how easy it is to make money on stocks, as well as the advantages of working with the securities market. Separately, we will talk about the “” strategy and its benefits for investors.

• Let's give an example right away. As an investment object, we chose shares that, in addition to a hypothetical increase in market value, will be able to show good conservative income in the form of dividends.

Currently, Chevron Corporation is the leader among liquid stocks ( 4,67% ), distributing profits among investors.

• Let's choose a year as the investment period and see how much you can earn on shares during this time.

Owned by a broker who has been in business for over 20 years. The platform itself is under the control of European regulators CySEC And MiFID. Here you will find a huge number of stocks, stock indices, ETFs and more.

The broker offers a huge asset base, an academy (training programs), constantly conducts webinars, provides analytics and has a very convenient trading platform to which a large number of indicators are connected. The platform itself has a block with the latest news and forecasts in Russian. Minimum deposit $200 .

Official website:

From what has been written above, you can understand that earnings on shares highly depend on the prices of the shares themselves. When buying, you immediately include in their price at least the amount of this profit, to which the exchange rate market value of these shares will be added (or subtracted).

This kind of dynamics can be seen among blue chips. Second-tier shares have stronger fluctuations, which can bring profits in the region of 40-60%, which can be considered a very good return. But in all investment options there is always the possibility of losses.

Professional traders who work on trading strategies and make many trades during a trading session can make much more profit, but it all depends on the quality of their technical indicators and trading principles.

The answer to this question worries many novice investors. It's worth starting with large investment funds that have a personal staff of professional analysts and traders who competently manage the capital of their organization. Together with banks, these structures are on the market and have an extremely strong influence on supply and demand.

Naturally, an ordinary person will not be able to outperform an entire team of professionals who have complete carte blanche to develop and test the latest trading systems and strategies. However, it must strive exactly as the largest financial corporations do.

In addition to legal entities, the exchange also employs private investors. As a rule, these are people from the above-mentioned investment funds or brokerage companies who decided to independently use their trading skills and work “for themselves.” These are the onesMarket participants receive the highest returns thanks to their skills honed over years of work and analytical mindset. At the same time, such people are deprived of any restrictions on the risks that their former employer imposed on them.

However, these traders are deprived of some opportunities in terms of the latest technology and insider information. Such market participants are closest to the ideal that traders should focus on.

And lastly, we will look at the type that is closest to a novice investor. We'll talk about private self-taught investors. They earned some capital and decided to increase it by investing in securities. Unfortunately, most of these traders lose their money on the exchange. This happens for a fairly simple reason: they cannot overcome themselves and admit their own mistakes.

It is the repetition of the same actions without making any fundamental adjustments that ultimately brings losses.

But you shouldn’t think that if you came to the market yourself, you will definitely join the ranks of losers. Man is the architect of his own destiny. If he can find the strength to understand and accept the rules of the game in the market, success will certainly await him. This is a kind of test for flexibility of thinking and freedom from stereotypes.

Risks and returns of investments in securities

To make money on stocks, a private investor must think like a real businessman. He must understand what income he expects this month, how much he can risk so as not to jeopardize the very existence of his “business project,” what should be changed and what should be left unchanged.

Where to start your journey?

First of all, making money. A trader must have his own capital to trade in the stock market. When the initial deposit is formed, you can immediately begin trading. The question arises again about what is more convenient for the investor. If he cannot spend whole days in front of his PC monitor, then you can try to buy some dividend a stock that is currently falling or correcting. This purchase will be long-term, so after the transaction you can forget about it for a year or two.

If the security shows any loss during this period, it can be compensated by the payment of dividends, which average 7-10% per annum. But, as practice shows, all stocks grow at least by the amount of inflation in the country, so there will presumably be income for this period.
Naturally, you should not look for some illiquid securities whose issuer is on the verge of bankruptcy. In addition, dividend stocks, as a rule, are always in high demand, which will also have a positive effect on the market value of the paper.

At the end of the investment period, the trader can open his brokerage report for this period and analyze how his account changed over these months, how dividends were paid, what taxes were withheld and other nuances. This will allow you to gain all the necessary experience in terms of investment.

