[Don’t invest your last money. First, collect the notorious “airbag”, insists Anna Zaikina. So that in the event of force majeure, you do not have to urgently sell assets and withdraw money from the brokerage account. Plus, experts from the Central Bank on financial literacy recommend keeping some of the money in conservative instruments, like the same deposits. If only because the state guarantees the safety of the latter up to 1.4 million.
Don’t invest borrowed funds. In the stock market, it is possible to trade not with your own money, but using the funds of a broker (margin trading). But Igor Pimonov advises novice investors to resort to it.
Diversify your portfolio. Don’t focus on buying only one type of asset – the same stocks. At the school of the Moscow Stock Exchange, beginners are advised to make a portfolio of profitable, but more risky in the short term, stocks and less profitable, but more stable bonds. The diversity of the portfolio will compensate for the fall of one asset if it suddenly occurs. Plus, diversify within a set of assets of the same type. That is, buy shares of different companies from different industries.
Don’t invest in what you don’t understand. Otherwise, there is a high probability of incorrectly assessing the risks.
Try not to panic or succumb to the mass sentiment of buying or selling assets. The stock market is obviously risky and often unpredictable. It is important to stay in the know, but not to react impulsively to them.
What is an investment portfolio? And how to assemble it?
Essentially, a portfolio is the same long-term strategy that involves investing in different asset classes. At the same time, in a general sense, your financial portfolio can be called all the assets you have – real estate, car, currency, precious metals, etc.
The composition of the investment portfolio reflects the willingness to take risks: for example, the more stocks it contains, the more aggressive it is, and vice versa – the more bonds, the more conservative it is.
The first option may be suitable for long-term investments, because historically, in the long term, the stock market shows greater growth. The second option, on the contrary, is preferable for tasks for a relatively short time in which you do not want to take risks.
You can use the “age rule”, which says that bonds in your portfolio should be as old as you are. The shares, respectively, are 100 minus your age. That is, if the investor is 30 years old, then there should be 70% of stocks in the portfolio, and 30% of bonds. There are other calculation formulas, but the meaning of the rule is the same – the younger the investor and the more time he has to achieve the goal, the more he can afford risky, but more profitable in the long term assets – stocks and fewer more reliable, but less profitable – bonds. This ratio should change with age.First step: outline a circle
Investment advisers do not recommend that novice investors buy securities with low turnovers. There is a risk that they will not be sold quickly. Each expert has its own criteria for assessing liquidity. For example, Anna Lyukanova, an analyst at Alora, does not recommend buying securities with daily turnovers of less than $ 10 million. The criteria for evaluating Finam’s investment consultant, Andrey Stopunov, are even stricter – he believes that at first it is worth choosing securities from only out of the 50 most liquid ones.
Second step: select the sector
Having outlined the range of prospective investment objects, you can choose specific securities. Numerous analytical reports, some of which are published free of charge, and others are distributed by brokers between their clients, contain forecasts for the sectors. For example, Troika Dialog in its June review predicts growth in the infrastructure sector (oil service companies, construction companies and heavy engineering companies), the oil sector, and transmission and distribution companies.
Step three: choosing paper
How to select specific companies in sectors? You need to compare the market price with the fair one. Current market prices are considered to be influenced by supply and demand and are therefore subject to fluctuations reflecting momentary market sentiment. The fair price is calculated on the basis of fundamental data and tells how much the shares will cost if the emotional factor is excluded from the market price. For example, in the oil sector, Lukoil has one of the highest growth potential – 38%. The fair price, according to Troika Dialog’s estimates, is $ 73. And the current one is $ 53 (1662.95 according to the results of trading on the MICEX on June 17). Having estimated fair prices, we study the news background, trying to find the so-called drivers – news that can affect the price. For example, about mergers and acquisitions.
Fourth step: finding a moment to enter
If the paper itself is selected using fundamental analysis, then the moment to enter is best determined using technical analysis. “The simplest and most correct thing is to draw a trend,” Anna Lyukanova is sure. To understand what is happening, she also recommends evaluating trading volumes. For example, during the last three weeks the volumes of Lukoil shares were growing, the trend was upward. Lyukanova and Stopunov, without saying a word, recommend learning how to draw the so-called “moving” – the average and 21-day. The problem with this tool is that it gives false signals if there is no pronounced trend in the market.
Fifth step: determine how much we invest
Portfolio theory was formulated back in the fifties of the last century by the Nobel laureate in economics Harry Markowitz. The essence of his approach is that the return on securities is considered as a random variable, while the mathematical expectation is an analogue of the expected return, and the standard deviation is a measure of risk. Taking this theory into account, Otkrytie’s investment consultant Boris Blokhin does not recommend that a novice investor invest more than 15% of a portfolio in one security.
Sixth step: finding the exit point
Stopunov recommends to determine in advance the price of the shares, upon falling to which they will be immediately sold. Within the framework of the established corridor, he recommends to be patient and not waste time on trifles. True, this is not always easy. Researchers of the theory of chances agree that on the Russian stock market, like nowhere else, there are many factors that can change the trend at lightning speed (for example, Putin’s proposal to send doctors to Mechel, which in two days brought down the prices