Forex course

Is it even necessary to take a Forex course?

Many people who hear about Forex are questioning the need to take a FOREX course. Is it that important? Is not it enough just to watch videos? Take a good strategy and test a little?

In fact just like a lawyer, it is not enough to read the constitution or know the laws to be a lawyer, also a Forex trader will not be able to negotiate only knowing a strategy and watching videos.

Any financial market has its characteristics and beyond the tools (strategies, signals , robots , platforms, etc), the knowledge that a trader has to go far beyond the knowledge of these tools.

It is necessary to know the trading rules. It is crucial to know how to manage emotions and control your mind. It is imperative to work in a disciplined way.

Without all of this, you will never succeed, trading Forex, Stock Market, Binary Options or any other market or financial instrument.

For all the reasons I just mentioned, the answer is yes: You need a Forex course!
Forex Course - Which To Choose?

There are lots of Forex courses. The free of the two one, either are not good or are not really free.

There are sponsored courses, which means the course is offered as long as you open a brokerage with an Affiliate Link. Then the broker pays a commission to the owner of the Forex course and then he passes the course.

The best courses are paid. But even then, many are not good enough, will pay, but then in the end the knowledge will be insufficient to be prepared to have results.

Be careful in choosing and try to choose above all else by the teacher, if he inspires confidence, if you have experience, if the course is live or in video conference. Forget the courses in digital format like e-book.
Forex Course - What is the best format?

No doubt the best course would be the live forex course. But these usually cost a lot of money.

If you do not have a lot of money to invest in a course, try a course with video lessons, video conferencing, skype type or conference rooms.

Since there is no course available or worth more than you can afford, try the video courses. But in this case make sure that the teacher is an experienced trader and that the course is complete. If it is possible to have live support with the teacher to ask questions would be ideal.

Most courses are through e-books. Escape from these, besides being a drought, will not learn enough so that you can get results.
Forex Course - Our Selection

Of the various courses available in Portuguese we have selected 2 which seem ideal to beginners.
Course 1 - Forex Without Stress - Price Action For Forex Trading Swing

Here are the course modules:

1. Introduction: platform configuration and important issues involving Forex.
2. Price Action: introduction to price action and the fundamentals of the method
3. Brackets and Resistors that Work: How to Determine Brackets and Resistors
4. Reading Candles: What really matters about reading candles and what you will look for in the chart
6. Live Operations: recordings of operations using the method
7. Bonus: other Forex related issues
Total hours: about 14 hours
Price: R $ 579,99 / USD 155 - You can pay up to 12x (installments accepted only in Brazil)
Knowing the FOREX Course 1
Course 2 - Complete Online Forex Course

Here are the course modules:

The Online Forex Course consists of 120 lessons divided into 12 modules:

Module 1 - Where It All Begins: In this module you learn the basics of the Forex market.

Module 2 - Resolving the Bureaucratic Issues: sending money, profit statement ... your doubts answered

Module 3 - Preparing Your Mind: It is in the trader's mind that your main focus lies, and here are tips on how to approach the market.

Module 4 - Price Action: the main subject of the course, how you will face practice and read the Forex market.

Module 5 - Operations Strategies: Here you learn how to operate in the market with ways to enter and exit the market safely.

Module 6 - Structuring Your Method - creating a method to operate in the market has several requirements and here you learn how to create yours.

Module 7 - Managing Your Money: Risk management and capital management are indispensable to success. Learn in this module how to master it.

Module 8 - Entering the Operations Room: what you need to get into the operating room from time to time.

Module 9 - Practice Oriented Operations: personalized monitoring to boost your performance.

Module 10 - Bonus Issues: accessory subjects for your trading with examples of operations and deepening of topics already treated.

Module 11 - Turbinando Your Method: advanced topics for those who have already started in the market.

Module 12 - Price Action method by Oliver Velez
Total hours: about 25 hours

How to buy stocks (Investment funds)

How to Buy Stocks in 3 Simple Steps

One of the questions I get most in the email is about stock. To be honest, I do not know exactly why, but I believe that the stock market generates expectations of high gains in the minds of people and also an idea that it is a very risky market for a few.

The truth is that investing in the stock market is not that complicated ...

At the end of this article you will learn how to buy stocks in 3 simple steps and you will see that it is much simpler than you think.

What are Actions

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Before we know how to buy stocks we need to understand what stocks are.

When we buy a share we are buying a portion of a particular company, that is, we are becoming a partner in this business . As a consequence, we have several rights, for example, we have a stake in the company's profits.

It's as if we've bought a stake in a restaurant, a grocery store, or any other business. If the business appreciates, our participation will also appreciate. Just as if the business starts to distribute many profits, we will have a stake in those revenues.

Understood this, let's see how we can buy shares of the most diverse companies. I'll cover some ways to buy stocks on the stock exchange, since this way allows everyone to participate unrestricted.

The 4 Different Ways to Buy Stocks

Today I basically see 4 different ways to buy stocks . Among them we can mention: Investment funds, Investment clubs, ETFs and set up a stock portfolio. They all have advantages and disadvantages. So it is important to know these 4 ways to invest and select which are the most appropriate for our profile.

