Introduction
As the interests of the banking deposits are not so attractive, the stock market could represent a great source of incomes for the investors. Although, placing the cash surplus in stock and real estates will imply a bigger risk, this fact is compensated by the large potential winnings.
History
There are two main sources of profits on the capital market. The dividends given by the issuing companies, and the growing value in stock given by trading those stocks on the market. In stock business, the price of the titles is given by the market, by buyers and sellers, to be more precise.
The first step in stock business is to choose your brokerage company. You must find a list of approved brokerage companies for the stock market you are interested in. to be more precise, you should enter the site of the stock market, and to search the list of the authorized brokers. Moreover, you should also try to determine the most successful companies in stock trading, as your success depends on the experience and inspiration of the employees of those companies.
Once you have chosen the brokerage company, you should sign the contract. You will be given a user and a password, and you can enter in stock trading using the platform of the brokerage company. Of course, you will also have to establish the commissions of the trading company, based on the sum of money that you want to invest.
Features
When the value of the transactions reaches some high levels, you can negotiate the commission with the broker. The maxim commission is approved by law of the capital market, so you should also check the legal matters connected with this activity.
A commission of 3% and 5% must be paid only if the respective company offers some great services in stock trading, such as opinions about the best investments or reports and charts about the evolution of some stocks.
Don’t forget about the taxes, as those are considered incomes, therefore you should pay taxes to your local government. The investment strategy in stock trading is established with your broker. This strategy must be based on many aspects, such as the time of the investment, and the level of risk the investor is willing to take. You must also establish the level of commitment from the broker. He can leave you to trade by yourself, but he can also make recommendations, but in this case, the commission will be even higher. It is important for the investors to follow the financial reports about the activity of the companies, and also other relevant charts and projections posted by the broker on the site.
Tips and Comments
Once you have financed the account, you will have to place the orders. The order is placed with a common form that has the buying/selling price stated, and also the volume of stocks. The order is available for a day, or it remains in the market until it is cancelled by the investor. The orders can be transmitted to the broker by phone, email or by using the special platform put at your disposal by the broker.
