lundi 29 février 2016

Brokers and how to trade on the stock exchange

First, brokerages:
If you have decided to invest in the securities of yourself and you have the ability and the desire to take your decisions and follow up on your interactions on your own, then you will do business on the stock exchange through the brokerage firm you implement investment orders. You will then pick one of the brokerage firms licensed by the General Authority for Financial Supervision. We advise you Dear Investor to move away from dealing with brokerage firms that:
  • It does not have workers who are qualified scientifically and technically.
  • Do not rely on technical and financial studies before you give advice beacon to you and offers you the views are based on rumors and directions are incorrect.
  • Do not follow the care of a man who is keen to warn you when the appetite for making any investment decision
  • Do not fit your investment objectives.
  • Ask you to behave contrary to the legislation governing the capital market, including, for example, the signing of the orders to buy or sell securities in blank, or to offer you a credit for the implementation of your operations while it is not licensed to practice margin trading activity.
  • Resorting to pressure you to carry out operations do not bring any benefit only get commissions and expenses from you.
All this avoids exposure to improper practices by some employees of brokerage firms may lead to the loss of your time and your money and your investments.
Second, corporate portfolio management:
If you have a large amount of money they want to invest the stock market and you do not have the knowledge or expertise to make investment decisions that achieve you goals, or do not have enough time to pursue your investment, you have to choose one of the companies working in the field of management of securities portfolios licensed to engage in this activity of the General Authority for financial supervision.
These companies are characterized by that it has employees who are their scientific competence and practical experience and good knowledge of securities market, enabling them to manage your investments on your behalf.
And remember well:
  • Choose the management company of securities portfolios decision is your decision.
  • Follow your investments and your duty, regardless of the method of investment (brokerage-management company Mhafez- or bank "investment fund").
  • The exchange transactions accept the profit or loss regardless of the financial broker qualified professional to invest your money.
Third: Investment Funds
If you are a small investor, and you do not have knowledgeable about investing in the stock market and its nature, the most suitable investment vehicle suits are resorting to buy the investment funds. Most of these investment funds established by banks, after obtaining the approval of the General Authority for Financial Supervision and pledged to manage it to one specializing in the field of winning investment fund management companies a license from the General Authority for Financial Supervision.
The most important features and advantages of investing in mutual funds that you invest in a large number of stocks and bonds to earn you diversify your investments and minimize risk.

Start to get a uniform code for dealing in the stock market:
Each investor in the Egyptian stock market when investing his money begins to shares or bonds through a brokerage firm or management company governor of securities is required to have a uniform code on the stock exchange and other than the account number so the company itself has. And are all dealings through this code, even if dealing with more than one brokerage firm.
It can be summarized steps you have a unified code Stock Exchange as follows:
  • The coding through a brokerage company that decided to deal in the stock market from which
  • There are a number of documents required to complete the coding process:
  • Personal (national passport) for adults over 18 years
  • Birth certificate for less than 18 years
  • Order coding frees through a brokerage firm and sent to the Department of coding the stock exchange and accompanied by the documents referred to.
  • Submit the application on your own or through your agent under a special power of attorney to deal in securities or general power of attorney covers all actions in addition to dealing in securities
  • If you've reached (21) years, please Apply on your own or through your agent, but if you are under 21 years of any minor, the application shall be submitted through your father (guardian you) In the absence of the father offers by the grandfather of the father (and not the mother) or guardian whatever it relates to you.
  • If the person is unconscious of eligibility, the application shall be submitted by based on his work under the rule of the competent court.
  • But if the person is serving a criminal sentence in prison, the request is submitted by based on his work under the court's ruling.
  • The coding Executions give the code number of the brokerage firm and the client must have registered so he can deal in securities with any other brokerage firm wants
     
    Open an account with a brokerage company
    There are a number of steps required to open an account with a brokerage company that has decided to deal in the stock market which:
  • If you invest in the stock market for the first time, you'll need a unified code by following the steps listed above. But if you've ever been to get this code and deal through another brokerage firm, the you pull this code from this company to a new brokerage firm.
  • Then open the fulfillment of contract deal in the securities brokerage account agreement. And make sure that the company used boilerplate contract to open an account contained in one supplements the executive regulations of the Capital Market Law No. 95 of 1992. You should read the terms of the contract and understand it well so you know very well what are your rights and obligations, and then his signature and get a copy of it to keep.
  • You also hold open an account with a custodian who met are dealing with a brokerage company or you choose. Often you can meet this form through a brokerage company that sends the company after the signing to the custodian.
  • Deposit the amount you want to issue orders to buy its value then issued an order to buy afterwards.
Now you can export your orders for the company to purchase or sell securities, which want to invest in them.
Always remember that the account balances and transactions, a decline in securities purchased and sold through the brokerage firm once a month at least through the balance of the request revealed custodian to verify that the brokerage company implements your operations requested by the Committee.
Learn exchange-traded financial instruments: -
The Egyptian stock market in a number of trading financial instruments, including stocks and government bonds and corporate bonds. This is unlike documents of investment funds as you can from one of the banks that set up an investment fund.
And you have to understand very well the characteristics of each of these financial instruments and the risks of investing in nature and before you choose one of them to invest in.
Learn trading procedures
Dear investor, you do not know that trading procedures may make you fall in many investment errors. Do not hesitate to ask your broker for trading procedures
Now , let 's review with you the trading action in the stock market:
  • Edit the Securities buy something you want to buy through a model which offers you through a brokerage firm.
  • You have to determine the quantity you want to buy within the limits of the amount of money given to you at the date of purchase, which you have to file it with the brokerage company under the deposit receipt of cash or cash receipt is received from the brokerage company
  • Remember to get a picture of it and a copy of the delivery of the cash deposit of the company.
  • Ask your company's purchase invoice if the implementation of purchase of shares.
  • As in the case of a sale, issue a sell order quantity you wish to sell securities already purchased or subscribed and you have to determine the sale price to perform the operation or to choose their implementation at the market price.
  • If the execution of the sale, ask the company's bill of sale and disclosed financial account and remember you are you right in the exchange value of the securities sold request after the settlement, which take place after two days of sales (based on T + 2).
  • You retain all sales and purchases with Your account detect and comparing operations mentioned in the disclosure orders of buy and sell orders and that before signing it in favor of the broker so that you confirm transactions executed on your profile should be.