broker at Stock Research

Now I am trying to choose the market where I can try to speculate. I ask all my friends and many of them advise me to try to speculate at FOREX. Here I write the summarizing of all advices about the trade at FOREX.
You should be morally ready to probable losses of committed finances. All participants in gamble in market FOREX are divided on two big groups depending on that approach to FOREX which they profess.
 The first group - the people wishing fast to take the maximum profit on committed finances without essential time temporary, intellectual both financial expenses, and evaluating FOREX as something similar to game in a roulette in a casino.
The second group - the people suitable to FOREX as to the serious financial market, deeply studying the theory and ready to spend is a lot of time and efforts to learn correct work in this market, and with the course of time to start to earn essential and, the most important, stable profit. Thus it is necessary to understand that FOREX in this sense it is very flexible and gives a field of action both for those, and for others. The spectrum of probable results is very great. At successful coincidence of circumstances it is possible, not possessing even elements of the market to double an ownership capital for 1 day. On the other hand, for large financial institutions in the West comprehensible yield in this market is the level of 20-60% per annum on the invested capital. These are two poles in possible strategy in this market. The game approach allows earning fast lump sum, but sustains risk of instant loss of all funds and has no long prospect. The market approach allows earning at the certain persistence decent money with limited enough risks. And before entering the market you for it should define, to what of poles you will be closer during the work.
Define in advance, that you wish to receive from the market, for what term, with what expenses and risks. Depending on the selected strategy of game on FOREX you should define for yourselves that time with which you are ready to allocate for studying market FOREX. At desire quickly to earn it is enough to study one book in the size in 200-300 pages, containing substantive provisions and concepts of market FOREX, and to start the beginning of operations. Thus the probability of a prize will change about 50% and to tend to downturn at increase in quantity of operations. More serious approach demands initially studying of a maximum quantity of an available information for full understanding of all bases of the market, available tools and methods of the analysis and forecasting of the market which can raise quality of your trade. Unnecessarily in the trade to use all existing ways and methods of forecasting and the analysis, but their knowledge and skill to apply them will allow to develop as much as possible effective system of the trades without which successful long trade is simply impossible.
Find the greatest possible quantity of time for studying the theory before the beginning of practice. It is necessary to find also in the life any part of time directly for participation during trade. Quantity of spent time for acquaintance with the current information, forecasting of the market, the analysis of own results more often in direct ratio received profit. Rash operations seldom enough lead to notable positive results. And even the earned profit at absence of the analysis and systematization in work is quickly lost in next transactions. Thus, all again depends on time.
The major stage before decision-making on the beginning of real game in market FOREX is definition of the size of money resources which you are ready to risk for reception of profit. Any speculative market, and market FOREX in particular, is interfaced to risk of loss of the committed finances. Therefore never put in game more money, than you are ready to lose. Possible losses (from which are not insured even professionals) should not become for you a financial trouble. Do not play on extra funds or for last means postponed for “rainy day”. Market FOREX far not that place where it is possible quickly and without problems to increase greatly a seed capital. It or risky game for the people possessing free money and ready is painless for them to lose, or long and laborious work on purchase of the skills capable in the future to bring the essential income on the invested capital. Therefore primary you should are morally ready to loss of means and to define that sum of funds which loss will be rather painless for your budget. Probably, it also will not occur, but to realize such opportunity better in advance, than to receive financial both psychological impact and feeling of desperation after already it is impossible to correct anything.
After you all the same have made a decision on test of the forces in market FOREX, the major stage becomes a choice of the partner or, easier speaking, the broker through whom will pass your operations. Even at brilliant possession of the theory and practice of the market the certain moments in activity of the intermediary between you and the market can reduce “on there is no” all your efforts and even to serve as the reason of losses. Therefore, before to begin trade, it is necessary to spend the certain efforts to a choice of the good partner. For this purpose it is necessary to collect more information on brokers working in the market, on their financial conditions and reputations. Various brokers offer commissions differing from each other, spreads, percent and the software for trade. The size of the commission, a spread, speed and convenience of the program, and also quality of the offered information on the market can render huge influence on an end result of your work. However, attractive financial conditions by all means should be combined with good reputation and long for works in the market. Otherwise even the earned funds can be for ever lost because of untidiness of the broker that is not for today such unusual occurrence.
