Is it possible to make money investing in stocks?

Yes. People generally buy and sell shares through the use of a licensed brokerage firm or a broker that conducts trading. Historically, brokers were hired only by wealthy individuals and families, but today there is a wide range of securities brokerage for all price ranges. The so-called "full service" brokers offer a set of research, opinions and expert advice, and can offer a personal relationship between the intermediary and the client. For more budget-conscious customers, there are discount brokerages that offer a much more sparse service offer, in some cases simply by executing purchases and sales. In the last two decades, electronic commerce has grown significantly,

What is action really?
You have probably heard a popular definition of what an action is: "An action is a share in the ownership of a company, the action represents a claim on the assets and profits of the company. As it acquires more shares, its participation in the ownership of the company increases. " Unfortunately, this definition is incorrect in some key aspects.

For starters, shareholders do not own corporations; own shares issued by corporations. But corporations are a special type of organization because the law treats them as legal persons. In other words, corporations present taxes, can borrow, can own property, can be sued, etc. The idea that a corporation is a "person" means that the corporation owns its own assets. A corporate office filled with chairs and tables belongs to the corporation, and not to the shareholders.

As the company continues to grow, however, there often comes a point at which early investors become anxious to sell their shares and monetize the profits of their first investments. At the same time, the company itself may need more investment than the small number of private investors can offer. At this point, the company considers an initial public offering, or IPO, transforming it from a private company to a public company.

In addition to the public / private distinction, there are two types of shares that companies can issue: ordinary shares and preferred shares.

Preferred shares work in a similar way to bonds, and generally do not include voting rights (this may vary by company, but in many cases preferred shareholders do not have any voting rights). With preferred shares, investors are generally guaranteed a fixed perpetuity dividend. This is different from ordinary shares that have variable dividends that are declared by the board of directors and never guaranteed. In fact, many companies do not pay dividends to ordinary shares at all.

You have two options when buying shares
There are two options when you invest in stocks:

1. Own shares.

When stocks increase in value you get a small profit when selling them. It also makes a profit when dividends are paid for its shares.

2. Invest in stock trading in the stock market

In this case, he does not buy shares physically as an asset but buys a contract for the difference in price. This allows you to form an effective investment portfolio and obtain tangible gains in a shorter period, although stock prices change less intensively than, for example, currencies.

How to read a table of values ​​/ quote

High and low: these are the highest and lowest prices at which an action has been negotiated in the last 52 weeks (one year). This usually does not include the previous day's trade.
Company name and type of actions: this column lists the name of the company. If there are no special symbols or letters after the name, it is a common action. Different symbols imply different kinds of actions. For example, "pf" means that stocks are preferred shares.
Quotation symbol: this is the unique alphabetic name that identifies the action. If you watch financial television, you have seen that the ticker tape moves around the screen and quotes the most recent prices next to this symbol. If you are looking for stock quotes online, always look for a company with the quote symbol.
Dividend per share: indicates the annual payment of dividends per share. If this space is blank, the company does not currently pay dividends.
Dividend yield: the percentage yield of the dividend. Calculated as annual dividends per share divided by the price per share.
Price/earnings ratio: calculated by dividing the current price of the shares by the earnings per share of the last four quarters. For more details on how to interpret this, see our tutorial on the subject.
Trading volume: this figure shows the total number of shares traded for the day, listed in hundreds. To obtain the actual negotiated number, add "00" to the end of the number.
High and low of the day: indicates the price range that has been negotiated during the day. In other words, these are the maximum and minimum prices that people have paid for their shares.
Closing: the closing is the last trading price registered when the market closed on the day. If the closing price rises or falls more than 5% than the closing of the previous day, the full list of that action is in bold. Keep in mind that it is not guaranteed that you get this price if you buy the stocks the next day because of the price changes constantly (even after the exchange is closed during the day). The closing is simply an indicator of past performance and, except in extreme circumstances, serves as a stage of what you should pay.
Net change: this is the change in the dollar value of the share price from the closing price of the previous day. When you hear that an action is "ready for the day," it means that the net change was positive.


