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How do you invest your money in the stock market? - 10 steps you should know

Investing in the stock market We all hear about investing in the stock market, but most of us do not know how to actually invest in it .. Some people have inherited ideas, such as that someone lost all his money in the stock market in minutes, or that a businessman committed suicide after losing the stock market, which created an impression Mentally wrong for the stock exchange.

The truth is that it is a market like any other market and the only difference is that this market is its commodity is the stock, whether "stocks or bonds" or otherwise, and no one can lose unless he sells what he owns at a price lower than what he bought like any market.

In order to invest your money in the stock market, you must perform several important measures, the first of which is to first register yourself with it, through what is called coding.

This means that you get a number that you deal with on the stock exchange, which is similar to the ID card number, which distinguishes an investor from another.

This figure is obtained by submitting an application to a financial brokerage company in return for a simple financial fee determined by each company that does not exceed $ 5.

As an investor, you cannot deal with the stock market directly, but it must be done through one of the brokerage firms that receive orders for you to buy and sell stocks.

Steps to invest in the stock market:

• At the beginning, you must determine the amount of money that you can use on the stock exchange so that these funds are in excess of your financial obligations and expenditures.

• After you have determined the amount of money in excess of your needs, beware, do not use them all to invest in the stock exchange, as a sudden circumstance may arise for your expenses that makes you have to sell at a loss to meet this need.

• After we have determined the net amount to be invested select Do you want long-term or short-term investment? A short-term investment in its simple sense means that you want to exit the market within a short period (for example, having a specific commitment) and vice versa for long-term investment.

• You then need to specify the investment method, whether it is in (bonds - stocks - treasury bills - investment funds documents - government bonds) and this can be done with the help of the brokerage company, as it provides you with the best way to invest in a manner that suits your financial capabilities.

• The brokerage firm can provide you with the necessary information about the exporting companies, such as: the sector to which you belong - its products - its future plans.

• After that, you determine the company or companies that you want to buy shares in and the price at which you want to buy, then ask the brokerage company to execute the order in the way you agreed upon, either by written order or over the phone.

• Then after that, if you want to sell these shares again, you also ask the brokerage company to sell in the previous method after determining the price at which you want to sell.

• After the legal period has passed on the sale process, according to the security that you bought or sold, the company settles the sale process and puts the transaction value in your account or pays the value of the process in the event of purchase.

Are you an investor or a speculator in the stock market?

The speculator is the one who buys the security when its price is low and sells it when the price rises, based on information about that issuing company.

The investor is the one who depends on the performance of the company in his decisions, and is considered a long-term investor, because it aims to achieve annual profits and also profits when the share price increases (capital gain), and this is the safest investment in the stock market, which is recommended.