How can I work in the stock market? / Part II

A good start is this;

 Prioritize personal learning and development.
 - To trade in the stock market, act calmly and control your emotions.
 Consider how professional traders and investors trade.
 - Observe risk and capital management and your first principle is to maintain capital.
 - To progress in this market, be willing to invest time and energy and pay the price.

The bad start is that;

 Start investing and trading in the stock market without even knowing the basics.
 Just look for  signals and advice from  seemingly professional people and do not check people's backgrounds.
 - Look for quick money.
 - Think the  scholarship is gambling  so there is no need to learn.
 - Do transactions out of emotion and hurry.
 - Until you had a profitable transaction, consider yourself the god of the stock market and enter the stock market by borrowing from banks and others and selling  your assets ! (Pure mistake)
 - Do not spend time and energy on learning and progress and expect to get it without paying the price for success.
 Do not be responsible and blame the market, the people and the major shareholder for your potential losses!

Step 1: Receive Trading Code ( Exchange Code )

To  trade in the stock market  you need an official broker and a trading code (also known as a stock code - stock code).

Brokerage companies are in fact the interface between you and the stock market and  are responsible for transferring stock buying and selling orders to the stock exchange trading system. This can be done manually by the broker or the investor can register the order directly by accessing the online trading software. 

The transaction code indicates your identity on the Tehran Stock Exchange. 

After registration and the necessary steps, usually after 3-4 days, the transaction code will be sent to your mobile phone and email and you can buy and sell stocks.

Note that the purchase and sale of shares on the stock exchange is done only through brokerage companies and in one of the following ways : 

• Visit the brokerage in person and submit a purchase or sale order
• Phone order to the brokerage, to buy or sell shares
• Online order to brokerage, to buy or sell stocks
• Direct purchase or sale of shares by the individual himself, through the online trading system (online)

Therefore, after opening an account in a brokerage, you do not necessarily need to go to the stock exchange  or brokerage to  buy and sell stocks ,  and the brokerages provide you with an online trading system.

In the online trading system, which is the best trading method, it is possible to buy and sell stocks instantly. This means that as soon as you place an order, the purchase or sale is made at the same time and the broker does not need to enter your orders in the trading system.

Benefits of  Online Stock Trading

• Speed ​​of decision making: Buying or selling can be done in a few seconds.
• Reduce differences between investor and broker and reduce mistakes: Because the investor sends his orders, he must gain skills in this area.
• High security of online transactions: If you choose the right password and do not give it to anyone, no one will be able to access it.
• Electronic money transfer: In the online trading panel, online payment is possible from your account to the brokerage account and you do not need to go to the bank.
• No time or place to invest: Wherever you are in the world, all you need is a computer or mobile phone connected to the Internet to be able to trade.

Technically, how to start online stock trading and buy and sell stocks is very simple, and even people with little knowledge of the Internet can buy and sell stocks through online systems.

Step 2: Learn the concepts and rules of the stock market

There is no activity in the world that does not require skills. For example, you may be wondering if the Tehran Stock Exchange is open 24 hours a day and the transaction is done? What is the difference between OTC and stock market  and such questions .

So investing in the stock market also requires learning some rules, terms and concepts.

Step 3: Learn how to analyze the market and make trades

After learning the basics of the stock market, you need to know which stocks or securities to buy and when to sell in order to make a profit. This is possible through learning market psychology, fundamental analysis and technical analysis, and at the same time learning requires experience and practice.

In this part of your trip in the world of stock market, you should spend the most energy and time because a wrong transaction for any reason will cause you to lose a large part of your capital. ..

Do not be afraid and know; Start small

After receiving the transaction code and reading the educational materials, it is better to work hard and buy shares for a very small amount (for example, 1 million Tomans) to get the buying and selling experience. Note that we do not expect you to benefit from this small amount, and this purchase is only to familiarize you with the trading process and the market.

Of course, this does not mean that you should buy the same number of shares without thinking and reviewing. Make the purchase using the tutorials you read on the Gold Cafe website, and after the purchase, check the share price trend. Read the news about the market and the company you bought the stock from, and sell your stock when you have determined and think it is appropriate.

In fact, the goal is to start investing and just enter the market. Buying stocks, albeit in small numbers, allows you to follow the market and start learning.

Warning :  Under no circumstances should you enter the main capital you have saved for investment without sufficient information and knowledge until you have a proper understanding of the market. Tehran Stock Exchange has a high risk for beginners and people who do not know enough about it and there is a possibility of losing a large part of capital.

So if you are new, we advise you not to do heavy and bulky transactions, start with low capital. Once you have the necessary information and experience, you can increase your investment in the market as your knowledge and information level increases. 

FAQ Vox :

Why should I enter the stock market with a small amount?

When you enter the market with a small amount, even if you lose a large percentage, because the initial capital is small, the amount of loss will be small. For example, if you bought 5 million tomans of shares, if you lose 10 percent, your loss will be only 500 thousand tomans. But when the amount of capital is high, the amount of loss will be higher. But on the other hand, the rate of profit with higher capital is higher.

I do not need to go to the stock exchange for stock trading, so where can I follow the stock trading process?

You can track stock trades online. The sites are only for  displaying prices and stock information  of listed companies, and as we have said, in order to trade, you must act through the online trading system provided by the brokerage.

Very important points in the stock market

1- Your first priority in the stock market should be to maintain capital, the second priority should be to preserve previous profits, and the third priority should be to make a profit. Preservation of capital is the most important principle because if you lose your capital, you have nothing to trade with and make a profit.

2- The market is not always positive and growing. Always be prepared for when the market goes negative and increase your knowledge to win in difficult situations.

3. Use the experiences of others and when you make a mistake, admit it, correct that mistake, and write down the great lesson you learned from it. Trading on a virtual stock exchange can help you test your stock selection skills.

4 - Factors such as fear, greed and other emotions are present in all people, but these cases become problematic when paralyzing the possibility of making the right decision and action from traders! When you make a decision, find out where it came from. From analysis and logic or from emotion, optimism or other factors