Financial Market: Beginner Rules
Some time ago, investing in financial instruments was not attributed to conservative methods of earning income, such as investing in a currency or a bank deposit (deposit). Today, the trend is changing - in the world of finance, high technologies are beginning to rule the ball, programs and robots are helping brokers, the role of big data and complex tools for processing huge amounts of information is growing. However, all this does not negate the base - basic knowledge and skills, understanding the structure of investing in assets. And even more so, it is the knowledge of the basics that a private investor needs. Interaction with a broker is work in conjunction with a professional market participant who helps make decisions, delve into trends and analyze them - sooner or later this will give a synergistic effect.
Today we decided to create a small educational program for newcomers to the financial market and those who want to learn a little more about it.
First of all, you need to assess the financial possibilities of private investment. For trial experiments, you can start with quite a bit of capital, but to get income you need to start with a larger amount. We form an investment portfolio using the Android application “My broker”.
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Invested funds should not be the last or significant part of the savings of a private investor. This is connected not so much with the possible risks of diversification, but with the terms of investment. Investing in financial instruments is a long-term operation, so it is better to use the money that you plan to save and increase.
The next important step is to distribute the capital correctly. You need to combine several tools: for example, investments in assets and currencies. Within each investment portfolio funds must also be distributed.
It is best to start with basic securities (stocks, bonds of companies), derivative securities, as a rule, are more complex and risky. Major securities of large companies are more predictable in the long term, liquid and reliable. Another advantage of such assets is dividends paid to holders of securities. This is an additional return to the investment return on the portfolio. Consider this portfolio in My Broker.
For example, with minimal experience, an amount of 300,000 rubles, an investment period of more than three years and minimal risk, the application proposes to form a portfolio of shares of issuers: 22% of the Alrosa diamond concern, 55% of Norilsk Nickel MMC, 22% of Magnit retailer .
With minimal experience, the amount of 300,000 rudders, the investment period of up to 1 year and the weighted risk strategy of the share of the same issuers in the portfolio change: 45% of the diamond concern Alrosa, 27% of MMC Norilsk Nickel, 27% of the retailer Magnit.
Indeed, if we look at the dynamics of issuers, the strategies are confirmed: a more profitable and risky portfolio includes riskier assets.
The ability to read information, analyze it and apply to practical actions is important in any discipline, but in the financial world, this skill plays a key role. The course of trading is sometimes influenced by insignificant news and events occurring both within the company and in macroeconomics. If you pay attention to electronic panels for working with stocks, to thematic portals, you will see a constantly changing news feed - this is an important tool for any investor. And you should track the news not only of the company whose securities you have, but also of industry and global ones. We have repeatedly been able to observe the effects of military conflicts and diplomatic differences, which led to significant fluctuations in the price of oil and stock market indices. So, in “My broker” you can open news on the issuer, political, economic, world events.
Technical analysis helps to predict the likely change in prices based on previously identified patterns, analyzing the influence of factors on trend changes. Graphs (charts) for the period, statistical data on the volume and structure of trading are used for the analysis. The basis of technical analysis are three postulates:
Technical analysis uses various types of charts (for example, standard charts, candlesticks, etc.). Different charts provide a different data slice: the same candlesticks reflect the dynamics over time, the trend (in the color of the candle body), the maximum and minimum price in each time interval, the opening and closing prices.
Despite the criticism and the decline of relevance against the background of the growth of automated trading, technical analysis remains a must have tool for both professional participants and private investors.
Following the results of transactions and operations, it is necessary to conduct post-analysis of trading operations, consult with a broker. By the way, about the broker - he must be reliable and experienced. We have also provided for this in “My Broker” - at any time you can connect with your consultant and discuss the prospects of the current strategy. In addition, the application can consider ready-made investment decisions - recommendations for transactions with profitable and current assets.
Excitement and greed are not the best advisers on the financial market. Everything related to the economy and money management requires a cold calculation. Do not strive to make money on strong market fluctuations - the trend may turn around and the investor will lose out. Private investment is a thoughtful process of working with own savings, it is a whole science at the intersection of economics, statistics, mathematics, probability theory.
What to follow, what information to pay special attention to?
As in any business, in private investing success comes with experience. Moreover, you can rely on a broker and not delve into the particular operations in the financial market. However, it is much more interesting and efficient to understand and expect profitability with an understanding of the nuances. In the modern world, awareness and financial literacy are clearly not superfluous.
PS: Last time, a question was asked about the access to the application. On both platforms, the application is completely free.
Today we decided to create a small educational program for newcomers to the financial market and those who want to learn a little more about it.
Private investor: to pump skills
First of all, you need to assess the financial possibilities of private investment. For trial experiments, you can start with quite a bit of capital, but to get income you need to start with a larger amount. We form an investment portfolio using the Android application “My broker”.
')
Invested funds should not be the last or significant part of the savings of a private investor. This is connected not so much with the possible risks of diversification, but with the terms of investment. Investing in financial instruments is a long-term operation, so it is better to use the money that you plan to save and increase.
The next important step is to distribute the capital correctly. You need to combine several tools: for example, investments in assets and currencies. Within each investment portfolio funds must also be distributed.
It is best to start with basic securities (stocks, bonds of companies), derivative securities, as a rule, are more complex and risky. Major securities of large companies are more predictable in the long term, liquid and reliable. Another advantage of such assets is dividends paid to holders of securities. This is an additional return to the investment return on the portfolio. Consider this portfolio in My Broker.