If an investor wants to conduct continuous trading and receive daily profits from it, he should have enough time. He must choose a trading strategy that suits him, preferably with the least risk, and trade according to its rules, completing at least 100-200 transactions. Tradefollows the minimum possible lot. At the end of the trade, it will become clear what real profitability the strategy shows and what can be changed in it. When a trader can receive a stable income, trading volumes should be increased so that the income from all his transactions becomes tangible.

It is worth recalling that according to the economics textbook, the stock market is an instrument for the redistribution of funds.

In reality, this is exactly what happens. After all, someone’s loss at the same moment is someone’s profit. at any given time, you need to understand that right now someone is selling them, therefore, when making a transaction, you are playing not only against the faceless market, but also against real market participants who really do not like to make mistakes.

If you find an error, please highlight a piece of text and click Ctrl+Enter.

The concept of "liquidity" means that you can quickly exchange all your assets into cash. Investors have practically no more liquid options for saving money (only currency and cryptocurrency).

The most liquid securities are

Let's take a brief look at what each of them represents.

Stock(stock) are securities of the issuer that give rights to own part of the company. On stock exchanges, prices constantly change during trading. Shareholders receive annual dividends (part of the company's profits for the previous year) and participate in annual general meetings of shareholders (AGM).

Bonds(bond) are securities that allow holders to receive a pre-known guaranteed reward. Bonds are very similar to a bank deposit and are much less volatile than stocks.

Bonds are a more conservative way to save money because they are less subject to volatility. The income from them is more modest, but predictable. Despite this, most investors tend to invest the majority of their money in stocks.

2. Stocks vs bonds

Why do most investors choose riskier assets? The whole point is that in the future, shares are a more profitable instrument for several years. If the average income in bonds does not exceed 7-10% per annum, then shareholders expect a profit of 12-15% per annum on average. If you take a short period, then due to high price volatility, the profitability may even be negative.

Bonds provide the opportunity for stable earnings (like bank deposits), but relatively small ones. Apparently due to the great desire to obtain greater returns, investors are more likely to invest in stocks.

To summarize, you can make money in both stocks and bonds. The former are more risky, but the income potential is higher. The ideal solution for an investor is portfolio diversification, that is, buy two types of securities in some reasonable proportion (for example, 50%/50%).

Read more about the comparison of these two securities in the article:

3. How you can make money on stocks

Earnings on shares come from two components:

1. Increase in price exchange rate (main component)
2. Dividends (on average ranges from 3% to 10%, but may not be paid in some years)

4. How much can you earn on stocks?

It’s not worth talking about the absolute amount of income from shares, since everyone has different capabilities and understanding of the amount. For example, for some, an income from securities of 50 thousand per year will be considered a good income, while someone earns that much in a couple of hours.

As a percentage, the income from shares is about 12-20% per annum (including dividend payments). Moreover, for such profits, the simplest “buy and hold” strategy is suitable, that is, an investment that does not need to be monitored.

If you buy more shares when they fall and sell them when they rise, you can easily achieve a yield of 20-30% per annum. These numbers are not the limit, these are average values. Under favorable circumstances, profits can reach much larger amounts: 50-150% per annum.

Step 2. Opening a brokerage account

Step 4. Buying shares

As soon as you have funds in your account, you can place orders to purchase shares. The broker will provide you with access to trading terminals. For example, this is what the interface looks like when purchasing Sberbank shares (SBER) through the Finam Trade application (broker Finam)

The application also has a convenient opportunity to view the current trading schedule

Read also:

6. Approaches to investing in stocks and securities

Let's consider two approaches that are most often used when investing in securities.

6.1. Investing in one share

The single-stock approach carries serious risks. Your balance will "fluctuate" exactly like that company's quotes. This only means that if it grows faster than the market, then the income will be higher, otherwise lower. It is very unpleasant to see the picture if your asset is not growing, but the entire market is growing.

The risks of investing in one company are clear and justified. “Force majeure” happens to business, which sometimes do not even depend on the activity, but are consequences of external circumstances (sanctions, disasters). If profits fall, quotes will collapse in price.

If the initial amount of investment in shares is small (less than 100 thousand rubles), then the decision to invest in one asset can be fully justified. There is no point in scattering all over the market with a small amount.

Also, this approach can allow you to make good money on fluctuations in the price of this stock, since you monitor exclusively one asset. It's much easier than buying 10 companies and monitoring them all at the same time.

