It has become fashionable to play on the stock exchange: there is an opinion that the key word is not “stock exchange”, but “play”. But winning in the game is not only a matter of luck, but also preparation, strategy, and possession of information. What you need to know when entering into trading on the stock exchange?
It is hardly worth talking for a long time about the importance of mastering the key terms, as well as the professional jargon of stockbrokers. Do not be too lazy to learn the principles of the exchange on which you want to play, and do not consider it shameful to contact the trading gurus if you do not understand something. Experienced Traders they advise not to attach super-importance to quotes and prices and not to consider the current trend as unchanged. Many beginners, at the sight of a nicely curving quotes curve, begin to calculate how much they will earn on such and such a day, month, and almost a year.
But this is on paper, in life everything is far from being so indisputable and rosy. Experts warn that most of the failures when playing on the stock exchange are the result of a lack of knowledge and experience. So, novice traders are not able to correctly calculate the result of a particular transaction, they do not take into account many pitfalls, and when calculating losses, they do not take into account broker commissions or calculate commissions based on the amount of the transaction, and not profit.
Master the details
At the start of training, novice traders should learn the trading technique - as a test, you can bargain, for example, with your broker. At this stage, novice players must learn to bargain for a minimum commission for themselves, convincing the broker that he can get much more by constantly working with a client (novice). The fact is that a constant profit is a less risky, stable source, which makes sense to enlist in any case: for a one-time commission (even if very high), a broker can lose a client for the banal reason that this client leaves the game.
Stuffing a hand
Almost every novice trader grabs on to the saying “beginner is lucky”, forgetting that the exchange game is more like chess than cards. Therefore, the first advice: do not rush to risk real money!
Shooting on a virtual exchange will help to avoid serious losses and negative experience. By playing it, you will be able to better understand the rules of exchange operations, feel the specifics of this game, form key rules conduct operations without risk (or at least minimize this risk). In addition, trading on the stock exchange with "candy wrappers" makes it possible to get advice from experienced brokers. Having gained such valuable experience (and some advice from professionals), you will be able to minimize the risk of losing real money, which (remember this!) is very high for beginners.
Be prepared for mistakes
Unfortunately, even the most venerable players did not pass this stage at the time when they were beginners. Mistakes piled up, failures multiplied, the trader got nervous and aggravated his position even more, from a stock speculator he was forced to “retrain” into an investor - and as a result he received the very first margin call in his career. There is no need to be afraid of this - with a cool head and a sober calculation, you should continue the game, drawing a conclusion from the mistakes made. How can you not repeat them? Be sure to keep a "trader's diary": there you should record the results of each transaction, as well as its plan, worked out to the smallest detail. To stop your losses, place stops (sometimes it is better to do this ahead of time so that it is not too late) and in no case remove them. Draw detailed conclusions about the behavior of the market from each hit stop - remembering that all successful traders learn not by making profits, but by making mistakes.
As you gain experience, you will form a personal strategy - there is no doubt that you will not really want to share the most valuable experience on which it will be built. That is why in the public domain it is impossible to find universal guru advice for all difficult cases of stock exchange life. Of course, you can and should turn to professional colleagues, even when you have already gained solid experience: trading on the stock exchange is not based on blindly following the rules given in books on economics and articles on trading.
Universal rules of the trader
There is no "golden key" that will open the door to the world of super profits, just as there is no absolute truth in the world of quotes and trading. The exchange is an extremely changeable and dynamic environment, which, moreover, naturally evolves - all the strategies and developments that only yesterday brought fabulous profits are becoming ineffective, if not completely dangerous, today. Still, there are a few universal rules that must be followed. successful trader. They are especially important for beginners!
1. Carefully study the market and the behavior of its key players, as well as the political environment.
2. Thoroughly plan every trade - even one that seems not very significant. Work out the smallest details, prepare backup plans.
3. Stay optimistic even in cases of serious losses.
4. Keep your cool in any situation. Be patient and patient, do not take hasty steps.
5. Set yourself achievable goals. Having reached, complicate the task - increase the level of goals.
6. Buy on bad news, sell on good news. Don't be afraid to buy high and sell low.
7. Never take loans! For trading on the stock exchange - only personal funds.
8. Stick to 2% of the amount of capital available. This value of the acceptable degree of risk is calculated by experts. Going beyond it threatens to turn a reasonable business risk into a blind gamble.
9. In a sluggish market, take a wait-and-see position - and react only to a strong clear signal. Do not try to guess the top and bottom of the market: it is useless.
10. Don't trust trading robots promising lightning sky-high profits ...
… and never blindly accept advice that has not been tested by practical experience.
Successful start!
10/31/2013 | Rosfirm News Service
Contract financing
The Solev company offers a relatively new loan product- contract financing.
Distinctive feature given financial service on borrowing funds is that the funds are provided on the security of the rights of claims under the concluded contract.
This type of financing has long been used in a number of countries, helping businesses develop harmoniously and making them less dependent on unstable cash receipts from customers.
What is contract financing for?
Nowadays, many enterprises and organizations do not have enough funds to quickly complete the work, even if there are profitable contracts concluded.
