Let's start trading on the stock exchange from scratch: Step-by-step action plan

Unemployed Russians who have been unable to find a new job on their own can use the services of territorial employment centers. By registering with such an institution for the period of selecting a suitable job, citizens will receive a cash benefit.

The size of the benefit will depend on average past earnings, as well as the age of the applicant. At the same time, the legislation clearly regulates how long you can stand at the employment center with the possibility of receiving monetary compensation.

Who can register

For citizens of the Russian Federation who have lost their jobs, the state provides every possible assistance during the period of new employment. Unemployment status allows you to receive financial assistance from the state for a certain period until your own source of income arises.

To obtain unemployed status, a citizen must meet certain criteria:

1. Be an adult . The job applicant must be over 16 years of age.
2. Have the ability to work . In this case, it is worth considering physical capacity, as well as the absence of any restrictions or medical contraindications. It is worth noting that the state establishes and pays cash benefits to citizens with physical disabilities as disabled people.
3. The desire to work and earn income . Here it is necessary to indicate that listing on the stock exchange simply for the sake of receiving money will not work. We will have to really respond to offers coming from the labor exchange. A valid reason for refusal can only be the employer’s reluctance to hire an employee on its staff.

It should be noted that in order to be listed on the stock exchange, a citizen will have to provide inspectors with a certain package of documents. It includes the following items:

• document confirming the identity of the applicant. Usually this is a passport
• employment history. Applies only to citizens who have previously had an employment relationship
• taxpayer certificate. Issued by tax authorities
• a certificate from the last place of work indicating the average income received by the citizen
• certificate, diploma of education (if available)
• insurance certificate

After this, you must personally contact the employment service and provide an authorized employee with an application with the list of documents described above. After checking and confirming them, the citizen will receive unemployed status.

Remember, having unemployed status does not mean that a person will only receive financial assistance from the state. Here you will have to follow a regime and certain rules of behavior, as well as respond to job offers.

What do traders actually do?

They do two things: they try to predict the future and they take money from each other.

Predict the future

To make money, a trader must make a forecast. For example, how the price of the dollar will change, how the share price of Gazprom or Sberbank will change. And based on your forecast, make a deal - open either up or down.

Traders try to predict the future in two ways - technical and fundamental analysis.

Technical analysis is when I look at a chart and make a prediction. There are a lot of different methods in this analytical direction. For example, here is an analysis based on support and resistance levels:

The price seems to rely on invisible lines and pushes away from them.

Here is an analysis based on Fibonacci levels.

And so on.

Fundamental analysis is when a trader studies the overall health of the economy. And makes a forecast. For example, the news comes out that Donald Trump is losing the election - the trader immediately thinks whether the ruble will fall in price against the dollar or rise in price. The news came out about the closure of borders due to Covid - the trader also thinks whether airline shares will fall in price or not.

Then, based on their forecasts, traders open trades. If the forecast is correct, they make money; if it is wrong, they lose money.

They take money from each other

Where do market traders get money from? From other traders. For me to make money on a change in exchange rate, someone else must lose money on it. That is, I will make the correct prediction, and you, for example, will make the wrong one. You will lose money on your forecast, and I will receive it.

Let's summarize

Traders in the market do two things - try to predict the future and take money from each other.

Registration rules

You can contact the employment center at any time. At the same time, the period of registration and the amount of benefits received will directly depend on the period of application. It is worth noting that submitting an application with the necessary documents does not guarantee 100% registration and assignment of unemployed status. The procedure includes the following steps:

1. Checking the complete list of submitted documents. At this stage, only the fact of the presence of documents required by law will be checked. This is enough to register the application and accept it for work.
2. Verifying the legality of obtaining unemployed status. If a citizen is already receiving assistance from the state, he is not entitled to additional payments. As a rule, this applies to old-age pensioners. But this does not mean at all that such a citizen does not have the right to find a job independently and continue to receive additional income. Registration and payment of compensation will also be refused if it is discovered that the citizen has a permanent source of income.
3. Violation of the registration regime. It is stipulated that while registering and receiving payments, an unemployed person must visit the employment center at least twice a month and inquire about the availability of suitable vacancies. If such are present, he is sent for an interview with a potential employer. The reason for a potential employer’s refusal to employ an applicant may be considered valid.
4. Passing the procedure for verifying the authenticity of the documents provided. This is carried out only in cases where an authorized person suspects a counterfeit. Only special experts can make final conclusions.