6.2. Creating an investment portfolio

I advise you to read:

8.2. Is it possible to live on earnings from stocks?

The market is cyclical. Any trader experiences periods of high income and negative ones. Moreover, no expert can say exactly how long this or that period will last.

You need to understand that income from shares may be zero for several years. Of course, situations when the market does not grow for more than 1-3 years are extremely rare. Growth periods usually take longer periods of time (3-10 consecutive years).

Therefore, answering the question of whether it is possible to live on earnings from shares: it is possible, but you need to distribute your assets wisely, since you may have to live for a couple of years without income from the stock exchange.

8.3. Is it worth putting money in trust?

Trusted management of money always carries risks. Any fund wants to make money, and to do this it needs to take risks. Therefore, be prepared for fluctuations in your portfolio of 3-5% per day.

Lately, many people have been thinking about how to make money in stocks. They see this way of attracting additional income as the most profitable and enriching. But in order for these equity securities to generate significant income, you need to be well aware of the principles of the financial market. This is due to the fact that the elements of the entire price system are interconnected. If a change occurs in one sector, it will inevitably affect other sectors.

How to trade stocks

The principle of stock trading is based on constant investment, the goal of which is to make a profitable investment of funds and subsequently make a profit from sales. The work of an investor involves a continuous process of obtaining and updating knowledge in the field of interaction with equity securities. There is also a place for creativity and creativity: the ability to develop your own original strategy applicable to trading plays a big role.

Fundamental and technical analysis will help you choose the right stocks. These types of analyzes help put money where the investment will be most profitable.

Securities are traded on the stock market. You can purchase shares:

• For large companies;
• In developing enterprises;
• From specialized authorized companies.

For those who have just entered the securities market and have no idea how to work with stocks, there is the opportunity to hire a sales representative who is a professional in his field - a broker. When choosing an intermediary, the following factors must be considered:

• Broker reputation;
• Number of previous transactions;
• The result of these agreements.

Also, do not forget that intermediaries take a set percentage of the profit received for their work.

What will the broker do? He will provide a demo version of the account for learning to trade online. After the beginner becomes familiar with the intricacies of the securities market, you can begin working with a real deposit. But if the investor does not want to spend his time studying the basics of how the market functions, the company can take over trust management of capital. This is quite convenient, because the conditions are set by the investor himself. The best brokers today are:

1. Just2Trade;
2. Rstocks;
3. EXANTE.

Since the stock market is a complex system with its own rules and laws, which are sometimes difficult to understand even for professionals, working on it is only suitable for those who are confident in their abilities and are ready to overcome difficulties.

How to start investing in company shares

To purchase shares, you must have initial capital. The amount a trader wants to purchase securities for determines how much money is needed for trading.

Let's assume that a novice trader has opened a demo account, completed training and is ready to start working on the real stock market, but does not yet know how to work with stocks. In this case, the next step will be to select the most suitable securities for purchase (this can be done independently, or by turning to brokers for help). At the moment when they rise in price, you can immediately sell equity securities, but you can also save shares in anticipation of further growth in the value of assets. The trader's profit will be equal to the difference between buying and selling.

Experienced investors advise creating portfolio securities as an effective way to actually make money. Successful trading directly depends on the literacy of its preparation.

Trading shares on the stock exchange without investments: broker bonuses

It is also possible to benefit from stocks without investing. Brokers are well aware that not everyone has sufficient funds to invest.

Many brokers, providing their own platforms for work, offer newcomers cash bonuses for completing registration.

Where to invest this money is up to the client himself. You can withdraw bonuses only after making a fixed number of transactions. If you skillfully take advantage of such an offer, you can not only keep your money, but also make a significant profit, which is withdrawn along with bonus accruals.

What stocks to buy to make money

Many novice traders believe that the surest way to make money on stocks is to buy the most expensive ones. This opinion is fundamentally wrong. The reliability of shares is not expressed in their price, because a rise in price can be either a consequence of objective reasons or the result of external economic factors. With the same probability, tomorrow their price may fall sharply, and the investor will be left without profit (if he does not suffer losses). From time to time, buying cheaper shares may be more profitable, provided that the investor anticipates the further development and growth of the company that issued the securities.

How to choose stocks for investment: company analysis

For a trader whose goal is to invest in stocks and receive passive income, dividend-paying stocks are the best choice. Thus, the shareholder is provided with annual passive income, expressed in interest payments.

