BASICS OF INVESTING ON THE STOCK EXCHANGE -BANK ACCOUNTS, LOANS
The Stock Exchange tempts many with its profits. If we invest our money well, it will turn out that our profits can be very high. Therefore, many people with financial surpluses are wondering whether to start multiplying them with the help of the Warsaw Stock Exchange. Is making money easy? Definitely not. If that were the case, everyone would invest their money on the WSE and everyone would only count their profits. The risk is very high here and you can easily lose your money. However, for many people the risk is not so important and they decide to start investing. If you belong to this group, read what you need to do to “enter” the Stock Exchange and make money from it.
What is the Stock Exchange
The Warsaw Stock Exchange is a place where we can buy or sell various types of securities. We include shares, bonds, pre-emptive rights, etc. The Warsaw Stock Exchange started its activity in 1991, and today it is one of the largest stock exchanges in Central Europe.
How to start investing on the Stock Exchange
If we want to start investing on the Warsaw Stock Exchange, first of all we need to know all the mechanisms that drive it. That’s why we have to read a few articles on this topic, learn the most important terms with which we meet during the trade (action, bull market, bear, technical analysis, fundamental analysis, etc.). Let’s find out what companies are entering individual stock market indices. Look how stocks behave over a longer period of time, what is their turnover, etc. Without this basic technical knowledge, there is nothing to start investing on the WSE.
Open a demo account
On the Internet, we can meet many websites offering free demo accounts on which we can trade virtual money on the Exchange. We will be able to include transactions of all kinds as in the real world, but we will not expose ourselves to possible losses due to inaccurate investments. Of course, our possible profits will also be virtual. Such a demo account will allow us to get to know all the mechanisms operating on the Stock Exchange and what is important, such a learning does not involve any risk.
Open a brokerage account
In order to be able to buy and sell shares listed on the Stock Exchange, we must have an open brokerage account. Simply put, it is an account where all information about our transactions is saved and the number of shares we have. So in order to buy shares, we need to supply our brokerage account with the appropriate amount of money and then buy it. A brokerage account can be opened in a bank or brokerage office.
Start buying and selling shares
If we already have an open brokerage account, nothing stops us from purchasing shares. The whole problem with investments on the stock market is related to choosing stocks that are cheap and will probably increase their value in the future. There is no answer as to how individual securities will behave, so buying them always involves risk. Therefore, by buying and selling shares, we can either earn a lot or lose a lot. For sure, therefore, an investment on the Stock Exchange is not recommended for people with weak nerves.
Is it worth investing money on the Warsaw Stock Exchange? Everyone has to answer this question himself. Certainly, it is a very risky investment, so you should consider well whether it is worth multiplying our money in this way.