At a choice of the broker, besides acquaintance with financial operating conditions, it is necessary to familiarize and test by all means the software which becomes the tool for execution of your will in the market. Different brokers offer their own programs written in different languages and possessing a different degree of speed, reliability, convenience and a various tooling of the analysis. Practically all intermediaries suggest to take advantage of their programs in a demonstration mode, and some people by means of them and to participate in free-of-charge competitions with monetary prize-winning fund. It is desirable to try for comparison some similar intermediaries on offered conditions. Necessarily spend not less than month for game in a demonstration mode, combining it with studying the theory of the market, testing the received knowledge in practice. It will allow you not only to check up quality and convenience of the software, but also you to check up more and more time necessity of the introduction into game on real money. Quality of work of the program and the personnel of the intermediary in a demonstration mode in many speaks about what quality can receive final service, having opened the real account. Constantly analyze results of own work and quality of service. A unique major condition in a demo-game is that with virtual money you should try to address also carefully as with real. Frequently game in a demonstration mode can force you not only replace the prospective intermediary, but also in general to make a decision on undesirability of your participation in game in the financial markets. Far not each person is capable to work successfully in the financial markets: the clear intellect is necessary for this purpose, endurance, skill to risk still more many other individual qualities.
During demonstration trade try to define precisely those tools and information sources which you will use at decision-making on fulfillment of transactions. Also, even prior to the beginning of real trade, it is necessary to define tactics of fulfillment of transactions. As you will often open positions, how much long you will hold the open positions in what the moments will make transactions, as well as in what size you will limit possible losses under the transaction, what part of the capital will use at fulfillment of each separate transaction - all is questions, answers on which will render very essential influence on end results. Besides allocate from huge weight of sources of the information and indicators of the market for itself what, in your opinion, are reliable and correspond to chosen tactics. In language of professionals it refers to as development of own trading system. In fulfillment of financial operations the order and complexity is necessary. The intuition and feeling of the market, undoubtedly, are an important point in decision-making, but they should not be principal causes for fulfillment of the transaction at all. Having developed the certain system of trade, it is necessary to recede from it only in the extreme cases. It is necessary to analyze constantly results of own system, to bring corrective amendments and constantly to improve it. Chaotic trade is a direct way to loss of the committed finances.
Starting real trade, it is necessary to understand firmly, that game in a demonstration mode or as speak, “on a paper” very essentially differs from real game on “real” money. The difference is comparable to sensations of the same sportsmen on training and in the world championship. At real game each movement of a rate is expressed in quite concrete sum of your means, and it puts huge psychological pressure upon the person. Even quite successful players at the slightest failure can lose a head and ability to sober thinking and the analysis. But also excessive euphoria from the received prize can play with you a malicious jest.
Develop own system of successful trade and strictly follow it. Having chosen trading strategy and tactics, having developed own trading system, do not wait, that 100% of transactions become profitable. Any professional makes both profitable and unprofitable transactions. It is important, that the quantity and total result of profitable transactions exceeded the same parameters unprofitable. The best professionals approximately only in 70% of cases reach positive result under the transaction. The profit earns during the long period of time at the cost of excess of the size of the total income over losses. Therefore the individual unprofitable transaction should not upset and unsettle you. You only should analyze closely the reasons which have led to losses and to improve own system of trade in due course to achieve stable growth of results.

Two generations of the Soviet citizens did not know a word “stock exchange”. But all falls back into place. By 90-th years of XX century centralized national economy has deadlocked: commodity deficiency has swept away all from counters of shops, the hidden inflation and surplus of monetary weight have led to appearance of barter in the economy, to disorder of economic communications, recession of industrial production. It is the incomplete list of those problems that were preconditions for a new economic reform in Russia when in the beginning of 1990th years transition to market economy has begun. Then after sixty years’ of calm in Russia again there were stock exchanges which always were one of the major elements of the market. The stock exchange again became necessary.
These years in Russia the exchange boom begins. In the beginning of 1990 in Moscow there are first commodity exchanges - Russian commodity-raw (RCRE) and the Moscow commodity exchange (MCE) - the centers of marketing of those years on which then it was necessary up to half of all wholesale exchange turn of Russia. President of RCRE Konstantin Borovoj in the book “the Price of freedom” recollects, how then nobody trusted, that in Russia stock exchanges can revive. “One of my friends, - he writes, - which I torture most of all in occasion of an opportunity of opening of a stock exchange, has suggested to pay to me of ten thousand dollars that I have stopped these conversations and vanity…”. Really, all began with naked enthusiasm. Some person have simply gathered, risked to enclose in new business the of 30 thousand rubles.