Another common misconception is the opinion that the size of the company affects the amount of risk with an inverse relationship (the larger the company, the lower the risk of losses and vice versa).

Although large companies have high annual growth rates and have a reputation, all this can become useless if the company stops growing. Those significant sums that were spent on the purchase of shares from these subjects of a market economy may not pay off in this case.

The advantage of small businesses is that their shares are initially inexpensive. If you correctly analyze the possibility of further development of such a company, you can make a good profit when the company reaches a new level.

Risks when buying shares on the stock exchange

It is important to correctly assess the associated risks when purchasing shares. There are several ways how this can be done:

• Seek help from experienced experts;
• Analyze the situation yourself;
• Rely on intuition, which for most is a last resort;
• Follow economic news.

Typically, the highest profits are made by those investors who focus on such an aspect as liquidity (the ability to sell existing assets as quickly as possible at a price close to the market).

But the question is much more significant - ways to reduce possible risks to a minimum. It is not always possible to avoid losses, but it is quite often possible to minimize them. Recommended:

1. Reduce costs by competently compiling an investment portfolio;
2. Initially, try several trading options and choose the most suitable one for you;
3. If your account decreases by 5%, it is better to stop trading before the end of the current month - this will help you avoid going bankrupt;
4. Buy securities so that the risk during agreements does not exceed 2% of the capital, since it is difficult to lose 50 times in a row even with complete bad luck;
5. Use stop orders.

Compiling an investment portfolio of shares: what are the benefits?

Since the phrase “stock portfolio” has already been mentioned several times in the article, it is fair to say a few words about it. Before you begin to generate income from the sale of shares, you need to be aware that shares belong to portfolio assets.

The so-called “portfolio” reduces the risk of losses to a minimum, makes profits stable and ensures reliability when investing capital. It represents securities collected together, issued by different companies. It is desirable that companies belong to different industries.

Thus, by replenishing the portfolio with new shares, we make investments more reliable, because a decrease in the price of shares of one company is necessarily compensated by the price of securities of other companies.

How to make money on stocks via the Internet

In the modern world, it is possible to manage securities on the Internet.

The profit received depends on which method of purchasing shares the trader chooses. Let's consider the main ones:

Real trading:

• Company shares are purchased;
• The amount of earnings depends on dividends and share price growth.

Speculative trading:

• It is not securities that are purchased, but obligations to transfer them;
• Profit depends on the leverage provided by the brokerage company (if the agreed size is 1:100, and the deposit amount is $100, then a transaction can be opened for an amount that exceeds one’s own funds one hundred times).

Real trading is less risky, but the profit from it is much less, while in the case of speculative trading, the size of the expected profit can increase significantly. Accordingly, the risk associated with loss of funds is also quite high with this method.

According to statistics, a successful investor can make a profit in the form of 40-60% per annum.

At first glance, the amounts look disappointing, but after comparing them with deposit fees, it becomes clear that earnings on stocks are much higher.

In order for trading to become profitable, we recommend adhering to the following tips, the usefulness of which has been appreciated by many novice traders:

1. Don't treat stock trading as a game of chance;
2. Before starting trading, it is necessary to analyze the current situation on the stock market;
3. Open a deposit in an amount within the limits to which the trader is willing to tolerate losses;
4. Do without loans and credits, they are the ones that can cause a lot of difficulties in the future;
5. Carefully study the shares that you plan to purchase, and do not buy all securities indiscriminately;
6. Develop a sense of responsibility and discipline yourself.

Who can start trading shares

Both individuals and legal companies work on the exchange, namely:

• Investment funds:

Their headquarters includes professionals in their field: analysts, traders, etc. The efficiency of their work is much higher compared to the activities of a single investor, but a novice trader should strive to organize his work in the same way as large companies do;

• Individuals – private investors:

They are often former employees of investment funds or brokerage houses, where they do not feel adequate freedom of action. Such people have enough experience to earn a decent income on their own;

• Self-taught traders:

This category includes people who have managed to accumulate a certain capital and are interested in increasing it. Unfortunately, most of them lose all their money on the stock exchange because they are unable to objectively admit their mistakes and learn from them.