    "There is no better investment, since investment is a MEANS, not a FIM. For each profile and for each situation there is a more adequate investment. "

1) Investment funds

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When we invest in mutual funds, we are buying quotas from an investment portfolio set up by a professional manager. This manager buys and sells the assets as he thinks most interesting as long as what he does is in accordance with the policies of the investment fund. In short, it is the manager who commands, but he must obey some pre-established rules.

The funds are interesting mainly for those who have little money, since the transaction costs are diluted among the quotaholders. To learn more about investment funds click here to read this other article.

    Advantages: They are interesting for those who have little money (less than 10 thousand reais), since brokerage and custody costs are diluted among the participants.
    Disadvantages: You can not choose the assets themselves, which are chosen by the manager. This, depending on the point of view, can be considered an advantage. Some funds charge very expensive fees. Many funds fail to outperform the Bovespa index.

To know more about investment funds click here .

2) Investment clubs

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Investment clubs are small "condominiums" owned by individuals who seek to invest in the capital market. It's as if you were gathering your friends and family to invest, having the advantage of being able to dilute your costs with them. Similar to the funds they have quotas.

Remembering that the club must have between 3 and 50 participants, it must be composed of at least 67% in shares, subscription bonus, debentures convertible into shares issued by publicly-traded companies, subscription receipts, quotas of stock index funds organized market and certificates of deposit of shares.

Source: investor portal

    Advantages: They are interesting for those who have little money (less than 10 thousand reais), since brokerage and custody costs are diluted among the participants. Clubs have a more flexible management fee. Generally, a minimum amount that can be negotiated with the brokerage house is charged.
    Disadvantages: You can not choose the assets themselves, which are chosen by the manager (can be performed by one or more shareholders elected at the general meeting). It may be that club management is not 100% consistent with its principles.

3) ETFs

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Exchange Traded Funds (ETFs) are indexed funds and their shares are traded on the Exchange in the same manner as shares.

Simply put, when you buy an ETF you are buying a basket of stocks at once, which makes diversification much easier, since you only buy one asset rather than buying more than 60.

When you buy the ETF BOVA11 for example, you are buying a package of more than 60 stocks (the stocks that make up the BOVESPA index) with only one purchase order. This way you can save money mainly in brokerage and you can also diversify your investments in a simple and easy .

It is worth remembering that most of the funds can not have better returns than the BOVESPA index, which makes this investment very attractive, easy to buy and sell and the economy in fees charged to invest.

    Advantages: Low operating costs and high diversification. It is more profitable than most of the funds that aim to follow the BOVESPA index.
    Disadvantages: Not interesting for low amounts (below 10,000). You will have monthly custody cost that varies around 15 reais per month. If the value is too low, this can affect your profitability. You also can not choose the assets that make up the ETF. They follow composing rules according to the index they use for reference.

4) Assemble a Stock Portfolio

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Contrary to many people think, it is not easy to put together a profitable portfolio . There are several studies that show that people are not able to consistently have above-market returns.

So you should be careful if you select for yourself the assets that are part of your stock portfolio. This care should be doubled if you have little money, since the costs heavily influence the performance of your investments.

Remember that when you assemble your wallet, you will have brokerage costs on each purchase in addition to the monthly custody cost. If you have values ​​below 10 thousand reais, these costs can significantly affect your earnings.

    Advantages: You can choose the companies you are going to buy (this will not always be an advantage, since most people do not have the ability to have above-market returns).
    Disadvantages: High costs if you have little money. It may be that you have many costs to reinvest the dividends that are "dripping" into your account.

How to Buy Stocks in 3 Simple Steps

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I have separated this guide into 3 simple steps for you to buy an action. By following these 3 steps you will have no doubts when making your purchases.

1) Choosing a financial institution

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You can basically invest through banks and brokerages. They are necessary for you to broker your financial operations.

The banks you should already know. They are institutions that have as main focus to lend money . In general, they have higher costs when it comes to investments. Another important issue is that banks only offer products of their own, ie Banco do Brasil, for example, will only offer CDBs, Banco do Brasil LCIs and not other financial institutions.

Unlike banks, brokerages have no focus on lending money to people. They focus primarily on finding customers to invest in their products and third-party products . For this reason, they sell to customers both funds they own and third party products (CDBs, LCIs, etc.).

They do this because they can not issue such securities and also because they earn a commission for selling third-party products. Do not forget there is no free lunch 🙂

I particularly prefer brokerage firms primarily because of the cost / benefit ratio they provide. In addition, through the brokerage firms you can invest in the most diverse products of the most diverse banks.

2) Sending money to the broker

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The process of sending money is much simpler than you think. Just make a DOC or TED from your bank to the brokerage firm. It is important that the money goes out of your bank account, because this is how the brokerage knows who the money came from (it recognizes the referral by CPF).

To save on these costs, I recommend you create a digital account . This is a type of account that does not charge DOC or TED and can be made in several banks. Just search google to check if your bank has a digital account.

A lot of people ask me about the risk of brokers . The truth is, overall, they're pretty safe, especially if you're investing in big brokers. Remember that if the brokerage firm breaks you will only lose the money that is stuck in your account. Investments are guarded outside the brokerage house, which protects you against any breach of it.

