HOW TO TRADE SHARES ON WORLD STOCK EXCHANGES
About profitable investment
For the one who has free financial resources, but has not invested them anywhere, it is about time to start investing money in stock exchange business that can be profitable. In this way, it is possible to provide additional income for the household budget, improve the standard of living and ensure a more certain future. With long-term monthly investments, it is possible to provide an infinite rent that will be the basis for a peaceful future (old age). You need to invest money wisely, persistently and in the long run, for your own benefit. And why not invest the money? The one who starts investing, has no reason to stop. Financial management is the process of developing and creating long-term financial plans in order to achieve financial success. It is specific to each individual and there is no universal recipe. Personal financial management helps each individual to achieve financial success and achieve personal financial goals, financial security and well-being by providing a sufficient amount of money for a comfortable and relaxed life. A good investor knows that based on his own choice, advice, portfolio manager or on the basis of exact budgets, he can decide on the desired investment model, ie investment portfolio so that the investment brings him the best return. The investment portfolio is a set of assets, ie a list of securities and other financial instruments in which money is invested in order to achieve the best possible return. When he decides to invest, the investor asks himself the question on what period he is investing his money, what kind of profit he wants to achieve by investing, what are his priorities. A portfolio can be individual when an investor invests in securities or other assets in the capital market or leaves the business to professional investment managers and advisors.
Investing in stock exchanges
Investing in the stock market requires, in addition to the intention to invest in the stock market, certain knowledge of trading on the stock market. First of all, the investment on the stock exchange can be realized only through a broker, who is obliged to have a license to perform brokerage activities, ie a license to work on the capital market. Licenses are issued by the Securities Commission, which also supervises stock exchange operations. Quick money and easy earnings are mostly what attract young people eager to succeed in the business world when the stock market and stock market investment are mentioned. However, there are many pitfalls and challenges that, if not avoided, can make a trip to the stock market very short-lived.
Therefore, before entering the process of investing in the capital market, it is important to know some of the most important rules such as:
- Study the movements on the stock exchange, create a demo portfolio and monitor the situation for at least a month. Some of the free online portfolio managers can be used for these purposes.
- One should read business magazines in which one can learn how stock exchanges work in the world and what are the events that affect the rise or fall of stock prices.
- Expectations must be realistic because in that way the chances of losing money or disappointment in the stock exchange business are reduced. It should be expected that more will be earned on stocks than through savings, because a much higher risk is taken. Currently, stocks are attractive all over the world due to the fact that interest rates on savings are minor, and in some countries they are even below zero, ie in the red, and money is looking for more attractive returns.
- Constant market monitoring is mandatory because we live in a global society and every significant event anywhere in the world affects our financial system. That is why it is important to constantly monitor and refresh your portfolio in accordance with changes in the market and your own wishes.
- The stock market is not a place to quickly generate money. Earnings on shares should be measured in the medium term, three to five years. Often one year for stocks can be great, another worse and so on, so you only need to invest for a longer period.
- Often changing decisions is not good, for a start, it is enough to buy three good actions,
- One of the most important rules of stock exchange trading is not to predict stock prices as well as how they will move in the future. Anyone who wants to trade on the stock exchange, whether a natural or legal person, must first choose a brokerage house through which to trade on the stock exchange. The choice of a broker is a significant step in the decision to invest on the stock exchange, because the profitability of a business such as investing on the stock exchange largely depends on that choice. Brokers are specialized business entities for mediation in stock trading, which are expected to be reliable in the field of investments (stock market investments). Monet broker offers investment instruments in securities of domestic and foreign companies. A brokerage house should be expected to be reliable, informative, businesslike and responsive to demands when it comes to investing in the stock market. In practical terms, the broker is obliged to present its way of doing business in a transparent manner in accordance with legal regulations, before the client makes an investment decision, ie before issuing his irrevocable order on a trade transaction, whether it is a sale of shares on the stock exchange or on their purchase. Above all, it should be taken into account that every shareholder who owns shares is also the owner of a company's capital, and ownership relations fall into a complex category, which imposes a greater need for a professional attitude towards work such as investing in the stock market.
Despite the fluctuations on the stock exchanges, stock market analysts believe that the stock market can make money, the only secret is that it is invested in the long run and that investments are large. In foreign markets, the American, European and Asian stock exchanges, the annual growth sometimes reaches 20 to 30, and even 40 percent.
Investments in foreign stock exchanges
BiH citizens can very easily trade shares on foreign stock exchanges, and in order to do that, they need investment capital and a broker through which they will participate in stock exchange trading. Owners of free funds have the opportunity to trade shares: "Apple", "Microsoft", "Amazon", "Coca-Cola", "Disney", "Facebook", BMW, "Deutsche Telekom", "Siemens", " Vodafone "," Daimler "... Simply put, it is possible to trade the shares of all major companies on the world's largest stock exchanges such as New York, London, Frankfurt ...
There are numerous advantages of trading on world stock exchanges due to the lack of exchange rate risk, the influence of domestic political and economic trends is neutral, there is great market liquidity because it is possible to buy and sell shares at any time. Investing in foreign stock exchanges can be done through domestic brokers, so that the domestic broker will forward the order to the foreign broker to place the intended funds on any stock exchange in the world. That money is invested in securities chosen by the investor, and the broker executes the order in the same way as it does on the domestic stock exchange. Today, there is a much greater opportunity to invest in foreign markets, which allows for much better investment diversification. The order is placed through a domestic broker, only the market in which it is invested is selected. Monitoring the world market requires much more knowledge and experience than investing in the domestic stock market. There are a number of non-internet sites through which you can follow how daily trading takes place on foreign stock exchanges, but due to the speed of changes, trading must be monitored much more carefully, to get to know the companies that are listed on that market.
For all clients who are beginners in trading on world securities markets, Monet broker provides free initial consultations regarding trading and investing.
More information on trading services on foreign capital markets, but also other services, can be obtained at the phone number 051 / 345-600, in person at the headquarters of "Monet broker" a.d. Banja Luka, 23a Jovana Dučića St., Banja Luka, Republic of Srpska, BiH and via the website www.monetbroker.com.
