We all hear about investing in the stock market, but most of us do not know how to actually invest in it..and some people have inherited ideas like that so and so he lost all his money in the stock market in minutes, or that a businessman committed suicide after losing it on the stock market, which created a false mental impression of stock market.
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 50 pounds.
As an investor, you cannot deal with the stock market directly. Rather, it must be done through one of the brokerage firms that receive orders for you to buy and sell stocks. The brokerage company collects a commission percentage for each transaction you perform through it, and this commission is determined in advance.
The duration of the trading session on the Egyptian Stock Exchange from ten in the morning until two and a half, and the stock market is closed on Friday and Saturday.
Note that the higher the risk ratio, the higher the profit rate, and the greater the severity of the loss.
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 pay 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.