3) How to make your purchase by homebroker

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For some years now it is possible to buy and sell assets through homebroker. For those who do not know, homebroker is a tool that your broker makes available that streamlines your process of buying and selling assets such as stocks, for example.

When you enter your broker's page, you are logged in. After that you will see that there is a link to the homebroker. You can rest assured that it's nothing complex or anything.

When entering the homebroker, you can follow quotes, see graphs of assets, etc. The functions that the homebroker possesses vary from broker to broker. However, the basic functions of buying and selling are present in all.

When we buy or sell a stock we need to know a few things:

    Assets : Every stock has a code on the stock exchange.
        Example: Ambev shares are represented by the ABEV3 code.
    Quantity : If we deal in the normal lot, multiples of 100 shares will be accepted.
        Example: 100, 200, 500, 1000, and so on.
    Price : In this field we will determine the price we are willing to pay for the stock (if we want to buy it).
        Example: 100 reais. That means we are willing to pay up to 100 reais per share.
    Validity : In this field we will post until the order is valid. We can select today or any other date. Basically two things can happen: either the order is executed or the order's validity expires. As long as neither of these occurs, the order will still be available in the order book.

3 Things You Need To Know Before Buying An Action

Before buying your stock you need to be very careful about some details that can significantly harm your results . That's why I've created a section in this article with 3 items that you need to be very careful about before you buy a stock.

1) Check the brokerage you are paying for

Long before you buy a stock, you need to choose a broker through which you will conduct your buying and selling operations. The cost of brokerage is a very important factor when you choose a broker.

Avoid using brokerages that charge a very high brokerage . Obviously you should use your common sense, since there is no free lunch. So always see the benefits that the brokerage house will bring to you according to the brokerage it is charging for the service provided.

Many times the cheap can be expensive, so analyze in detail the costs charged by the brokerage firms.

2) Check other operating costs

Focusing on brokerage is another common mistake people make. They forget that there are other costs for you to invest directly in stocks such as custody costs , for example.

Remember that there are other costs like fees, settlement fee and registration fee that varies according to each market traded. In the stock market for individuals, considering that you will not buy the stock and sell on the same day, you will have to pay 0.0325% on the volume traded.

To find out more information about these costs click here .

3) Do not quit investing directly in stocks right away

This is another very common mistake. People go out and invest directly in stocks right away, even though they have little money and do not know their profile .

Investing with little money in the stock market as an individual can be very dangerous since these costs can erode your income. Therefore, always calculate the costs that you will have at the time of investing. Remember also that there are alternatives such as investment funds and clubs that allow you to start your investments in low value stocks.

Also do not forget to review your profile. I say this because many people enter the stock market thinking only of the gains and do not realize that it is also necessary to go through periods of losses. The stock market fluctuates a lot, but several studies show that in the long run it is profitable.

Here in Brazil, we have a different situation from the US, since our extremely high interest rate makes fixed income still very advantageous. For this and other reasons, in analyzing the exchange rate performance against fixed income, we see that the profitability of fixed income in Brazil has been much more interesting in recent years.

This does not necessarily mean that this will continue to be the case, but if the interest rate remains high, the scenario is unlikely to change over the next few years.

We Learned It In This Article

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    When we buy a share we are buying a portion of a particular company, that is, we are becoming a partner in this business .
    There are basically 4 different ways to buy stocks: investment funds, investment clubs, ETFs and set up a stock portfolio.
    To buy stocks you must: choose a brokerage firm, send the money and buy the desired shares.
    Avoid using brokerages that charge a very high brokerage .
    Remember that there are other costs like fees, settlement fee and registration fee that varies according to each market traded.
    Many people enter the purse thinking only of the gains and do not realize that it is necessary to go through periods of loss as well .

Finishing

Let's finish here. Do not forget to leave your comment below by saying what you think of the article. Do not forget to download the free ebook by clicking on the image below.