Today, almost every representative of modern society wants to gain financial independence and become a wealthy person. And such a desire is completely justified: material well-being gives confidence in the future. Of course, today there is a whole arsenal of ways through which a person can get rich. And one of the effective ones is the acquisition and sale of securities. In addition, their owners may not make any transactions with them at all, but receive a fixed income, which is called a dividend. That is why the question of how to make money on stocks is becoming extremely relevant today. But before we move on to its consideration, let’s determine why it makes sense to invest money in the above securities.

Why shares?

Buying and selling shares is a sure way to save and increase your capital, primarily because, as already emphasized, it allows you to have a stable profit.

However, a lot here depends on whether the investment portfolio is chosen correctly. Anyone who is interested in how to make money in stocks should also remember that the possibility of going broke in this business exists, so one should not create any illusions about getting rich quickly. To successfully trade securities, you need to study, understand the basics of trading, read special literature on this topic and communicate with those who have achieved high results in this business.

Well, for beginners who still have vague ideas about how to make money on stocks, we can recommend the following: find a good broker who will help you make a successful transaction for a certain percentage.

So, there are several options for generating income using the above securities. The first implies enrichment due to the difference in exchange rates. As a rule, it is chosen by those who are passionate about money and morally resistant to financial risks. The second involves gaining financial stability through dividends. This method is more reliable and less risky.

Before moving on to the practical side of the question of how to make money on stocks, let’s define what this financial instrument is.

Concept

A share is a security that certifies the right to receive a portion of the profits from the activities of an enterprise. Its owner becomes a co-founder of the legal entity that issued it. The amount of dividends is distributed among all shareholders in proportion to the number of securities. Moreover, the owner of the security can receive dividends or sell it to another person who also owns shares of the same company. It is he who is given the right of first refusal by the law.

Stock market

Don't know how to make money on stocks? Go to the stock market. This platform is specifically designed to carry out transactions in securities. But where to start? First of all, you need to enter into an agreement with a reputable broker who will open a demo account for a beginner. Thus, a novice businessman will be able to begin learning to trade in the stock market. In the process, he does not risk anything, since he will work with virtual money. After you have acquired the necessary experience and knowledge, you can try your hand at a real account.

Of course, the stock market is subject to certain laws. Even experienced traders sometimes find it difficult to navigate them, not to mention beginners who have a very vague idea of ​​how to make money on stocks. If you are not sure of the correctness of the decision made, then you should not make a transaction.

What do you need to remember?

An analysis of reviews from novice traders shows that most beginners make one serious mistake: they invest only in the most expensive securities, hoping to immediately make fabulous profits. It is necessary to take into account the fact that securities can jump in price due to external factors, but their high cost is not at all an indicator of reliability. Today the market has influenced the growth of their value, but tomorrow they can significantly lose value. As a result, the investor may end up with a big loss. In some cases, you should buy inexpensive shares, but you need to be sure that the issuing company has growth plans.

If a trader is pursuing the goal of receiving passive income, then it is better to focus on securities that provide dividend payments.

Work algorithm

So, the beginner has passed the learning stage and is ready to act in practice, having fully understood the mechanism of how to make money on stocks.

Now he faces a difficult choice: which shares to buy? Then everything is simple: as soon as the price goes up, you can make a sale transaction. The difference between acquisition and sale will be the amount of profit. Some experts recommend creating your own securities portfolio for successful trading.

Amount of income

Of course, beginners are primarily interested in the question of how much they earn on stocks. Much here depends on which trading option the trader used. If we are talking about purchasing securities of a particular company, then the amount of income will be determined by two factors: dividends and the degree of appreciation of shares. Real trading involves less risk and low profit. But speculative involves the purchase not of the shares themselves, but of obligations to transfer them. In the latter case, the amount of potential income increases significantly. The fact is that it is influenced by “leverage” - an option that is provided by the broker. For example, if its value is 1:100, and the deposit size is $100, then a transaction can be opened for an amount that is one hundred times greater than the funds available in the account.

Still, how much can you earn from stocks? Statistics confirm that a professional trader can easily count on 40-60% per annum. Naturally, these are not fabulous profits, but they far exceed the profits on interest-bearing deposits offered by banks.

What securities to invest in?

This issue is decided by each individual. You can listen to the opinions of experts, or you can make a choice based on technical and fundamental analyses.