Remember, if violations are detected, the citizen is immediately deregistered and payments are stopped. In some cases (if there was falsification or deception), the perpetrator may be required to compensate for losses incurred by the state.

What is an exchange in simple words

An exchange is a platform where financial assets are traded.

There are different types of exchanges:

• Stock (shares, bonds);
• Foreign exchange (all currencies);
• Commodity (commodities, food);
• Futures (futures and options, otherwise called: derivative financial instruments or derivatives);
• Forex (currencies, gold, indices);
• Cryptocurrency (all virtual cryptocoins: Bitcoin, Litecoin, Ethereum, Ripple);

Each of them trades different types of assets. You can make money everywhere. Each exchange has its own specifics and risks.

Most often, earnings come from the difference between buying and selling an asset. Bought cheaper, sold more expensive. The difference between the sale and purchase price is profit.

Let's list the basic concepts for making money on the stock exchange that beginners need to know:

1. A trader is a participant in exchange trading who makes money on the difference between the purchase and sale prices;
2. A broker is an intermediate link between the trader and the exchange. It provides access to trading terminals, compiles reports for the client;
3. Investors are long-term participants in trading. They invest money for a long period of time to earn from dividends and price growth;
4. Trading - a variety of trading operations for the purchase and sale of assets for the purpose of earning money;
5. Margin trading is trading using borrowed funds from a broker;

Traders and brokers are completely different people; they should not be confused.

How many times can you register?

Being registered with the employment center does not only mean receiving cash benefits. The center’s specialists, together with the unemployed, must solve the problem of his further employment. A wide variety of options can be considered here, even those that do not correspond to the citizen’s initial qualifications and work experience.

A certain period is allotted for searching for a job, during which cash benefits are paid. Upon completion, the citizen can continue to be registered, but he will not receive money for this. In order to resume payments again, you will need to deregister, and then, if by that time you still haven’t found a job, you will need to register again after a six-month period. Then the right to receive payments arises again. But their size will be significantly reduced.

Remember, if you take six-month breaks, as well as periodically go to suitable work, the number of times you can register with the labor exchange is not limited. Until retirement age (old age).

Why you can’t make money from trading

There are two reasons.

You can't predict the future

Nobody knows the future. No one at all. Unexpected news can instantly collapse the markets, and no one will be prepared for it. So traders traded the Turkish lira, traded and traded, everything was fine. Then suddenly the news comes out - the Turks tried to overthrow Erdogan. And the lira exchange rate collapsed.

Or here is an example with the Swiss franc. On Sunday, the Swiss government decided to stop keeping the franc at the same level as the dollar. None of the traders expected this at all. On Monday morning the picture at the market was like this:

How could this be predicted by technical or fundamental analytics? Not at all.

Secondly, the price is influenced by a huge number of factors. For example, Trump lost the election to Biden - how will the ruble react? Let's say the ruble falls. What if at this moment all EU countries accept the Russian coronavirus vaccine? What if oil suddenly starts to rise, and the ruble strengthens along with it? What if America is overwhelmed by a wave of unrest and the dollar, on the contrary, weakens against the ruble?

How to make sense of all this mess? Each analyst will understand it differently. And some of the traders will “guess” and make money, others will “not guess” and lose money.

No one will just give away their money

If you decide to become a trader, you decide to take money from other traders in the market.

Opening an account for trading means saying: “I’m the only smart one, and you’re all stupid. Now your money will be mine."

Do you think this might be true? How can you be smarter than millions of people, analysts, stock speculators with higher economic education who trade on the stock exchange? No.

They are much smarter than you. And they are not going to give you their money just like that.

If you saw a trend in the market and decided to trade with the trend, do you think that other traders are blind and do not see it? If you read the news about border closures, do you think other speculators don't know about it? Actually, there are thousands of people who learned about this border closure long before the journalists and long before you.

Understand two simple things

• You can't predict the future.
• You are not the smartest.