In the beginning of 1990th years stock exchanges have arisen on all territory of the country. In a course there was a wood, sugar, electronics, a paper, building materials, bread, cars, computers and set of other goods. Soon Russia was beat out in world leaders by quantity of stock exchanges - them was totaled more than 1000. Certainly, the majority of them were not classical exchange structures. Many of stock exchanges as a matter of fact were simply fairs where traded in the real goods. But the role of a stimulator of trade and they have played wholly. People began to forget about so hated deficiency of the food and industrial goods.
These for the present not all clear quasi-exchange organizations – harbingers of something new - found to themselves a haven in any premises which could be rented for a while. To many budgetary organizations which are often not received the salary in time, it was necessary “to sin” with letting of rent of its space. Where only did not lodge new sprouts of market economy! Their neighbors were workers of research institutes, publishing houses, the ministries, factories; they removed premises on All-Union Exhibition of Achievements of National Economy (VDNKh), private apartments.

The first term transactions began to be made. On the Moscow commodity exchange (MCE) for the first time in the country transactions for the term with grain and a clap began to be spent. Hardly later to it the Moscow chamber of commerce (MCC) where the future for US dollar bargained joins.
Gradually this trade starts to get the organized character. Classical exchange platforms on which trade basically in financial actives (currency, securities, credits) crystallize. In due course in exchange movement all starts to sound a theme of the share market more clearly. By the end of 1992, according to the Ministry of Finance of the Russian Federation, the quantity of exchange share platforms has reached 22. On the largest commodity exchanges there are share departments. In 1992 the Moscow interbank currency stock exchange (MICSE) which all over again became the center of the organized trade in currency, and then was established by the main stock exchange of the country. 

With the beginning of process of privatization in 1993 in Moscow has opened Moscow international share (MISE) and Moscow central share stock exchanges (MCSSE). The Leningrad stock exchange is established. Trade in securities was started by the Siberian, Baltic and Nizhniy Novgorod stock exchanges. First time stock exchanges were often open for everything, with the right of paid participation of the visitors, not being members of a stock exchange. Usual auction sometimes practiced.
The classical share market that time yet was not. Stock exchanges should struggle for a survival. The majority of commodity exchanges began to trade in 1993 in nationally known vouchers (certificates on privatization), credits and monetary resources, broker places, securities for bearers, and also substitutes of securities. To such notorious tickets MMM, for example, concerned.
After more than semicentennial investment hibernation people again have become interested in securities. There was a hope to earn additionally: many have rushed to put the savings thawing from inflation in securities. It was necessary to something to prove nobody, all as though waited, when, at last, there will be such opportunity. But the market was young. It ill equipped participants was waited with “reefs” of share games: unscrupulous businessmen with financial “pyramids”, sharp loss of savings, it is frequent the last. As a result has come disappointment, and more likely, mistrust of the population to any securities.

 
The same years develops the exchange market for wholesale trade in currency. The center of interbank trade in a foreign currency became the Moscow Interbank Stock Exchange, founded by Bank of Russia and leading commercial banks. In 1992-1993 regional currency stock exchanges in the key economic centers of the country are created. Their network was stretched from St.-Petersburg up to Vladivostok. A creation of the national market on trade in currency and securities on a united technological basis was possible after their unification around of the Moscow Interbank Stock Exchange.
Having received the license of Bank of Russia for the organization of operations of sale and purchase of a foreign currency, these stock exchanges gradually became universal exchange structures which, leaning on local banks, carried out trading and settlement operations, and also carried out functions of storage and the account of the rights to securities for participants of currency, share and term segments of the financial market.
Trade in the state short-term bonds, the state currency and municipal bonds, has begun. In the market the corporate securities emitted by the first private enterprises have started to address.
Revival of exchange trade in Russia has coincided on time with mass introduction in the financial world of information technologies, distribution of the Internet. Though the largest stock exchanges of the West continued to trade in classical way - “by vote on pit”, on a number of the Russian stock exchanges the integrated electronic systems for the organization of the trades began to take root. For the Russia which have stretched on nine time zones, it also was complex, as well as it is necessary. The first large project in this area became creation in 1993 on the basis of the Moscow Interbank Stock Exchange electronic trading-depositary systems which served the market of the state securities (state credit obligations-federal loan bonds).
In May, 1993 the Moscow Interbank Stock Exchange has opened the exchange market state short-term zero-coupon bonds (state credit obligations). In the end of this year it has started the project of united electronic financial market “ETHER” - the inter-regional exchange trades in system of currency stock exchanges have begun. Since 1994 the Moscow Interbank Stock Exchange has entered new technical and trading-depository complex, and with July 1994 has begun distribution of the removed terminals connected to trading-depository system of the Moscow Interbank Stock Exchange.