Some even use their own intuition in this matter. The main thing to remember is that the shares must be highly liquid. To choose the right securities, you also need to follow stock market news and track the economic calendar.

What stocks can you make money on? Reviews from experienced traders indicate that you should take a closer look at enterprises that belong to a privileged caste. We are talking, in particular, about Gazprom, Sberbank, Severstal, Uralkali, Surgutneftegaz... Such companies are stable in growth, so their securities are almost always in demand.

Trading on the World Wide Web

No less pressing at present is the question of how to make money on stocks on the Internet.

Yes, you can also trade securities online. Traders make transactions using special software that allows them to communicate with exchange platforms via Runet. Buying and selling stocks online is not much different from real trading.

In the first case, income is derived from short-term adjustments in stock prices. A trader purchases securities in order to later sell them at a higher cost. But such an ideal model does not always happen in practice.

It is noteworthy that online trading allows market participants not to adhere to the above rule. In particular, there are cases when an investor sells securities at the maximum price, having previously borrowed them from a broker, and then buys the same securities, but at the minimum price. The above strategy allows you to generate income even in conditions when the market shows negative dynamics.

Online trading is an ideal starting point for those who prefer to use "hard" speculative tactics. Here investors make trades more often than in standard trades.

A huge number of transactions are carried out on the virtual platform throughout the day.

Conclusion

So, we found out whether it is possible to make money on stocks. However, this business should not be treated like roulette in a casino. It requires a serious and competent approach: you need to regularly monitor the situation on the stock market, follow the news, and use technical and fundamental analyzes in a timely manner.
For successful trading, the psychological attitude is also very important: transactions should be made with a clear head and cold calculation. Very often, beginners, having made a profit from their first transactions, subsequently lose control of themselves and, succumbing to excitement, lose their entire deposit. It is not recommended to borrow money in order to hit a big jackpot in the stock market. It makes no sense to indiscriminately buy all the shares in a row: it is necessary to study the reliability of the issuing companies in advance.

An important component of success is the investor’s discipline. Only a competent approach to business will bring good profits.

Evgeniy Malyar

Bsadsensedinamick

# Business ideas

Famous trader Warren Buffett made his first profit at age 11. He purchased a 6-pack of Coca-Cola cans for 25 cents and resold each one for a nickel for 5 cents.

Article navigation

• How to make money on stocks
• Some terminology
• General principle of earning
• What stocks can you make money on?
• Top 10 stocks considered reliable investments in Russia
• How to make money on Gazprom shares
• How to make money on Sberbank shares
• How to make money on stock dividends
• Earning money by buying and selling shares
• Profit from investing in shares
• Earnings from falling stocks
• Typical problems of making money in stocks
• Advice for novice shareholders and brokers

For most of our fellow citizens, the securities market is a dark forest. People with basic economic training, of course, distinguish stocks from bonds and have an idea of ​​what a controlling stake is, but they relate these concepts to the terminology of tycoons and financial tycoons. Is it possible for an ordinary citizen to make money on the stock exchange?

How to make money on stocks

Earning money from stocks and bonds of companies in Western countries is considered commonplace. A significant part of the population, and not just Wall Street sharks, purchase securities and consider this method of investing savings profitable. Is it realistic to imagine a similar situation here, in Russia or another CIS country? Unfortunately, for a number of reasons, the domestic stock market has not developed widely, but the process, as they say, has begun. It's time to learn about the operating principles of this business, its capabilities and ways to enter it.

Some terminology

Promotion is a security issued (put into circulation) by a commercial organization in order to attract funds necessary for development. Initially offered at a nominal price. After the start of trading, its value is determined by the market relationship between supply and demand. The issuer pays shareholders an annual remuneration in the form of a proportional share of its profits.

Bond– a security that gives the right to a fixed annual income that does not depend on the financial results of the issuing organization. Provides for an obligation to urgently return the buyer's funds with agreed interest.

There are other types of negotiable securities, such as bills of exchange, bank certificates, government obligations, etc. From the point of view of practical use in order to quickly make money on the market (in this case, the stock exchange), shares of various enterprises are of greatest interest.

General principle of earning

Shares represent a commodity that trades in conditions close to an ideal market. The price of this specific commercial product is determined by demand, which in turn depends on quality (ability to generate income). There are two main strategies available to stock market participants.