Suitable job

It is not without reason that with identification documents, the legislator obligated potential applicants to provide employment centers with information about past work experience, level of education, and the availability of various diplomas. These documents will be used in the future to search for suitable vacancies for the unemployed. The procedure will take into account the following features:

1. First of all, vacancies will be offered that, in terms of work experience and education, fully correspond to the candidate’s profile. For example, an accountant with an economics education will be offered available vacancies for accountants and economists.
2. If there are no vacancies that fully satisfy the applicant’s requirements, they can choose one of the criteria (work experience or previous education). But here the likelihood of refusal to employ such an employee by the company administration increases significantly.
3. If there are no suitable vacancies at the labor exchange due to the specific nature of previous education or existing work experience, the citizen may be offered to take a special training course at the expense of the employment service. This will allow you to gain new skills, which may be useful in the process of further employment.
4. During the period of registration, situations may arise when a citizen will be sent to participate in paid work of a public nature. Such activities may be radically different from past experience and education. But refusal to do such activities risks deregistration as unemployed.

Myths

The economic literacy of the population is on average quite low, and this is where numerous myths about the work of stock exchanges come from:

• “Securities exchanges are a scam.” Private investment is still not very common in Russia, and therefore many people retain Soviet prejudices. Just remember the negative connotation of the word “speculator”. In fact, the stock exchange is a key element of the state and global economy. In Western countries (and especially in America), where private investors are the norm and not an aberration, every family has experience working on the stock exchange. People have basic financial literacy and in this way provide themselves with a small but stable passive income. The Moscow Exchange is no different from Western ones.
• “Trading on stock exchanges is like playing in a casino.” Indeed, there is a certain amount of chance, luck or bad luck in trading. Even the most experienced and educated trader will not be able to predict the movement of any asset with 100% probability - something unexpected can always intervene at the wrong moment, which will greatly affect the price of the asset. But, unlike a casino, where blind chance decides absolutely everything, on the stock exchange you have every opportunity to reduce risks. Read on this topic: “Fixed interest trading“.
• "All brokers are scammers." There really are scammers among them. But protecting yourself from them is much easier than you think. A broker is a licensed organization whose activities are controlled and regulated by the state. In order not to stumble upon scammers, it is enough to check for a license from the Central Bank of Russia. Please note that to work on the Moscow Exchange you need a license from a Russian bank - foreign financial organizations are not suitable for this. By the way, the Moscow Exchange itself offers a list of brokers with whom it works—you can choose your representative on the securities market from them.

It’s possible to make money on the stock exchange, and even a beginner can do it. But you should not create illusions about the amount of earnings - at first you are unlikely to be able to earn more than the subsistence level. But once you get started, you can grow as a trader or investor, and over time your average monthly income will increase.

I hope this article has helped you take a more sober look at your capabilities - share it on social networks with your friends to spread an adequate and realistic idea of ​​​​working with the stock exchange.

Benefit amount

The amount of unemployment benefits a citizen is entitled to depends on several factors. First of all, this is the level of income received from the last place of work, as well as the duration of being registered with the employment service. At the same time, at the legislative level, a restriction has been introduced on the amounts of minimum and maximum payments entitled to citizens as assistance until the moment of official employment. Here it is worth highlighting the following points:

• The minimum monthly payment amount is 1500 rubles
• the maximum payment amount cannot be higher than 8,000 rubles per month
• for persons of pre-retirement age, the maximum amount of payments can be 11,280 rubles every month

It is worth noting that persons of pre-retirement age should be considered citizens who have no more than 5 years left before the official registration of an old-age pension. In addition, for residents of the northern regions, the maximum and minimum sizes are adjusted by a regional coefficient, which can reach position “2”, that is, double.

It is important to note that the restrictions introduced apply to all types of accruals. This means that no matter how much income a citizen receives (even 10, 20, 30 thousand rubles and more), no one will pay more than the maximum amount of payments. In essence, this is the ceiling to which you should focus in case of job loss.

How long does it take to learn how to make money on the stock exchange?

This is a very general question and difficult to answer. On average, a newcomer needs about six to ten months to get comfortable on the stock exchange and start earning earnings comparable to the salary of an average manager. Some people learn faster and others slower, and that's normal. If you fail to receive at least ten thousand rubles in the first three months, it’s not a big deal; most people go through this period.

The speed of learning largely depends on the method. There are three main ways to study the market:

• on one's own. You take a lot of risk by choosing this method, because without fundamental knowledge of the market it will be very difficult for you to predict prices. Getting an income is quite possible, but don’t expect it to be big - without a theoretical basis, you will probably make a lot of mistakes;
• using advice from the Internet. Here, depending on your luck, the advice can turn out to be both practical and destructive for your capital;
• with the help of a mentor. A more experienced trader can accompany your transactions, give practical advice, while simultaneously explaining the theoretical basis. This is the most effective way of learning and usually takes several months. To study the exchange with a mentor, you can contact me - I have been teaching traders since 2011.

