Do you want to know how profit can be made on the stock market? In this article we describe how we made a profit of 100 euros in 100 minutes on the price of the Italian bank Intesa Sanpaolo. How did we do this? With free investment software.
How to make a profit on the stock market? Three steps
At 5 past nine we opened a position Intesa. Barely three quarters later had we closed it again? In the meantime the position had become worth 20 euros more. In the figure below you can see the facts neatly sorted in a screenshot. We made use of recent stock market news, a smart investment method and a free trade program for this investment. Nothing anymore. The following paragraphs explain how we proceeded.
- Roadmap
We follow a step-by-step plan for all our investments. This is an important tip for you: be structured. Because rumbling is usually not the way to make a profit. Our structure is as follows:
We look for a reason on the internet;
- Determine neatly an expectation and set a goal;
- And finally act according to plan.
We will briefly highlight these steps, so that you can get a good picture and start using the free software yourself. Of course we start with the first step.
- The reason
Friday morning, March 28, presursion (the exhibitions still had to be opened). We wanted to invest on a course. That is why we searched for relevant stock market news on the internet
Explanation reason:
The large Italian bank Intesa thus had booked a loss of billions. At first sight no good news. However, when we read the message well, another picture emerged. According to the report bank is busy with substantial reforms, which are only advantageous in the long term. In addition, experts say that the bank can benefit in the coming years from "a strong market share, a solid capital position and cost savings".
- The forecast - increase Intesa Sanpaolo
In short, positive messages. Our expectation was therefore that the price of Intesa would rise due to a growing demand for the share. After all, investors invest in the future. The future of Intesa is rosy according to the message. The result: growing demand for Intesa, so a rising price.
So our plan was to invest in Intesa. We wanted to use 100 euros for this. We set a profit of 20 euros as an objective.
- How to make a profit on the stock market? - The trade
The Theory:
About to trade. For this we use free software - which you can also download. With this software you can invest anywhere. The program uses a smart investment method, namely speculation. This is a form of investing where you bet on a larger share package.
This large package is called a position. To enter into such a position you only need to finance a small part of this position, 5%. The difference that then arises on the position is for your account. An increase therefore yields a profit. That way you can make a profit quickly, because a big position will soon become more valuable.
Practice:
We opened a position in Intesa Sanpaolo at 9:06 with a value of 2,171 euros. We had to dedicate 5% of this to take up this position. In other words, 106 euros. We also set our goal. If the position would be worth 20 euros more, the program had to automatically close the position. This way we did not always have to follow the investment. While setting a limit is only a matter of checking a box (see figure 3).
- Then our investment started.
We closed the program. After all, we were pretty sure of a (further) increase. The program would therefore automatically close the position that was the expectation.
This was indeed the case; 38 minutes later our position was worth 20 euros more and the program automatically closed the position. In short, the price had risen by just under 1% (see figure 4). The big position, however, made that this was sufficient. Incidentally, we noticed this later, everything had gone naturally.
Conclusions of this experience / tips
The internet turned out to be a good source of information. Because we made a profit based on the news item.
Acting with a preset goal is very easy (you can also set a lower limit (see figure 3)).
In the case of speculation, a small increase (1% in our case) can be enough for a substantial return (19%).
Without proper knowledge nothing is possible so finally Stock Market Education is the best option for you.