1. Purchasing shares for the purpose of receiving dividends (investing). In this case, the person who purchased the security becomes the owner of a share of the issuing enterprise. Even if he has only one share, he is still entitled to an annual income corresponding to the share of its value in the total capital.
2. Purchasing shares for the purpose of prompt resale (trading). A market participant aims to make a profit, for which he acquires securities at one price and seeks to sell them at another, higher one. Business is built on predicting the rise or fall of quotes.

Both ways of earning money without investments are impossible. You can become the owner of a share only by paying for it with your own or borrowed money.

An example of a successful implementation of an investment strategy: as of 2003, one share of Apple was worth a dollar. Market participants who took the risk of purchasing securities of a not very successful company at that time, which was having difficulty getting out of an unprofitable state, have today increased the value of their deposits by 150 times. Of course, dividends have also increased.

In this case, the investor himself can choose how to get rich - whether to receive his annual payments or immediately sell the shares at a high price.

What stocks can you make money on?

The value of each security is determined by the financial results of the issuing organization. There is also an inverse relationship - in some cases, shares that demonstrate rapid growth in quotations begin to be in high demand and, as a result, rise in price. As with any business, earning high returns comes with risk, in this case unexpected depreciation.

A person who decides to earn income from stocks has a choice between two courses of action.

1. Become a rentier. You can “cut coupons” by contacting a broker. A broker is an intermediary between the client, in whose interests he acts, and the stock exchange. The fact is that the owner of several shares cannot directly participate in trading. At the same time, the broker is able to competently carry out purchase and sale operations and form a package with minimal risks and optimal profitability. The intermediary will take his percentage for this.
2. Buy and sell securities yourself. In modern conditions, it is quite possible to purchase shares of many companies that appear to be stable in terms of their financial results.

Top 10 stocks considered reliable investments in Russia

As can be seen from the table, the share price may vary. It is not the nominal value that matters, but the movement of value up or down.

How to make money on Gazprom shares

Analyzing the dynamics of stock prices of a gas company over the past decade, one can come to the erroneous conclusion that investing in them is unreliable. Gazprom securities actually fell in price from 360 rubles. in 2007 to 250. The depreciation occurred in 2008 and is explained by the global financial crisis, which led to a decrease in hydrocarbon prices. However, it was then that the company’s shares acquired high investment attractiveness and are now growing steadily.

Gazprom shares have the following advantages:

• They are available. Any citizen of the Russian Federation or a foreigner who has opened an account with Sberbank of the Russian Federation can purchase shares of a Russian company, for which it is enough to present a passport. The same can be done at Gazprombank.
• The tax rate on purchase is only half a percent.
• All Gazprom shares are common, there are no preferred shares.
• They are just as easy to sell as to buy.

How much can you earn

Earnings on Gazprom shares represent dividends, which amounted to 16 rubles for each of them in mid-2019. Analysts' forecasts regarding the growth of quotations are the most favorable: the company is implementing a number of promising projects. New gas pipelines are being built, hydrocarbon prices are rising, which inevitably leads to an increase in the price of securities.

How to make money on Sberbank shares

Sberbank securities quotes change literally every day and are currently growing quite quickly. Profitability in 2019 will be 15–18 rubles per share. The increase in payments to investors is due to a change in the payment procedure (since 2018, up to 40% of the total profit of Russia’s largest financial institution is allocated for dividends). The percentage on preferred and ordinary shares is equal.

The decision on the amount of the total percentage of dividends is made by the annual meeting of shareholders. The voting result is published by Rossiyskaya Gazeta and the official website of Sberbank, after which the register is closed (the so-called “cut-off”). Within a month from this date, dividends are paid.

The shareholder's profit is subject to income tax - 13% of the accrued amount. From the indicated 15 rubles it amounted to 1.95 rubles. An exception is made for clients who have opened an individual investment account with Sberbank with an obligation to keep funds for three years.

To become an investor in Sberbank, you must purchase its shares in one of four ways:

1. From another owner, receive them as a gift, exchange or inherit. To implement each of the listed scenarios, you need to contact a broker, conclude an agreement and make changes to the bank’s register.
2. At a brokerage office. You should pay attention to the size of the commission.
3. At a Sberbank branch. The simplest method, but the share price is not set at the market price, but at the nominal price, usually higher.
4. On the stock exchange. To do this, you need to conclude an agreement with the broker-operator of the Moscow Exchange, fill out an application and install a special application on your mobile device.