How to Invest in Stocks - Step by Step Guide

How to Invest in Stocks - Step by Step Guide How to invest in stocks on the stock exchange is a question we have received a lot, so we have decided to make a quick and practical guide for you to start investing now. Investing in stocks may seem complicated at first, and this naturally drives some people out of the market, who think it's a very complex, bureaucratic, time-consuming process. Fortunately this idea of ​​complexity in relation to the market is a myth and opening an account in a stock brokerage to take this first and fundamental step is quite simple and nowadays, inclusive, this process can be totally online in some brokerages. To invest in stocks on the stock exchange is simple: all you need to do is open an account with a brokerage firm, transfer the money set aside for investment and start investing. This brokerage house may be independent or linked to a commercial bank. That is, even the big banks also own their brokerage firms and for those investors who are suspicious of the financial strength of smaller institutions, opening the account at the big banks brokers can be a good gateway. After the investor performs the process of opening the account at the brokerage firm, since this process normally requires only the sending of some documents and the completion and signing of some forms, the investor must deposit money in this account so that he can start his investments. To deposit money into the broker's account, each brokerage house has certain rules, and brokerages usually require bank transfers to be made and that the funds originate exclusively from the account holder. Normally, the investor will not be able to make deposits in the bank's cash account in the broker's account, but should make an online transfer. Once the money is in the brokerage house, after logging in to the broker's website, the investor can use it to carry out various types of investments, among them the purchase of shares. Brokerage houses usually provide a platform known as "Home Broker" and this platform allows for the negotiation of stocks or real estate funds, for example. Homebrokers may be different from one broker to another, but the investor eventually becomes accustomed and if you have a problem or do not understand the system, talking to the brokerage and asking for help may be necessary. Anyway, usually all that the investor needs to do to buy a stock through a homebroker is to enter the code of a paper, within the system of the homebroker, choose the amount of shares, the price and send the order. For example, if the investor wishes to buy 100 shares of the Ambev brewer, which has its shares traded through the ABEV3 code, in the homebroker the investor should enter the code "ABEV3", enter the amount of papers he wants, in this case 100, and the price per share. If the investor wants to buy to the market, that is, paying the price that is being offered, the order will be executed immediately. On the other hand, if the investor chooses a lower price, the order may take some time to execute. After the order is executed the investor becomes officially a shareholder of the company and will have, from then on, the right to participate in its results, through dividends, etc. If the investor needs or wishes to sell his shares at any time, the process is the same, but at the time of sending the order, it must be sent with the sale characteristic. It is worth remembering that at each stock exchange on the stock exchange the chosen brokerage will charge a commission for the negotiations executed by it. This cost is called brokerage and can range from a very low cost to high values, and will depend on the brokerage firm that the broker has chosen. We'll talk more about the costs to follow. In summary, we recommend following these 6 simple steps: Open an account with a broker or bank Book from 6 months of your monthly cost to live in your emergency reservation Separate from 2 thousand reais to invest Transfer money to your account Start investing Make constant contributions and reinvest your stock dividends How to select a broker? There are many brokerages available for those who want to start investing in stocks, each with its own characteristics and characteristics, such as differentiated costs and prices, different platforms, quality of service, products offered, financial strength, etc. For the small investor, who wants to start investing relatively low monthly values, choosing a broker with low costs is totally necessary, and thus, avoiding those very expensive is imperative. There are brokers that charge brokerage fees that exceed $ 20 for a negotiation, which can weigh heavily in the pocket of the small investor, and others that even charge less than $ 2.00 and therefore conduct a search price and cost is important, especially if the investor wants to start applying little. On the other hand, investing through a brokerage company only because it is quite cheap, but without knowing its brand, its history, its solidity and financial health is also not recommended, and research on the institution, evaluate its financial strength, its history in the market , is a correct attitude. Although the brokerage is only an institution that mediates and allows the trading of shares, and the investor's shares and assets are held in custody in the "CBLC" - that is, the investor will not lose its shares - if the brokerage firm will fail, the money that the investor has stopped in the account of the brokerage house can be lost, and this whole situation generates an unnecessary headache, and for that reason, it is better to avoid it. Through the website of the Central Bank it is possible to monitor the financial performance of financial institutions, and among them, brokerage firms. In this link , selecting the macro-segment n2 - non-banking capital market, the investor gets a summary of the main information related to the financial health of the institutions. Here is an example: Macrosegmento N2 Net Profit Table The investor should prioritize profitable institutions and avoid brokerages that only operate at a loss, as these are clearly showing financial fragility. In addition to the financial health issue of the brokerage firm, the investor should evaluate the services and variety of products that the brokerage offers, to make sure that it makes available what the investor seeks. There are brokerages that offer only the homebroker to their clients, the stock trading platform, and offer little in relation to other products such as fixed income funds, CDB's etc. Thus, investors wishing to have a share of the capital invested in fixed income, should seek brokers that offer beyond homebroker options of investment funds, fixed income instruments, direct treasury, and so on. Why invest in stocks on the stock exchange? Stocks are just one of the many possible alternatives for those who want to invest. Between saving, direct treasury, multimarket funds, mutual funds and other investment options, why should anyone opt for stocks? The rationale behind stock investment is that it is the alternative that, historically, considering long-term returns, has the highest rate of return, both in Brazil and around the world. The Triumph of the Optimists study by Elroy Dimson, a professor at the London Business School published in 2003, evaluated stock market returns compared to investments in debt instruments (fixed income) over a period of up to 100 years and the result showed which we expected: investment in stocks was the most profitable option. In the United States, for example, the largest market on the planet, equity investment generated a return of about 6.3% per year in real terms (free of inflation) in the period 1900-2000, while investment in government bonds (bonds) delivered a return of less than 2% a year in real terms. Comparison of stock options in the United States Comparison of stock options in the United States In Brazil, although historically we have observed very high interest rates, which has made fixed income for some periods a more profitable option, if we consider good companies, which are profitable, and have good profitability metrics, the return was much higher. In this case, in Brazil, unlike the US, investing in a passive fund that follows the performance of the main stock market index may not be a good idea, and valuing and investing in good company stocks is fundamental for the investor to obtain differentiated returns to long term. We can cite as an example the actions of Bradesco, a large and consolidated Brazilian bank with more than 70 years of history. Bradesco proved to be a very profitable investment over time and delivered a much larger return than fixed income in its history. To give you an idea, R $ 100.00 invested in Bradesco shares in 1995 would have become about R $ 12,000 today if the investor had reapplied all the dividends of the period. In fixed income, considering 100% of the CDI, the investor would have accumulated around R $ 3,500.00. This excellent stock performance is still reflected in countless other profitable companies, such as Itaú, Ambev, Ultrapar, Lojas Renner, Klabin, Hering, among many others. On the other hand, while being a more profitable investment, stocks tend to be the most volatile of investments. In this way, even good stocks can lose value in the short term. It is possible that stocks trade at a loss even over long periods and the investor should always be aware of it. Bradesco stock growth chart Bradesco stock growth chart For example, to get an idea of ​​the period in which an investor may have to bear losses, the Ibovespa took 9 years to exceed its maximum price reached in 2008. Only in 2017 that value was exceeded. In practice, an investor who invested in an equity investment fund indexed to the Ibovespa, that