Choosing a brokerage company

There is no universal advice on how to choose a brokerage company. Therefore, before making a decision, you have to familiarize yourself with a large amount of information about potential partners.

What you should pay attention to:

• brokerage commission size;
• software level;
• range of services provided;
• reviews on the Internet from live traders.

Many brokers provide a package. You can select several companies and conduct a comparative analysis before making a decision, assessing the prospects for further cooperation.

Evaluate the following qualities of a brokerage company:

• recommendations from experienced traders;
• experience in the market;
• authority in professional circles.

Trading strategies in the securities market

Every trading strategy is based on two principles:

• increase in profits;
• risk reduction.

These factors are opposed to each other, since every big risk is crowned with a theoretical opportunity to make decent money. And vice versa, the smaller the possible profit, the lower the risks in achieving it.

Each investor sets himself the task of choosing a strategy in which risk and profitability factors will be optimally comparable.

There are strategies:

• conservative (recommended for beginners, risk level is minimal);
• aggressive;
• moderately aggressive.

ATTENTION!

If you are just starting your journey in this business, then it would be better to seek help in drawing up a good trading strategy from a successful trader who has been conducting large transactions for more than one year. On the Internet you can find plenty of video material with step-by-step training in trading from experienced professionals in this business.

Speculate or invest?

Before you begin studying this guide, decide on your trading style. You must clearly answer the question: who are you first of all - an investor or a speculator? This answer will determine not only the trading style that you will adhere to, but also, ultimately, the very likelihood of whether you will achieve your goal or remain an eternal player chasing a momentary opportunity to make money.

Many, many people who come across stock trading for the first time take it for an exciting game in which they need to buy something every minute (cheaper) or sell it (naturally, more expensive). In many ways, this understanding is imposed on them by those who directly benefit from this, namely brokers, dealers, and the exchange platforms themselves. They all receive their profit in proportion to the number of transactions made (the more there are, the greater the profit), regardless of whether the players who made them earn money or suffer losses.

I’ll tell you straight, if you are new to stock trading, then don’t even think about speculation, forget about the derivatives market and focus your attention exclusively on stocks and bonds. At the same time, allocate exactly as much as you can afford to spend on their purchase and immediately aim for an investment horizon of 3 years and above. In this case, you will really have every chance of success and will be able to lay a reliable foundation for your further activities on the path of investment.

If you can’t wait to tickle your nerves with a game (namely a GAME - I didn’t use this word here in vain) on the stock exchange, well, passion is inherent in a person and the desire for it is inherent in his very nature (for some, more, and for others then to a lesser extent). Play, but be aware of what you are playing. In other words, be prepared to take on more risk and the fact that any game can lead not only to victory, but also to defeat. And since, in fact, the entire market will act as your opponent (which you hope to beat), then the chances of winning will be appropriate. Here you can easily win once or twice, but rarely does anyone succeed in making money from this in the more or less long term.

It’s not for nothing that I brought this question to the beginning of this guide, because, I repeat, the answer to it will largely determine your fate on the stock exchange. Whatever trading style you ultimately choose, all the steps described below will be relevant to you. True, some of them are to a greater extent, while others are to a lesser extent. Eg:

• You need the ability to analyze the market in any case. For a long-term investor, fundamental analysis of the market is more important; he may not pay much attention to current fluctuations in the price chart. But a speculator cannot do without this; he must master at least the basics of technical analysis.
• For both speculators and investors, such an aspect of trading as money management (in English-language literature it is called Money Management) is important. However, if compliance with these rules is not so critical for an investor (provided, of course, he has a well-diversified portfolio), then for a speculator they are certainly vital.
• Trading on a demo account is of decisive importance for a speculator (here he can fully test all his strategies), but is not so important for an investor. But for a long-term investor, for obvious reasons, it makes no sense at all.

Three types of markets for making money

1. Forex;
2. Stock market;
3. Cryptocurrency;

All can be traded remotely through applications on smartphones. You can register with brokers from home. Let's take a closer look at their differences and similarities.

2.1. Forex

Forex (“Forex”, from the English FOReign EXchange - “foreign exchange”) is the world’s largest trading platform for interbank international currency exchange at market prices.