How to make money on stock dividends

Annual dividends on shares are calculated using the formula:

Where:
P– amount of income;
N– number of shares;
S– return on shares (if indicated as a percentage, then divided by 100);
v– income tax rate.

Accruals are made, as a rule, once a year. To find out how much your monthly earnings will be, this amount should be divided by 12. The amount of dividends depends only on the number of shares and their profitability.

Earning money by buying and selling shares

Transactions with securities bring more income than the usual storage of funds on a bank deposit. In addition to dividends, exchange rate (quote) differences can also serve as a source of profit. In other words, theoretically, shares can be bought cheaper and sold more expensive. However, it also happens the other way around.

The technology of stock speculation is described in detail and skillfully in the novels of Theodore Dreiser (the trilogy “The Financier”, “The Titan” and “The Stoic”). In most cases, it comes down to the fact that if there is a rising trend in stock quotes, you need to buy, and if they predictably fall, you need to sell.

Is it possible to make money trading stocks? Undoubtedly. Most large fortunes in Western countries were created this way; just remember Warren Buffett. This requires initial capital, deep knowledge of stock exchange mechanisms and instinct, also sometimes called talent.

Profit from investing in shares

There are many historical examples of how the authors of brilliant business ideas were faced with the problem of a lack of initial capital. Not every investor is able to see the prospect of huge profits in a project that seems, at first glance, not entirely adequate.

This was the case with disposable paper cups, the production of which became possible in 1907 only after a long search for a person willing to invest $200 thousand.

Of course, before investing money, every businessman wants to make sure that the project he is starting is 100% reliable, but in practice it is very difficult to obtain a guarantee. The example already given with Apple confirms this. People who invested $1,000 in it now have $130,000 worth of shares. Some might call it luck, but in reality they simply believed in future success and knew what they were investing in.

Earnings from falling stocks

It's easy to make money on stocks when they rise in price - you don't need to do anything at all. Unfortunately, such a pastoral picture is not always observed on the stock market. It happens that securities depreciate in value and it seems that this can only lead to losses. This opinion is not entirely fair. In some cases, you can make money or minimize losses on falling quotes, you just need to know how to do it. To do this, an operation called short selling is used.

A short transaction involves the sale of borrowed shares. The meaning is very simple: if the quote falls, the shares can be bought even cheaper a little later and returned to the owner, and the difference will be of interest to the exchange operator.

A natural question arises as to why the broker managing the shares does not conduct short sales himself, but allows other market participants to do this. In practice, the holder of securities most often does not know that his assets are being “shorted”, everything happens so quickly. The brokerage firm does not object to short transactions also because it receives a commission from any transaction, and all risks are borne by the seller.

Short selling involves certain risks:

• The fall in stocks may suddenly stop, and the borrowed shares will have to be returned without earning anything from them. You will still have to pay the commission.
• When opening a short position, debt or, in fact, credit obligations arise to the owner, which involves paying interest for using the asset.
• The sale of shares immediately before the closure of the register (cut-off) results in the accrual of dividends to the previous owner, and not to the current operator.

Typical problems of making money in stocks

It’s not for nothing that stock trading is often called a game. In this activity, luck plays a significant role. The most successful traders rarely publicly express their satisfaction, much less avoid leaking information about the reasons and methods of their high incomes. Reviews complaining about financial losses are more common. Basically they come down to describing the following two situations:

1. I bought shares that seemed to be reliable, but they fell in price. It should be remembered that the acquisition of securities as an investment, according to the most successful operators (like Buffett, for example), cannot provide quick income. They advise to “buy and hold”. In addition, dividends are paid in any case by all issuers with the exception of bankrupt firms. The value of their shares is reset to zero.
2. Stock prices are affected by market and political instability. On the one hand, this is true, but it is precisely in such conditions that opportunities arise for obtaining quick income from speculation. Another question is whether there is enough knowledge and skills to use them.

Even when entrusting transactions with your securities to a brokerage firm, you should not withdraw yourself from the analysis of its operations.

To minimize risks, it is best to diversify financial investments. In other words, putting all your eggs in one basket is not recommended.