Quick start in the stock market: 10 steps

In the comments to previous articles, we were asked to write a guide that would help newcomers to get used to the stock market faster and not lose all their money. We have been blogging on the hub for several months, so we have accumulated a number of useful, and not just entertaining, materials that will help in the first stage to better understand the structure of the stock market.

Step 0

First of all, you need to gain theoretical knowledge about stock trading and understand whether you need it? In solving this problem, our literature list will help you .

Step 1

But why go to the stock market, and say, not to Forex? The answer to this question is contained in two articles of ITinvest chairman Vladimir Twardovsky ( one , two ).

Step 2

First of all, it is necessary to understand how exactly exchange trading is organized in our country. In addition to exchanges, brokers and traders, among the players in the stock market not only in Russia but also in any country, there are regulators, self-regulatory organizations, registrars, depositories, clearing organizations and clearing centers, clearing houses and depositories.



The structure of the Russian stock market is described in more detail in two of our articles ( one , two ).

Step 3

Next, you should familiarize yourself with the phenomenon of a trading terminal .

Step 4

After a trader entered a purchase or sale request using the terminal, before entering the exchange, it enters the broker's trading system. Such systems are equipped with authorization and limiting tools that allow you to route the application to the market, as well as give the client information about its status and the current status of its portfolio. At the same time, it is important to know that most of the applications on modern exchanges are generated by special robots, for which broker systems have an API to connect .



Trading robots can make hundreds and thousands of orders within a few seconds, so the most important thing for them is speed. That is why the work on the scheme "user (robot) - brokerage system - the core of the exchange" cannot satisfy all traders - because it has an extra link in the form of a brokerage system. That is why technology has appeared that allows you to optimize this chain as much as possible - direct access to the exchange .

Step 5

After gaining theoretical skills and learning more about technology, many traders immediately go to trade - and lose money. We must move gradually. It was for such a smooth "engagement" in the specifics of the stock market and getting used to the chosen means of trading that the test or virtual exchange trading was invented .

Step 6

In addition to software, many traders pay attention to the "iron" component of work in the stock market. Therefore, before you seriously plunge into the world of stock exchange battles, it is worth exploring the assortment of gadgets for trading - who knows, maybe some tool will help you make more money.

Step 7

Stocks are far from the only things that can be bought or sold on the stock exchange. Surely you often heard the expression that stock speculators "make money from the air"? Surely, it was about derivatives . Without which, meanwhile, the normal functioning of the economy was much more difficult.

Step 8

In the modern stock market, there is no way to get away from the topic of algorithmic trading. Therefore, it will be useful to learn about the prospects of this area in the conditions of our country.

Step 9

Having dealt with the theory and prospects of algorithmic trading, it's time to pay attention to its practical component. From our topic you will learn with what software tools you can create a real trading robot (with an example).

Step 10

Do you still think that the stock market is a complete deception? Take a look at an example of a simple guy who, having gained some experience on the exchange, managed to apply him and his IT skills in order to earn half a million dollars a year ( first part , second part ).



That's all for today. In the near future, we will have new interesting technical articles on our blog (for example, on the development of our own trading terminal) and topics in which the structure of the stock market is examined more deeply. Thanks for attention!