Most beginners begin their acquaintance with stock trading through Forex. This is due to the fact that Forex brokers are actively advertised on the Internet. It's hard not to notice them. It's rare to see advertisements for stock brokers.

You can make money on Forex only through currency speculation. This is the main purpose of this site.

Forex statistics are sad: 95% of traders lose money. Although in advertising you can see almost mountains of money from the players. These are just tricks of Forex brokers.

Almost always Forex brokers offer large bonuses for replenishing your account. For example, 100% on deposit. In fact, this money is not given to the client. To get them you need to make a colossal turnover of 1000 of your deposits.

Forex broker bonuses are just a bait. Actually getting this money is almost an impossible task.

The Forex market is primarily about trading currency pairs:

• EURUSD;
• GPBUSD;
• USDJPY;
• USDCHF;
• CADUSD;
• etc.;

Reliable Forex brokers for making money from trading:

• ROBOFOREX
• FOREX4YOU
• AMARKETS

Pros of the Forex market:

• Maximum availability;
• You can start with minimum deposits;
• Large leverage available;

Minuses:

• Suitable for trading only;
• Most people lose money in Forex;
• Takes a lot of time;
• There are fees for moving a position overnight;

• Forex - what is it;
• How to make money on Forex from scratch;
• Forex for beginners;

2.2. Stock market

The stock market (from the English “stock market”) is an open securities market where each participant can sell and buy financial assets. Sometimes it is also called the financial market or stock exchange. Abbreviated as FR.

Unlike Forex, financial assets in the stock market tend to grow. Therefore, if you simply buy stocks and bonds, then over a long period of time the investor will most likely make money.

Statistics say that the average growth of the stock market per year is 10-15% per annum. However, individual years can bring serious losses up to minus 90% or more. For example, this was the case during the financial crisis of 2007-2008. But then there is a sharp recovery in stock prices.

The stock market is regulated by law, so investors' funds are protected.

Investors can invest in real businesses through securities.

What is traded on the stock market:

• Shares (domestic and foreign);
• Bonds (government bonds, corporate, Eurobonds);
• ETF funds (stock indexes, bonds, mixed, commodities);
• Options (exchange options PUT and CALL);
• Futures (for stocks, indices, commodities);
• Currencies (dollars, euros, yuan, francs, etc.);

• Stock market - what is it;
• Issue-grade securities;
• Types of shares;
• Debt securities;
• Dividends - how to get them;
• Is it possible to earn money from investments?

The stock market was not particularly popular until 2021. In 2020, advertising for stock brokers grew strongly. This is due to the influx of new clients due to the lowering of the key interest rate by the Central Bank. Keeping money in deposits has become too unprofitable and citizens are looking for ways to earn more.

2.3. Cryptocurrency market

Cryptocurrency exchanges (cryptoexchanges) are sites that provide cryptocurrency trading services.

This market is very young. Its dawn came in 2021 with a rapid increase in the value of cryptocurrencies by 50 and even 200 times. Since then, many coins have fallen by 90% or more.

Cryptocurrencies are digital money. Although it is difficult to call them money, since they are not recognized by anyone. Officially, no one can accept them.

The volatility in the cryptocurrency market is simply off the charts. Stock prices can rise and fall rapidly. This is very popular with speculators who can make money quickly, but someone loses on this.

If you want to actively trade with high volatility, then crypto exchanges allow you to do this. High liquidity allows you to quickly make transactions with minimal commissions, and high volatility allows you to quickly take profits.

There are many crypto exchanges on the Internet. But in fact, there are only a few leaders for cryptocurrency trading:

• BINANCE (the largest exchange in the world, there are only cryptocurrencies)
• EXMO (best exchange in Russian)
• BITMEX (possibility of margin trading and bearish play)
• YOBIT

They have mobile apps to make transactions anywhere.

• Trading on the cryptocurrency exchange for beginners;
• What is cryptocurrency;
• Top cryptocurrency exchanges;
• How to make money on cryptocurrency;

Bitcoin was once worth less than a cent. At the time of 2021, its quotation has already exceeded 30 thousand dollars. This is an extremely risky investment. You can lose 100% of your funds, but there is also potential for profit. This tool is for professionals.

There are 4 popular cryptocurrencies with high volatility and a long history:

• Bitcoin;
• Ethereum;
• Litecoin;
• Ripple;