is, following the performance of the same, has squeezed a loss position for almost 10 years It is important to remember that there are no guarantees of gains in the stock market, but by choosing good companies, it is very likely that the investor will achieve above average gains and will have a greater peace of mind in the market. Investors who select stocks in the wrong way, opting for bad companies, underperforming and unprofitable situations can suffer losses in their investments even in the long run. How do I make money from stocks? Benjamin Graham wrote: "The real money investing will be made - and done in the past in this way - not from trading in the purchase and sale, but from owning and holding shares, receiving interest and dividends, and benefiting from the increase value in the long run. " In this way, an equity investor makes money through the absolute return, which is the sum of dividends and the capital gain of shares. As good corporate stocks tend to appreciate in the long run, as they tend to grow, with revenues, wealth and profits increasing, the investor over time sees their capital evolve. Another important factor in the delivery of earnings to the investor is the dividend. As companies often distribute portions of their profits to shareholders as companies profit more, they also distribute more dividends, and if the investor reinvests these dividends in the purchase of more shares, his equity is growing exponentially. Reinvesting dividends is crucial for the investor who is in the equity building phase, and it is essential for equity to grow with much more consistency, but if the investor wants to make use of the dividends for his retirement, he can too. Generally, the investor obtains gains through a long-term investment approach and it is this strategy that we like and also evaluate as the one that gives the investor greater chances of success. Big investors like Warren Buffett and Luiz Barsi have built their careers and fortunes as investors in this way, focusing on the long run. → Get the letters from Luiz Barsi, one of the biggest investors in Brazil What are dividends? Dividends represent the distribution of part of a company's profits. Its distribution is decided by the board of directors of the company and is divided in proportion to the number of shares held. The board of directors can choose the periodicity of the dividend, its date and also the percentage of profit that will be distributed (which is called the dividend payout). Several investors, particularly those most sensitive to income, analyze a stock through their dividend yield , that is, the percentage that the dividend per share distributed represents the value of the share. Thus, if a company pays R $ 1.00 of dividend and costs R $ 10.00 per share, its dividend yield is 10% (R $ 1.00 divided by R $ 10.00). Generally, companies that distribute dividends are at a more mature stage of their activities. Companies that are in the process of expansion usually retain profits to finance their growth and thus do not distribute dividends or distribute a small portion of their profits. It should be remembered that it is fundamental, for the investor in the stage of accumulation and construction of equity, to reinvest all dividends, precisely to maximize the effect of compound interest. What is capital gain? Capital gain occurs when the value of an investment exceeds the amount that the investor made the purchase. The gain is not realized until the moment of its effective sale. If the investor sells an asset with gains, he must pay income tax, provided that the value of the sales exceeds $ 20,000.00 within a given month. Conversely, a capital loss occurs when an asset has a current price lower than the purchase price by the investor. Risks of investing in shares on the stock exchange Investment in stocks naturally carries risks. The risks that deserve highlights and that every investor should pay attention to are: Stock price oscillation It is important for the investor to keep in mind that stock prices fluctuate, both positively and negatively, and there is no guarantee that the shares will deliver positive returns to the investor, especially in the short term. Therefore, if the investor invests R $ 1,000.00 in the shares of a company, and these shares suffer falls for months, either due to an economic crisis, some nervousness about the markets, or for some problem in the company, the investor will see its shares are worth less, and your $ 1,000.00 may be worth $ 800, $ 700 or even less. However, profitable companies tend to value themselves, and even if the investor faces losses in the short term, in the medium and long term the return must be positive, but again, there is no guarantee of that. The market does not rise straight, stocks do not rise straight, within a 10-year period, where stocks are highly valued, there are many downturns, in which the investor will notice his equity devaluing and this is completely natural in the market. People who do not tolerate devaluations, even if punctual, in equity, and lose sleep because of this, are stressed, should be left out of the stock market or should get accustomed gradually, if exposed to the market gradually. Risks of the Economy If the economy deteriorates intensely this can impact the stock market. This occurs for two reasons. First: companies need to sell to make a profit. If the economy faces a severe crisis, companies sell lower volumes and this impacts their profit. In some cases, companies may operate at a loss if sales decline is strong. Second, the perception of risk increases during a period of crisis. In this way, investors demand lower stock prices to be willing to invest in a risky asset, such as stocks. Risks of Obsolescence This risk occurs when a company can not remain competitive through its products that become without market appeal because they are obsolete or because of archaic production processes. This risk is not irrelevant: few businesses survive more than 5 decades. And even those who survive need to develop, either by modernizing their product or by improving their production chain and distribution. There is the argument that due to globalization and technological advances, this risk is becoming increasingly relevant and corporate mortality is increasing. Regulatory risks In Brazil, regulation is present in all segments and government guidelines change according to the winds of politics. In this way, it is possible that the government, through legislation and inspection, acts in a way that damages the profitability of a particular company or sector. State intervention can take several forms, such as: antitrust regulation, changes in taxation or changes in regulation. Headline Risk This risk occurs when the press conveys news stories that could harm the reputation and business of a company. For example, when the Federal Police initiated the Operation Meat Loose, which investigated irregularities in several slaughterhouses, the actions of all companies in the meat industry suffered significant falls, including the actions of companies not involved in the scandal. News about the political conjuncture, for example, can have an impact on the market as a whole. When the Batista brothers, controllers of JBS, made their award-winning agreement involving a dialogue with President Michel Temer, the Bovespa Index fell more than 10% on the following day, with practically all Brazilian stocks trading in a sharp fall . Inflation and Interest Rate Risk These risks may exist separately or act together. Inflationary risk can impact investment in stocks in a number of ways. First, with rising inflation, it is more difficult for stocks to yield yields above inflation. In addition, inflation can impact the purchasing power of customers and, with this, impact the sales volumes of a certain company, which would lead to a fall in profitability of the invested company. The interest rate risk occurs when the increase in interest impacts the financing conditions of the businesses that need debt to operate. When interest rates rise it is more expensive and difficult to pay interest. In addition, investors apply higher discount rates which negatively impact asset pricing. Generally, the interest rate is high in periods of high inflation. Costs to invest in shares on the stock exchange The individual who decides to invest in stocks should have the knowledge that there are costs attached to this activity. The main costs that will be incurred by those who invest in shares are the brokerage fee, the fees and charges charged by B3 (the stock exchange where the shares are traded), the taxes that affect the value of the brokerage, the custody fee and the income tax. The brokerage fee varies from broker to broker. The rise of home brokers has made brokerage rates much lower than they have been in the past. Each brokerage firm has its trading practices, but it is rare to find brokerages that cover more than R $ 20 brokerage per executed order. In this way, the larger the volume traded, the greater the dilution of this cost. B3 charges a series of fees for each order executed: fees, registration fee and settlement fee. These rates are not representative and represent a percentage of each transaction. The investor will also incur taxes such as ISS, PIS and COFINS that affect the brokerage value, respectively represent 5%, 0.65% and 4% of brokerage cost. Some brokerages charge custody fees that may be a fixed amount or a percentage of the amount invested. It is increasingly common for brokerages to exempt their customers from this rate. In addition, the investor must pay income tax if he sells his shares for profit. The tax equals 15% of the gains. It is worth remembering that the investor can sell up to R $ 20 thousand per month in shares exempt from income tax.

