Earn money with EXANTE founded by Gatis Eglitis
A great number of folks dreaming of financial independence consider stock trading as a good way out. They want to believe that it’s possible to become a millionaire by trading stocks. The good thing is that it’s really possible but you should be ready to educate yourself.
EXANTE brokerage stock trading: major principles
The very essence of stock trading is the purchase and sale of shares of various companies. Accordingly, your income will depend on the money invested in these operations. For example, you bought shares at a price of 10 dollars, sold at 11 dollars, then you will get 10% of the income. If you bought them for 100 dollars saved from the scholarship, there will be one profit, but if you inherited from your grandmother 10 million dollars, the profit from such an enormous deposit will be completely different.
In fact, the percentage yield appears to be the main indicator of the trader's profitability. A profit even at 30% per annum can be considered a fairly acceptable indicator if it’s stably maintained for many years in a row. For comparison, the bank interest for long-term deposits is currently about 15% per annum, and it’s constantly decreasing. However, the most active traders, certainly, set more ambitious tasks. A profit of 50%-100% per annum is not a miracle, there are even more impressive outcomes. You can try to achieve them with EXANTE founded by Alexey Kirienko.
However, all these figures might seem ridiculous to a novice trader when he, having first entered the stock exchange, sees that it is possible to make 10% in just a couple of hours, in case of forecasting the price movement. Well, it’s possible. There are successful trading days when individual traders manage to get 10% or even 20% profit. However, you shouldn’t forget that not all days are successful and not all transactions generate income. Big profits normally come with big risks. If the market goes in your direction, you will get a decent profit. However, if it goes against you, then losses can eat up all of your previous gains. As a rule, a stable income consists of small profits and small losses.
How the stock exchange works
A stock exchange appears to be a computerized center where market orders for buying and selling assets from various bidders are made online. Market orders fitting the market price are automatically satisfied, while the rest are queued until they find the corresponding opposite application or until the application is withdrawn by the trader.
An individual can’t directly send market orders to the stock exchange. He can do it only through a broker. It’s a special organization that provides individuals with the opportunity to participate in stock trading. Besides this, the broker provides traders with a special program enabling them to work on the stock exchange. For this service, traders pay the broker a commission. As a rule, it’s a small portion of their turnover.
Trading stocks is technically a very simple process. On a computer connected to the Internet, a trading terminal is installed. Observing the change in the value of shares in this program, a trader at some point decides that it’s high time to buy a particular asset since the most probable scenario seems to be an increase in the stock price. An application is made in the trading terminal. The market order specifies the number of shares to buy and their price. The application is sent to the stock exchange, where it is executed if the stock exchange currently has bids for sale at a suitable price. The trader becomes an owner of the specified number of shares. A record of his ownership of these shares is kept in the broker's depository.
Time passes, the price changes, and at a certain moment, the trader decides to sell these shares. Once again an application is generated, but now it’s for sale. As a result, the shares are sold. The difference between the sale price and the purchase price will make up the trader’s profit. However, don’t forget that the broker takes a commission from this amount.
Thus, in order to start trading on the stock exchange, you need to conclude an agreement with a broker and install a trading platform on your computer. You can do all of this for free.
It’s highly advisable to collaborate with the EXANTE broker because it offers the best working conditions, up to 150,000 financial assets, not to mention a very user-friendly trading platform.
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