Earnings on the stock exchange: how to play and win
Video: Earnings Reports: How To Find & Trade Winners💸 2024, July
The exchange is currently presented to many as a source of almost "free" money, as a symbol of prosperity and financial prosperity. It may be so, but only this is the hardest work. If anyone sees the exchange as a betting game like a sweepstakes, then his savings should only be sympathized with. So, the exchange is not a game, but a job!
Instruction manual
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Firstly, it is impossible to beat the exchange, it is not a rival, but an intermediary. On the exchange there are owners of shares (raw materials, precious metals, currencies) and those who want to purchase them. In Russia, the expression "win on the exchange" is accepted, but it does not mean a game in the literal sense of the word, but a source of income. Do Americans, for example, say "make money in the market"? This is a more reliable option. Remember: we say "play and win on the exchange", we mean - work and earn.
2
The first thing a stock market player needs to know is the concept of leverage. Here, I mean the opportunity to enter the market with 1-2 thousand dollars and take a loan without interest and commissions, as a result of which an amount several times higher than your initial capital is received. At the same time, the lender constantly monitors your transactions - as soon as you have conducted an operation that has used up all your money, leaving only borrowed funds, your account is blocked and a great and terrible “margin call” arrives. The latter concept means a request to replenish the account. Everything is simple.
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If everything was really so simple, then the world would simply be bursting with money bags. You can become a millionaire in a couple of days only if you are a billionaire. To play and win on the stock exchange (work and earn money), it is advisable to have an economic education. Buying stocks (currency, raw materials, precious metals) is impossible at random - this is a direct road to poverty.
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The most common ways traders use the exchange is through fundamental and technical analysis. In the first case, we mean a thorough study of economic indicators related to the asset that you are going to acquire. If your goal is currency, then you need to analyze the country's GDP, demand for goods, various indices, discount rates of banks, etc. If a trader decides to buy shares, then he studies the financial condition of the respective company, if raw materials need information and forecasts for supply and demand in soon. Using technical analysis, the trader looks at how the market behaved before, and on the basis of these data reveals a tendency that, in his opinion, will be repeated in the future. Thus, adherents of technical analysis try to guess the behavior of the exchange.
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Recently, supporters of these two types of analysis have begun to converge in views. Many argue that it is best to “mix” forecast methods. This point of view seems logical, if only because no fundamentalist can do without asset price charts before the deal.