Learn how to invest in step by step actions

Knowing how to invest in stocks may seem complicated at first. In this guide you will understand, in a practical and objective way, how to make money on the Stock Exchange and achieve the success of your investments.
To invest in the Stock Exchange you need:

    Choosing a good brokerage firm
    Open an investment account
    Transfer money
    Define your goals
    Map your investment plan
    Choose actions
    Access the Home Broker
    Send your purchase order
    Track valuation
    Make profits

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To invest in shares on the Stock Exchange you need to open an account at a brokerage firm and transfer the money. So, just buy the shares chosen through Home Broker. When stocks are valued, you sell and receive profits.

The risk in this type of investment is that what you expect will not happen and the stock will devalue. But rest assured, there are several strategies to minimize this risk. You can also count on the help of experienced analysts in the market , guiding you how to choose the best opportunities and how to buy stocks and sell them at the right time.

    The main cost in equity investing is the brokerage fee, which you pay directly to the brokerage firm. This amount is paid each time you buy or sell a stock.


Although it is a very simple step-by-step to invest in stocks, you need to make some decisions and know the right time to take action. But did you know that you do not have to do it yourself?

The Toro Radar team of analysts follows the market full-time, attentive to any opportunity. Therefore, they have complete mastery over the exact moment of buying and selling each stock. And, to make your life easier and put you by the most likely, they send you these recommendations in real time.

    That's right! The moment a good opportunity comes up in the market, an analyst sends you a recommendation to buy. When it's time to close the deal, it sends you a recommendation to sell.


See how easy it is? And you can access our recommendations right now, for free.

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Chapter 1
What are actions

A company is formed by a set of actions. So every action is a piece of it. When you buy one or more shares you become a member of that company, having the right to receive part of your profits and sometimes to vote at your meetings.

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Chapter 2
What is the Stock Exchange?

The Stock Exchange is the environment where this exchange of shares takes place. Its function is to ensure that negotiations are conducted in a safe, efficient and fair manner, and that you receive the shares when you buy and the money when you sell. It also has the function of keeping your actions safe.