For example, with minimal experience, an amount of 300,000 rubles, an investment period of more than three years and minimal risk, the application proposes to form a portfolio of shares of issuers: 22% of the Alrosa diamond concern, 55% of Norilsk Nickel MMC, 22% of Magnit retailer .
With minimal experience, the amount of 300,000 rudders, the investment period of up to 1 year and the weighted risk strategy of the share of the same issuers in the portfolio change: 45% of the diamond concern Alrosa, 27% of MMC Norilsk Nickel, 27% of the retailer Magnit.
Indeed, if we look at the dynamics of issuers, the strategies are confirmed: a more profitable and risky portfolio includes riskier assets.
The ability to read information, analyze it and apply to practical actions is important in any discipline, but in the financial world, this skill plays a key role. The course of trading is sometimes influenced by insignificant news and events occurring both within the company and in macroeconomics. If you pay attention to electronic panels for working with stocks, to thematic portals, you will see a constantly changing news feed - this is an important tool for any investor. And you should track the news not only of the company whose securities you have, but also of industry and global ones. We have repeatedly been able to observe the effects of military conflicts and diplomatic differences, which led to significant fluctuations in the price of oil and stock market indices. So, in “My broker” you can open news on the issuer, political, economic, world events.
Technical analysis helps to predict the likely change in prices based on previously identified patterns, analyzing the influence of factors on trend changes. Graphs (charts) for the period, statistical data on the volume and structure of trading are used for the analysis. The basis of technical analysis are three postulates:
- price movement in the market takes into account all information (including economic and political events);
- history tends to repeat - trends can be used to build a forecast;
- price movement is subject to trends - all time series of prices can be divided into segments in which prices fall / rise dominate (the probability of a trend remaining in a short period is higher than the probability of its reversal).
Technical analysis uses various types of charts (for example, standard charts, candlesticks, etc.). Different charts provide a different data slice: the same candlesticks reflect the dynamics over time, the trend (in the color of the candle body), the maximum and minimum price in each time interval, the opening and closing prices.
Despite the criticism and the decline of relevance against the background of the growth of automated trading, technical analysis remains a must have tool for both professional participants and private investors.
Following the results of transactions and operations, it is necessary to conduct post-analysis of trading operations, consult with a broker. By the way, about the broker - he must be reliable and experienced. We have also provided for this in “My Broker” - at any time you can connect with your consultant and discuss the prospects of the current strategy. In addition, the application can consider ready-made investment decisions - recommendations for transactions with profitable and current assets.
Excitement and greed are not the best advisers on the financial market. Everything related to the economy and money management requires a cold calculation. Do not strive to make money on strong market fluctuations - the trend may turn around and the investor will lose out. Private investment is a thoughtful process of working with own savings, it is a whole science at the intersection of economics, statistics, mathematics, probability theory.
In general, we advise you to follow simple rules.
- Have an investment goal , preferably expressed as a percentage or amount of desired income. It is clear that the only goal is to buy cheaper, sell more, the difference itself. But if you perceive work in the financial market as a job, as a process, then the result will be long.
- Failures happen - with minimal market signals, do not be afraid to change the portfolio structure and reinvest funds. However, closing accounts with each swing is also a destructive strategy.
- Manage risk: diversify a portfolio, distribute funds, do not initiate operations on assets while reaching peak trends.
- Beware of speculation and do not get involved in questionable deals. By the way, it is easy to recognize speculation. Here the phrase “Nothing foreshadowed” is most suitable: asset prices begin to fluctuate despite the current situation on the market and the expected trend.
- Keep a diary of the movement of assets and portfolio returns. By the way, in the “My portfolio” section of the “My Broker” application, the rates of return are considered in real time - one less care.
- Mark the time of growth of profitability and remember it, it will help with the technical analysis. So, for beginning private investors, the morning, the hours of rest and the last hours of the holidays are most unfavorable.
- Listen and analyze the entire background: news, expert opinions, analysts' statements, read the annual reports of your assets issuers, but do not be fooled by rumors! In the "traders" forums intentional stuffing of information can occur, perceive information critically. In case of concern, you can always contact your financial advisor.
What to follow, what information to pay special attention to?
- World stock indexes, the situation on the stock exchanges. The world economy is as unified as the oceans - a small shift on the Tokyo Stock Exchange will necessarily respond to the Moscow one. All indexes are available in My Broker.
- Russian indices and especially oil prices. Indices show the trend of the market as a whole, but with oil all the more interesting. This commodity affects not only the rate of the national currency, but also the movements of the stock market and indices, since the index includes several large oil and gas companies. Oil prices and detailed information on Russian indices are also available in My Broker.
- Macroeconomic indicators : refinancing rate, international sanctions, foreign policy, the position of the state in relation to the issuer of the securities that make up your portfolio.
- Events around the issuer , including the attitude of the end user to the product. For example, before the New Year holidays, there is a rush for a lot of goods and the value of retailers' shares is growing.
- Various statistics: Rosstat reports on the state of affairs in the national economy, indicators of the banking sector, public reports and much more.
As in any business, in private investing success comes with experience. Moreover, you can rely on a broker and not delve into the particular operations in the financial market. However, it is much more interesting and efficient to understand and expect profitability with an understanding of the nuances. In the modern world, awareness and financial literacy are clearly not superfluous.
Download Android App on Google Play
Download the application in iTunes
PS: Last time, a question was asked about the access to the application. On both platforms, the application is completely free.
Source: https://habr.com/ru/post/394901/
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