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Stock Exchange: How to Invest, What It Is and More!

After all, what is the stock market?

Describing the stock market to beginners seems much easier. The Stock Exchange is the body responsible for registering all assets, shares and securities.

In general, the capital market provides an organized environment, with established rules and promotes security in the investment of assets, which determines the execution of transactions and, therefore, guarantees that the investor receives the shares or bonds in which he invested.

What are shares?

A share is the smallest part of the share capital of a company, therefore, at the time of purchase, the investor acquires a part of the company, becoming its partner.

For this purpose, the company must be registered as a corporation with the Brazilian Securities Commission (CVM), a public body responsible for monitoring and regulating the Brazilian capital market. , a process adopted by companies that need more money to expand their business or increase their market value.

There are so-called common (ON) and preferred (PN) shares: common shares guarantee shareholders the right to vote at company meetings, depending on the number of common shares in relation to small investors.

Preferred shares do not entitle investors to vote, but have priority in receiving the product.

Investors also find stocks in the stock market, which are collections of different asset classes such as common stock and preferred stock, so when buying a stock, the investor is buying a combination of stocks of the same product.

There are also what are called small caps, which are shares of small companies that are less known to individual investors and are less liquid.

Also, on the stock exchange, shares are always traded on a ticker or ticker. For example, if you want to buy Petrobras stock, you need to search for the broker’s original code, not the name, ie PETR for preferred stock and PETR3 for common stock.

How does the stock market work?

In essence, the stock exchange aims to maintain order in the financial markets, to ensure that companies are listed on the stock exchange and receive the shares that investors repurchase, as well as to guarantee their participation in its shares.

Baptized as ecommerce, the system is already fully digitalized in Brazil, via Home Broker, offering more security and credibility for those who want to trade in foreign exchange securities.

In addition, the shares acquired in the country are held by CBLC, Companhia Brasileira de Liquidação e Custódio, ensuring the efficiency of the system in terms of reputation and security.

There are two modules for exchange trading: Swing Trade and Day Trade.

swing trade

These are operations for the purchase and sale of assets on the stock exchange, lasting days, weeks, months or even years. In this type of investment, the process is to buy a stock at a certain time and wait for the best period to sell.

This type of investment is best suited for those who have little time to observe the market and for those who choose a long-term profit strategy because they believe in the security’s appreciation.

Day Trading

This type of trading follows the opposite logic to the previous one, since in this case the objective is to buy and sell assets on the same day and take advantage of market fluctuations. It is known as an advantage to be able to streamline applications, to be able to profit from operations.

It is also an asset class considered to be high risk due to its frequent volatility and is particularly suitable for those who have experience in the investment market and know how to manage economic performance.

Step by Step to Start Investing in Stocks

  • Investir em ações é considerado complexo para muitos, mas não há segredo, basta seguir passo a passo:
    • Defina seus objetivos: antes de iniciar o mercado de ações, você precisa de uma definição clara de seus objetivos de investimento e a duração que você planeja investir para traçar a melhor estratégia para alcançá-los.
    • Identifique o seu perfil de investidor: Você pode investir em ações de diferentes objetivos, portanto, ter um perfil de investidor definido e saber quanto você está determinado um arriscar pode ajudá-lo a identificar qual dessas opções é melhor para você.
    • Ter conta em corretora: depois de definidos seus objetivos e seu perfil de investidor, o próximo passo é abrir uma conta em uma corretora, transferir dinheiro e começar a investir em ações. Desejado, colocando sua própria compra e venda pedidos.
    • Monitore seus investimentos: uma vez implementada como operações, dentro de seu objetivo e sua estratégia, acompanhe periodicamente a evolução de seus investimentos para verificar se existem necessidades com suas estratégias, ou não, para que haja modificações, se necessário.