The Brazilian Stock Exchange is the BM & F Bovespa and you can think of it as that famous screaming scene, but it does not exist anymore. Nowadays, the negotiations are done in a 100% electronic and automatic way.

The beginning of this negotiation is the IPO, which is the Initial Public Offering. The IPO is when a company offers its shares for the first time on the stock exchange, in exchange for capital to continue growing. From there we have two situations:

    Primary Market: It is when the investor buys shares directly from the companies, therefore the shares go to the investor and the one who receives the money is the company itself.
    Secondary Market: It is when stocks start to be traded between investors and you buy shares of another investor. In this case, the money no longer goes to the company.


    It is in the secondary market that most of the negotiations take place. Therefore, you need to understand the market to know how to invest in the Stock Market in a safe and profitable way.


Knowing how to buy stocks with good return potential may seem tricky, but do not worry, there are several strategies for doing so and you do not have to make all the decisions yourself.
How to invest in the Stock Exchange
with Toro Radar

Toro Radar is the complete solution that will help you understand how to make money on the Exchange in a safe way. Through it you can learn everything about the Stock Exchange and have an experienced team of analysts, who follow the market daily, ready to give you the best guidance on your investments.

Aside from taking any questions you have, they will put you ahead in the race for good results, identifying the best opportunities on the Exchange and recommending the right time to buy and sell each share.

That way you do not have to worry about monitoring the market all the time, because we do it for you!

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Chapter 3
Advantages of learning how to invest in the Stock Exchange

It is not difficult to realize how investing in stocks on the Stock Exchange offers the greatest potential for market returns. And while investing in the stock market is not yet part of the Brazilian culture, the profile of investors is changing.

    The number of investors at BM & F Bovespa in 2002 was 85,249. By 2016, there were almost 560,000 investors in the Brazilian Stock Exchange.


And the reason for this is clear: The Stock Exchange was the best investment of 2016 . In view of inflation and compared to other investments, the Ibovespa had a profitability of more than 25% higher than the best fixed income securities. And the most important: profitability of more than 32% above inflation .

ibovespa-tesouro-poupanca-comparacao

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But how can investing in the stock market really affect your life?

The Stock Exchange is a place where you can dream big. Where you have the chance to realize dreams that, at first, may seem very difficult, like traveling the world, buying a house on the beach or even living on your investments.

And you do not have to be a millionaire to invest in stocks and multiply your capital in a fantastic way. With strategy and discipline, you can achieve goals that once seemed impossible. And the great advantages are that:

    You do not need a lot of money to start investing.
    There is no shortage, you can withdraw your money when you want or need it.
    It has good potential for long-term return.
    You can also achieve great profitability in the short term and have a faster return.
    You can receive dividends as a share in corporate profits.
    It is possible to rent your shares and receive an extra value.
    Income tax is usually less than fixed income, and you are exempt if you sell less than $ 20,000 in shares per month.
    You can win on the Stock Exchange even with a stock drop.


The great secret to take advantage of this profitability is the knowledge! Learning how to invest in the Stock Market today is easier than it looks and the goal of Toro Radar is precisely this: to help experienced investors and beginners better understand the dynamics of the market and invest with more security, pleasure and profitability.

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Chapter 4
How to make money from stocks on the Stock Exchange

como-ganhar-dinheiro-com-acoes-bolsa-de-valores

There are several ways to invest money in the Stock Exchange . Buying stocks, waiting for their appreciation, is just one of them. You can invest basically in 4 ways:

    Investment Clubs - This is when you join a group of people to invest together, adding the resources of all members. Thus, you have the possibility of investing a larger capital, and divide the gains and losses proportionally to the amount that each one invested.

    Investment Funds - This is a stock fund created and managed by a bank or brokerage firm. To invest in an investment fund, you buy quotas. So your profitability is proportional to the number of shares you own, according to the performance of the fund.

    Index Funds - These are called ETFs, funds that make up a portfolio that is mirrored in some index, such as the Bovespa Index, Small Caps Index and others. They invest in the actions that compose it in order to have the same return as the index has achieved.

    Direct stock purchase - This is a direct way of investing in the Stock Market through the internet, and also the main and most profitable because you have complete control of your investments. You open your brokerage account, buy shares through Home Broker and manage your investment portfolio individually.

Of course, buying your shares directly, without the intermediary of a fund or investment club, is the best way to invest in the stock market. But how can you really make money on the Stock Exchange? This is where the different investment strategies come in and the importance of learning about the market to become a great investor.
How to make money on the Stock Exchange

8 Great Investor Success Strategies

    Stock valuation: This is the main way to make money with stocks, and the one we already know naturally. You buy a stock at a certain value, believing it to have appreciation prospects. When the price goes up, you sell the shares and realize the profits.

    Day Trade: This is the fastest and most profitable mode of investing, where you buy and sell stocks in a few minutes or hours and make a profit or loss on the same day. This is a fantastic way because you can use leverage , which allows you to invest more in value than you have in account.

    Short Term: This modality has a slightly longer term than Day Trade. In it, you seek to gain from the valuation of the shares within a period of 1 day to 2 weeks.

