New To Trade

We all hear about investing in the stock exchange, but most of us do not know how to actually invest in it. Some 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, creating a false mental impression of stock market.

In fact, it is a market like any market and the only difference is that this market is a commodity, whether stocks or bonds, etc. No one can lose unless he sells what he owns at a lower price than what he bought in any market.

In order to invest your money in the stock exchange, you must take several important measures, first to register yourself first, through the so-called patch.

This means that you get a code number you deal with in the stock exchange, which is similar to the ID number, which distinguishes one investor from another.

This number is obtained by applying to a brokerage company for a simple financial fee determined by each company not exceeding 50 pounds.

You can not, as an investor, deal directly with the stock exchange, but through a brokerage firm that receives the purchase and purchase orders for the shares. The Brokerage Company collects a commission rate for each transaction you make.

And the date of trading on the Egyptian Stock Exchange from 10 am to 2:30 pm, and closes the stock exchange on Friday and Saturday.

Note that the higher the risk, the higher the profit rate, and the greater the loss.

Steps to invest in the stock exchange

• You must first determine how much money you can use on the stock exchange so that these funds are in excess of your financial obligations and expenses.

• Once you have identified the amount of money you need, be careful not to use it all to invest in the stock exchange. A sudden situation can occur for your expenses. You are forced to sell at a loss to pay for this requirement.

• After we have determined the net amount to be invested, select Long Term or Short Term Investment. Short term investment means that you want to get out of the market in a short period (for example, because you have a particular obligation) and vice versa for long-term investment.

• You should then identify the means of investment whether it is in (bonds – stocks – treasury bills – investment fund documents – government bonds). This can be done with the help of brokerage firm, providing you with the best means of investment to suit your financial possibilities.

• Brokerage company can provide you with necessary information about exporting companies such as: the sector to which you belong – its products – its future plans.

• Then determine the company or companies you want to buy shares and the price you want to buy it, and then ask the brokerage company to carry out the order in the manner agreed upon either by written order or by telephone.

• Then if you want to sell these shares again also ask the brokerage company to sell the previous way after determining the price you want to sell at.

• After the legal period of the sale process according to the security that you bought or sold, “Misr Clearing” settlement of the sale and put the value of the transaction in your account or pay the value of the transaction in the event of purchase.

You must also know whether you are an investor or a speculator.

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

Investor is based on the performance of the company in its decisions, and is considered a long-term investor, because it aims to achieve annual profits and also profits when the share price increase (capital gain), and this is the safest investment in the stock market, which is recommended.