The problem is that the receipt of funds from customers is sometimes delayed or, in general, the advance payment is not provided for in the contract, and the contractor has to carry out work on his own funds, which are often quite limited. Especially often this phenomenon occurs when performing large-scale construction and installation works, government supplies and the production of high-tech and expensive products with a long production cycle. This state of affairs is fraught with failure to meet the deadlines for the fulfillment of obligations, and large forfeits.
It is in order for enterprises to start work on time under the contract that this financing exists, which is most often in the form of a revolving credit line. This frees companies from the hassle of paying wages employees, and payments under supply and outsourcing contracts.
Advantages of contract financing
- It is possible to carry out lending to enterprises and organizations with a significant debt burden. The main condition in this case will be the conclusion of a contract with reliable customers (the state, enterprises oil and gas complex, large retail chains and industrial holdings)
- When financing a group of companies, it is possible to take into account not only financial condition individual company, but the group as a whole.
- No collateral is required, which can be quite problematic and involves the collection and provision a large number documents.
- It is possible to provide credit lines even to enterprises with relatively small turnover, which gives them the opportunity to develop economically and increase production volumes.
- Opening a revolving line of credit allows businesses to more freely manage their cash, re-borrow and repay debt at their own discretion. This relieves the company's management of the search for funds during the execution of the contract.
- renewable credit line can be opened opens immediately after the start of the contract, allowing you to quickly start work.
- Interest on this species lending is average for the market, which does not create an increased financial burden for the enterprise.
With all these benefits, contract financing will allow campaigns to expand and grow through large contracts while avoiding financial problems. This will increase profits and help create jobs and.
Of course, the best option will use own funds, after all, by investing his money in a business, an entrepreneur is not obliged to share the profit or deduct interest to anyone. But even in this case, he needs to analyze at least two options for obtaining funds:
- Founder's own funds . In this case we are talking about the personal money of the entrepreneur, that is, those funds that were not received as a result of doing business. However, it should be remembered that tax office may consider depositing any amounts into the current account legal entity as profit from sales. Therefore, in a bank announcement of a cash contribution, it should be indicated that cash are own.
- Profit . This is the most successful option for financing a business, because it assumes that entrepreneurial activity pays for itself without requiring additional investments.
But not every business manages to exist and develop at its own expense, especially at the beginning of the journey. Therefore, entrepreneurs often resort to searching for third-party sources to obtain the necessary amount of money.
External funding sources
In the event that the internal reserves of the company are not enough for business development, the entrepreneur has to turn to external counterparties.
- Funds of business partners or investors. This is a good option for receiving cash injections into a business project, but it is associated with some difficulties. Firstly, the search for an investor may not be successful right away, because you will have to prove to potential partners the profitability of your business, its prospects, backing up your words with a well-thought-out business plan.
- Proceeds from the sale of shares. Issuing shares is a complicated procedure. It includes several stages: establishment joint-stock company, state registration shares and their sale. By realizing the shares, the company gives away part of the right to own another person, but in return receives cash.
- Government funding business implemented in competitive forms:
- funding effective investment projects with a payback period of less than 2 years and related to the development of industries targeted for the country's economy, provided that equity the main investor (owner) at least 20%;
- financing within the framework of targeted state programs;
- financing of projects within the framework of state external borrowings etc.
- Trade (commercial) loan . Here we are talking about a loan that one company can provide to another. Most often businessmen use trade credit to defer payment for goods, raw materials or services provided.
- Bank loan - one of the most common methods of lending to an enterprise, because it has the following advantages: a relatively simple registration procedure, funds are not taxed, confidentiality, the bank cannot influence the work of the company (unlike partners). But there are also disadvantages: the presence of a bank loan increases the risk of bankruptcy of the company (you will have to regularly repay not only the debt, but also the interest), in most cases a pledge in the form of property is required.
- Loan. This alternative to a bank loan method of obtaining money is simple in design and differs minimum requirements to the borrower. But at the same time, the loan amount may be less (compared to bank loan), besides, it is issued on minimum term and under more high percent(from 15% per annum).
It is interesting
Private investors who prefer to finance startups, that is, companies in the earliest stages of their existence, received the original name - "business angels". This term was formed in the theatrical environment of New York at the beginning of the 20th century.
State support can also be implemented in the form preferential programs lending for small and medium-sized businesses, subsidies, tax incentives.
Entrepreneurship is a field of activity associated with significant investments, especially if a businessman strives for the constant development of his business. And one of the most common problems is the provision of public tenders and auctions. All of the above methods of financing a business, of course, have advantages, but there are also enough disadvantages. What if money is also needed for security?
Few people know what exists alternative way win the desired tender and do without credits and loans, providing yourself with a guarantee for the performance of the contract. These are the services of financial and consulting companies in the field of government orders, such as Tender-Garant. All you need is to provide a feasibility study for participation in the tender, after considering which the company will nominate itself for the competition. After winning, "Tender-Garant" concludes a subcontract with you, fully paying for the performance of the contract. For many, this method may be the only opportunity, adequate in terms of effort and cost, to get a profitable order and provide their company with a new incentive for stable development.
