Do you know how the Stock Exchange works? Do you know how to invest in the Stock Exchange? These seem to be tortuous trajectories, but they are much simpler than we imagine. We will understand the subject better in this article.
In summary, the Stock Exchange is the institution that organizes the stock market. It is a trading environment where investors can trade securities issued by companies. That’s when a company wants to raise money by selling papers. However, this process needs to be brokered by brokers.
What are the advantages?
In fact, investing in the Stock Exchange in 2019 has its risks. After all, the country is experiencing moments of instability. However, no other investment in the market can generate as much possibility of gains as the stock market. If you still have doubts about betting on this medium, we have listed some advantages:
Even with the transactions being made through a stockbroker, you do not lose your money invested in any way. Even if the broker goes bankrupt. This is because their securities are protected by CBLC (Companhia Brasileira de Liquidação e Custódia). Bovespa Supervisão de Mercados guarantees the security of its capital, after all, the system offers a benefit called MRP – Mechanism of Compensation for Losses. That is, if the broker really goes bankrupt, this fund has a guarantee of up to R $ 70 thousand.
Securities trading can be done online, that is, you only need a computer, a notebook or a smartphone and an internet access. After making an account with a broker, you will have access to the Home Broker, where the investments are made. In it, graphical analyzes are offered with the situation of the companies and the oscillations of the market.
The Stock Exchange is available to everyone. Depending on the case, with only R $ 100, you can now buy shares without the need to make more monthly deposits. Today, even with the economic crisis, it is possible to be a successful investor with easy interest rates and proven methods.
Perhaps the most attractive advantage for investing in the Stock Exchange in 2021, given that the change of government and the expectation of approval of reforms brings impetus to an economy in crisis. In addition, the market volatility is great, but knowing how to deal with it, it is possible to live off it and make big profits. However, it is necessary to have a discipline in operations and study the sector a lot.
Where to invest?
Since the goal is to make a profit, we need to buy shares at a low price and sell them at a higher price. So, we have to be precise in this choice and know exactly which asset to buy and decide the best way to sell.
Some companies can guarantee a good return on the Stock Exchange in 2021. There is, for example, a movement of privatizations that should make some state companies go into an upward bias, such as Petrobras, Eletrobras, Cemig and Banco do Brasil. They are practically certain bets that will make your bank account bigger at the end of the year.
What is the profitability?
The profitability of the Stock Exchange is very variable and depends on internal and external factors. Ways to profit from stocks go beyond the difference between the price of buying and selling them. Incredible as it may seem, even in the face of an apprehensive domestic scenario with the elections and the turbulent external scenario, the performance of the Brazilian stock market in 2018 was the best among the main indices in the world.
For the third year in a row, the Ibovespa closed higher, with an appreciation of 15.03%. In 2016 and 2017, the Bovespa Index had already registered gains of 38.9% and 26.86%, respectively. The stock market peak, however, occurred on May 20, 2008, when the Ibovespa reached 124,269 points.
However, 2018 was marked by a lot of volatility in share profitability. In January 2018, the stock market dropped 20%. On the other hand, this year, analysts are optimistic about the expectation of resumption of economic growth, approval of structural reforms, privatizations and maintenance of low interest rates. According to experts, this creates a favorable environment for new investments and high returns.
Minimum amount to invest
There is no minimum amount to invest in the Stock Exchange. What there are, in fact, are suitable options for all types of investors. In addition to the asset price, we must take into account other factors.
The shares, for example, are traded in lots, and each lot is equivalent to 100 shares. That is, if the title you intend to buy costs $ 1, you will spend $ 100. It is also possible to buy fractional lots, which allow small investors to get on the stock exchange. However, their liquidity is lower and the spread (which is the difference between the purchase and sale value) is higher.
Knowing how the Stock Exchange works is always unknown. As we said earlier, it depends a lot on several factors. The investment period for making big profits is usually long, but knowing how to invest on the Stock Exchange can vary a lot. It will depend on your strategy and the chosen investment modality. Check out:
- Day Trade: where investments are short, with a term of a few minutes, at most a few hours;
- Short Term: the investment lasts between 1 day and 2 weeks;
- Long Term: it is the one that usually generates the most profit, where the investment can last from weeks to years.
Now that you know how to invest in the Stock Exchange, it’s time to find out how much this “joke” costs. They are basically necessary fees to be paid. Get to know:
- Brokerage Fee: is the fee charged by the broker when you make a purchase or sale of shares. Payment is made for each transaction. That is, if you decide to buy shares and sell them right away, you will pay two brokerage fees.
- Custody Fee: this fee is charged by the Stock Exchange to keep its shares. There are, however, some brokers that already pay this amount to the investor.
- Fees: this is a fee that consists of a percentage of the price traded in the stock trade.
- Taxation: Income Tax is levied only on profits. With that, your loss can be deducted. The rate of IR on Day Trade operations is 20%. As for other operations, it is 15%.
What are the risks?
Anyone who does not yet know how to invest in the Stock Exchange needs to know that there are at least two main risks. Understand:
- Devaluation: the chosen stock does not devalue and you lose money;
- Liquidity: it is when you cannot find buyers willing to buy the security you want to trade.
So, now that you already know how the Stock Exchange works, how about investing in the stock market? The time has come to be a stock exchange investor in 2021.