How much can you earn on stocks?

Everyone who decides to become a trader chooses the instrument through which they will generate profit.

Some prefer currencies, others prefer futures , and still others prefer stocks. In this article, we will discuss the latter option.

Most beginners are interested in the question of how much can they earn on stocks and what are the characteristics of this type of trading compared to other exchange-traded assets.

There are two options for trading stocks: with and without a change in the owner's name in the shareholder register.

1. Physical purchase of shares - carried out through specialized brokers, after which you become the full owner of the securities. The purchase takes place offline with the signing of an agreement.

As a result of this transaction, you receive dividends, if the company pays them; their size usually ranges from 2 to 15 percent, depending on the share.

Profit can also be obtained from the growth in the value of the purchased shares, but in this case, in order to make a profit, you will have to sell your securities. It is quite difficult to predict how much your investment will grow; in a crisis, negative growth can also be observed.

The disadvantage of this type of trading is the speed with which transactions can be concluded, and the high commission of intermediaries arranging the purchase and sale.

2. Trading through a trader's terminal - selling and buying shares using special software is extremely simple, although there are no dividends to speak of here. You do not actually become the owner of a block of shares, but enter into speculative transactions.

However, in return, you receive many advantages:

• You can sell and buy shares almost instantly.
• You are provided with leverage of up to 1:100
• The trader's terminal allows for high-quality technical analysis of the market state.
• Minimal commission when making transactions.

As for earnings, they are much higher than with the actual purchase of securities, but the risks are correspondingly higher. On average, stock traders make up to 50% per annum; there are also record-breakers and outsiders, the latter of which lose all their money due to high leverage.

In general, stock trading is no less profitable than other types of trading, although it is impossible to earn extra profits using scalping , since the leverage provided by brokers for stocks is usually no more than 1:50 - 1:100.