How to invest in stocks-how to invest Money-How to invest in stock Market-How to invest in stocks for beginner-How to invest in stocks online.

Where and how to buy stocks Basic knowledge needed to get started?

In order to buy stocks, it is necessary to open an account with a securities company, deposit funds into the account, and prepare a trading environment. Then, from the trading system of the securities company, an order is placed via the Internet, and when the order is executed (the ordered transaction is completed), the act of "buying stocks" is completed. By the way, stocks can not only be purchased via the Internet, but can also be purchased over the counter of a securities company or by ordering over the phone.

How to open a brokerage account

First, select a brokerage firm and apply to open an account. Recently, it has become common to complete only on the Internet. To apply for opening an account, you will need your My Number and an identification card. After applying, if you pass the prescribed examination, you will receive a notification of account opening completion and login information to the trading system within a few days. Then, after logging in to the trading system and completing the deposit, you will be able to buy stocks.

How to deposit money into a brokerage account

Internet banking is a convenient way to deposit money into a brokerage account. Deposit instructions may be reflected immediately depending on the services of partner financial institutions. Other than that, there will be a time-lag flow in which the transfer to the designated account will be reflected in the account after the securities company confirms the transfer.

Flow of ordering stocks

After opening an account with a brokerage account and completing the deposit, first select the stocks you want to buy. Then, the trading system will operate and decide how many shares (number of shares), how (market order or limit order, etc.), and how much to buy. If the order is filled, the transaction is complete. By the way, market is to place an order without specifying the price at the real-time stock price at that time, and limit price is an order method to specify the order price you want to trade.

3 types of profits from stock investment

There are three types of profits that can be obtained by buying stocks: capital gains, income gains, and shareholder benefits. In addition, trading styles are roughly divided into short-term investments such as day trading and medium- to long-term investments. Below, we discuss the three profit types and trading styles.

3 profit types

• Capital gains

Trading margins obtained by selling stocks held. For example, if you buy a stock for 500,000 yen and sell it at 600,000 yen, the difference of 100,000 yen (excluding fees and taxes) is the capital gain. The opposite loss is called a capital loss.

• Dividends 

·         Dividends obtained by holding income gain stocks. Depending on the stock, the dividend yield and the number of dividends are different, and the dividend may be increased or decreased depending on the performance. Also, you must own the stock (name must be on the stock register) on the vesting date to receive the dividend. By the way, it is not always possible to receive dividends if you own shares, and there are companies that do not pay dividends depending on the company's business performance and the amount of dividends fluctuates depending on the company's policy and business performance.

• shareholder benefit

·         A shareholder benefit
company gives its own service products, discount coupons, etc. to its shareholders. For example, Oriental Land, which operates Disneyland, presents passport tickets as a shareholder benefit. As with Income Gain, you must own the shares on the vesting date.

Trading style:

Examples of stock buying styles include:

 

Accumulate trading margins by steadily trading short-term

Hold short-term or long-term stocks that are cheaper than their theoretical value and aim for trading margins

Hold stocks that are likely to grow significantly over the long term and aim for large trading margins

Short-term or long-term holdings to receive shareholder benefits

Hold short or long term for high dividends

The smart way to start investing in stocks is to decide on a style that suits you, based on how much money you have, how much risk you can afford and the return you want, and what your goals are for investing in stocks.

Stocks that can be purchased differ depending on the amount of funds

Some stocks can be bought for 10,000 yen, while others can only be purchased for 1 million yen or more. Even if you buy a lot of stocks, the difference in the cost of doing so is large. So how much do you need for the stock you want to buy? For example, if the stock price is 50,000 yen, you cannot buy that brand for 50,000 yen. The required purchase amount can be obtained by multiplying the stock price by 1 unit. A unit is the minimum trading unit. Since October 2018, one unit has been unified to 100 shares (with exceptions), so the formula for calculating the purchase price is the stock price x 100. In other words, for a stock with a stock price of 50,000 yen, the purchase price is 5 million yen. This is the minimum transaction amount, so if you want to buy more, it will be 10 million yen, 15 million yen, 20 million yen, and so on.

By the way, at many securities companies including Okasan Online, it is possible to buy and sell less-than-one-unit stocks in quantities less than the minimum trading unit. This means that you can trade high-value stocks with a small amount of money. Dividends are paid according to the number of shares held, even if the shares are less than one unit.

Investment options other than stocks

In addition to stock investment, there are various investments such as those targeting the Nikkei Stock Average and foreign exchange. Here is an overview of our representative investment destinations.

<Investment trust>
A financial product that manages money collected from investors by professionals. There are various investment policies, and their characteristics differ, such as the balanced type that aims for diversified investment and the active type that pursues higher yields. You select the investment trust yourself, but the style is to leave the operation itself to a professional. It is also handled by financial institutions such as banks and insurance companies, as well as securities companies.

<ETF (Exchange Traded Fund)> An ETF is an investment trust listed on an exchange. It is managed so as to be linked to stock indices such as the Nikkei Stock Average. However, unlike investment trusts, they are traded on exchanges like stock investments. It is a financial product that combines the features of stock investment and investment trusts.

<FX (Foreign Exchange Margin Trading)>
A financial product that buys and sells currencies such as Japanese yen, US dollars, and euros by difference settlement. Leverage can be applied and investment efficiency can be improved. You can take various measures such as aiming for capital gains against price movements and aiming for income gains such as swap points (interest rate difference adjustments).

<Futures trading>
A transaction that promises to buy or sell a specific product at a predetermined price on a predetermined date (maturity date). There are also commodity futures trading for commodities such as crude oil and index futures trading for stock indices. It is the same as Forex and Click Kabu 365, which will be described later, that you can make a profit from buying or selling, and you can do leveraged trading.

<Click Kabu 365 (Exchange CFD)>
A financial product listed on the Tokyo Financial Exchange that allows you to trade stock indices such as the Nikkei Stock Average and the NY Dow. Click Kabu 365 is one of the options if you want to invest in the Nikkei Stock Average and the NY Dow, which you often see and hear in the news. Leveraged trading can be done with a small amount of capital, and profits can be made not only by buying in anticipation of a rise in price, but also by selling in anticipation of a fall in price. Also, just like stocks, if you hold a buy position, you will receive a dividend equivalent amount (dividend equivalent amount will be given if there is a dividend on the constituent stocks of the stock index).
Some people may not be familiar with Click Kabu 365, but the content of the investment itself is simple and easy to understand. For details, please refer to the URL below. In addition, Okasan Online offers a wealth of information and a full range of trading tools. We have an environment where even beginners can start with peace of mind.

summary

·         In order to buy stocks, preparations such as opening a securities account and making a deposit are required.

·         There are three types of profits: capital gains, income gains, and shareholder benefits

·         The purchase amount of stocks is calculated by stock price x 1 unit

·         There are many investment options other than stocks.

·         *All intellectual property rights and all other rights to the display of "Nikkei" and the Nikkei Stock Average belong to Nikkei Inc.

·         *The Dow Jones Industrial Average (NY Dow) is licensed by SPDJI.

·         *“Kabu 365” and “Click Kabu 365” are registered trademarks of Tokyo Financial Exchange, Inc., and are used as nicknames for stock price index margin trading on which the exchange is listed.

·         *“Exchange Stock Index Margin Trading Kabu 365” and “Exchange CFD Click Kabu 365” are registered trademarks of Tokyo Financial Exchange, Inc.