    Long Term: It is the ideal modality for those who are in no hurry to see the results and have the patience and security to maintain an investment, even if it shows falls in the short term. In this mode, you buy the shares for the purpose of winning over a period of months or even years, but remember to be attentive to the market to protect yourself from unexpected events.

    Dividends: You can choose to buy shares of companies that pay dividends. Thus, in addition to gaining from the appreciation of your actions, you receive part of the company's profits from time to time.

    Sales Operations: Did you know that you can win with a stock drop? That's right! This is an advanced strategy that can bring fantastic returns. It works unlike the traditional operation, because you sell first and buy later, even if you do not have the action. If the transaction lasts more than 1 day, you will need to rent the shares to sell them and then return it to the owner.

    Stock Rent: Some investors may want to gain from falling stocks in fast-moving market movements, for this they will need to rent the stock of another investor. Then he sells that stock, buys it for a lower price and returns it to the owner he rented. Therefore, you can make money by renting your shares to these investors.

    Futures Contracts: This is another advanced strategy best known to investors already experienced in the market. Investing in the V alores Exchange is not only about buying stocks, there is also the Future Market , where you invest in commodity contracts (such as beef cattle, coffee, corn), indexes (such as the Ibovespa) and even the Dollar. It's a fantastic way to diversify your investments and invest in globally consumed products on a large scale. These investments are mainly Short-Term and Day Trade .

Did you see how the market offers more possibilities than you realize? And learning about them is not that hard either. With Toro Radar, you learn how to invest and earn money in all these ways and strategies, in a practical, objective and extremely didactic way.

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Chapter 5
How to buy shares by Home Broker

As we said earlier, that screaming on the phone no longer exists. And this change in how to invest in the Stock Exchange is largely thanks to Home Broker .

Home Broker is the platform where you will sell and buy stocks. It will be the link between you, the brokerage firm and the Stock Exchange, and through it you will be able to invest in stocks through the internet, the comfort of your home or wherever you are. Simply turn on your computer, access your broker's Home Broker and send an order.

    Now, how to invest in the Stock Exchange in an even faster and more efficient way? Using the Best Home Broker on the Market !


home-broker-toro-radar
See how the Toro Radar Home Broker works!

The big difference for a successful investor, besides knowledge, is agility. If you already know how to invest in the stock market, you should know that every minute makes all the difference. Be it for those who invest in the fastest mode of the stock market, Day Trade , or for those who need to protect themselves, coming out of a long-term investment as their stock begins to fall.

That's why, despite not being a broker, we decided to create, in Toro Radar, our own Home Broker. Thus, we can give customers more agility and efficiency to operate the recommendations at the right time.

So when you get a recommendation from Toro Radar, you can buy and sell your stock in just a few clicks and on the same screen where you access analysis, graphs or ask questions with analysts.

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Chapter 6
What is the minimum amount to invest in stocks?

This is a common question for those looking for the first steps of how to invest in the Stock Exchange. It's an important point, because a lot of people stop investing because they believe it's necessary to be a millionaire or have lots of money.

    The truth is that there is no minimum value to invest in stocks . But there is an ideal minimum value for you to achieve good results and offset operational costs.


You can find stocks that cost $ 14.20, like Petrobras shares (PETR4) on April 17, 17, for example. But by buying them, you will have to pay some fees and this can erode your profit. So it is important to calculate whether the estimated profit will be above these costs. And it's important to remember, too, that stocks are usually traded in lots of 100.

The minimum amount that we consider ideal to start investing in a safe force and with the possibility of achieving interesting results is the capital of R $ 5,000. That way, you are better able to afford the normal operating costs and swings in the market.

Starting at less than R $ 5,000, regardless of the strategy used, you will have to earn a lot to make your profit above rates, which also means taking more risks. That is, you can take more risks of losing all your money than making a profit.

    We recommend that you start investing with a minimum value of at least $ 5,000 . But to use the best strategies and build a diversified and winning portfolio, a capital from $ 20,000 would be ideal.


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Chapter 7
Costs and taxes

When investing in stocks, the main costs you may have are basically:

    Brokerage Fee - This is the fee charged by the brokerage firm each time you issue an order. When you buy the stock, you pay the brokerage fee and when you sell the stock, you pay again.

    Custody fee - This is a monthly fee charged by BM & F Bovespa for the custody of its shares. Some brokerages choose not to pass this cost on to the investor and offer free custody.

    Emoluments Fee - Charged by BM & F Bovespa, it is a rate proportional to the amount involved in the purchase and sale of shares.

    Management fee - For investment funds. It is a rate calculated proportionally to the period and value of the application in the fund.

    Performance fee - For investment funds. It is charged if the fund achieves a profitability higher than expected.

    Income Taxes - Investments in shares are taxed at 15% for normal operations and 20% for Day Trade operations, but only on earnings. If the investor sells less than $ 20,000 in the month, there will be no taxation.

These rates may vary by brokerage, except for the fee and income tax, so it is very important to thoroughly evaluate your broker's choice. Observe the quality of service, the services and tools offered, safety and cost-effectiveness .

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