10 rules of investment in stock markets

The desire to earn large amounts of money has always thrown investors into the stock markets. However, making money in stocks is not easy. It not only requires lots of patience and discipline but also a lot of research and a solid understanding of the market, among others.

The key to success is the strategy in whatever form you choose to invest in stocks.

Although a sure formula for success in the stock markets has not yet been discovered, here are some golden rules that, if followed with caution, can increase your chances of obtaining good returns:

1. Avoid thinking like a sheep
The typical buyer's decision is often heavily influenced by the actions of their acquaintances, neighbors or relatives. Therefore, if all those nearby are investing in a particular stock, the tendency of potential investors is to do the same. But this strategy is bound to be counterproductive in the long term.

It is not necessary to say that you should always avoid thinking like a sheep if you do not want to lose your hard-earned money in stock exchanges. The world's largest investor, Warren Buffett, surely was not wrong when he said: "Be afraid when others are greedy and greedy when others fear!"

2. Make a decision with fundamentals
You should always conduct an appropriate investigation before investing in stocks, but that is rarely done. Investors generally take the name of a company or industry to which they belong. However, this is not the correct way to put the money in the stock market.

3. Invest in businesses that really understand
Never invest in action. Invest in a business instead. And invest in a business you understand. In other words, before investing in a company, you must know what business the company is in.

4. Do not try to control market times
One thing that even Warren Buffett does not do is try to control the times of the stock market, although he does have a very strong opinion about the appropriate price levels for individual stocks. However, most investors do exactly the opposite, something that financial planners have always been warning them to avoid and, therefore, lose the hard earned money in the process.

5. Follow a disciplined investment approach
Investors who invest money systematically, in the right actions and cling to their investments patiently have been generating exceptional returns. Therefore, it is prudent to have patience and follow a disciplined investment approach, in addition to taking into account a broad long-term vision.

6. Do not let emotions cloud your judgment
Many investors have lost money in the stock markets due to their inability to control emotions, particularly fear and greed. In a bull market, the appeal of quick wealth is hard to resist. Greed increases when investors hear stories of fabulous returns on the stock market in a short period of time. This leads them to speculate, buy shares of unknown companies or create heavy positions in the futures segment without really understanding the risks involved. Instead of creating wealth, these investors burn their fingers. In a bear market, on the other hand, investors panic and sell their shares at rock-bottom prices. Therefore, fear and greed are the worst emotions you feel when you invest, and it is better not to let yourself be guided by them.

7. Create a broad portfolio
The diversification of the portfolio in asset classes and instruments is the key factor in obtaining an optimal return on investments with minimal risk. The level of diversification depends on the risk-taking capacity of each investor.

8. Have realistic expectations
There is nothing wrong with having high expectations about your investments, but you may have problems if your financial objectives are based on unrealistic assumptions. For example, many actions have generated more than 50 percent of performance during the great run of recent years.

However, this does not mean that you should always expect the same type of performance from the stock markets. So, when Warren Buffett says that winning more than 12 percent in stocks is pure dumb luck and you laugh at that, you probably should not be laughing.

9. Invest only your surplus funds
If you want to take risks in a market as volatile as this, then see if you have surplus funds that you can afford to lose. It is not necessary that you lose money in the current scenario. Investments can also give you big profits in the coming months.

But nobody can be one hundred percent sure. That is why you will have to take risks. It is not necessary to say that it invests only if it is up to date with surplus funds.

10. Monitor rigorously
We are living in a global village. Any important event that occurs anywhere in the world has an impact on our financial markets.

If you decide to prove yourself as an investor and earn money with stock trading, Liberte is pleased to offer you favorable terms for the CFD trade. You must remember that any operation in the financial markets carries risks. To minimize the risks, Libertas offers a Demonstration account, through which you can simulate market operations without incurring losses, before feeling confident to perform real financial transactions.