Its beginning was such. As a result in Russia there was the exchange platform possessing modern electronic trading system, serious potential of development and supporting an increasing securities market - state credit obligations, federal loan bond, then corporate securities and term tools. Then the trades by currency also are translated in system of the electronic trades (SELT). Introduction of the removed terminals enabled to create a universal computer stock exchange where in a mode of real time worked not only the Moscow investors, but also participants from other regions of the country.
In 1994 the Central republican universal stock exchange (CRSE) in Moscow starts to work. It has been opened for fulfillment of transactions by general public, including private persons. On it traded approximately in 50 kinds of demand securities and substitutes which most part then has completely disappeared from the reference. The share market then experienced illness of growth - the reference of pseudo-actives - substitutes of securities. The most popular were tickets MMM by means of which notorious adventurer-mathematician Sergey Mavrodi has constructed a huge pyramid. During its promotion mass advertising promised incomes up to 1000% annual, to resist what the most proof investors could not even. In annual report CRSE for 1994 it is possible to read through the interesting lines describing tickets МММ: “Behind tickets МММ definition “polytrophic production МММ” has strongly affirmed. However during long time they were the most popular paper. Occurrence of tickets of different face values, constant change by management of МММ of appearance of tickets, frequent refusals to accept for payment own releases of tickets, feverish throws of a rate of their buying up-sale in items МММ - all this has resulted work in the market of tickets in the category of the most brave, but also… the most profitable operations. Tickets МММ were the largest component in turn CRSE and gave those years approximately 40-50% of a turn of all stock exchanges of Russia. But unjustified incomes and poor papers have a short life: in 1994 the pyramid has failed, having left millions investors without means and for a long time having scared away investors from the share market.
In 1995 there has begun the activity the Russian trading system (RTS) on which stocks of the first privatized Russian enterprises bargained. On a plan of its founders, it was anything other, as computer over-the-counter system. Similar RTS can be named American computer market NASDAQ. The basic participants of RTS became brokers - members of National association of participants of the share market (NAPSM). Activity of RTS which has been constructed in view of the international standards, has allowed returning trust to the organized securities market. However its weak places were absence of guarantees of execution of transactions, and also orientation to service of the large broker companies with foreign participation. Nevertheless till 1998 on RTS consist more than half of transactions with the Russian stocks.
One of the last in 1990th years had been created the Moscow stock exchange (MSE). In the beginning of 1997 several tens of banks and the broker-dealer companies, and also four stock exchanges have created MSE. However its activity was limited to trade in stocks of the gas giant - Russian Open Society “Gazprom” and the Moscow municipal loans. Attempts to expand a spectrum of operations due to introduction in a turn of other share values and currency have not gone right.
Thus, rough process of formation of exchange structure of the financial market in Russia, predictably, crystallized in several classical stock exchanges. The interesting certificate of the middle of 1993 the newspaper has left to us “Exchange sheets” in which president of MCSE V. Pankin wrote: “The main thing during the last period consists in that in any measure to adjust the destroyed intereconomic communications. There was a process of transformation of many stock exchanges in associations, trading houses, the investment companies and so forth Commodity and raw stock exchanges send to future contracts on that goods which all over the world are considered exchange. As to stock exchanges now there was ten and a half. In the long term them will be even less - two-rub Moscow besides it is probable, in St.-Petersburg, in Ural, the Siberian, Far East regions “.
Rough exchange decade has yielded the fruits. There was a precise exchange system across all Russia, in central and industrial regions of the state, helping to work to the domestic financial market.

Who speculates at the stock exchange? What does the person who earns money at the stock exchange look like? I have asked this question to my friends. Here is the generalized portrait of the average trader.
Speculation at a stock exchange seems simple business. But this simplicity is deceptive. Having succeeded firstly, the beginner already considers itself as the invincible expert, operates without control - and melted out.
To stock jobbing come different ways, sometimes they are logical, but more often - on the contrary. The stock exchange is a chance at one stroke to receive a great lot of money. And money for many is freedom though very few people know that with it to do further. Having mastered exchange business, you become independent: live, where you want, work, where it is pleasant and without chiefs. The market is a delightful intellectual employment - chess, poker and a crossword puzzle all at once.
Stock jobbing attracts courageous and frightens off those who prefers a titmouse in a hand. The inhabitant lives steadily: breakfast, work, a lunch break; in the evening - the house, a supper with a bottle of beer, the TV - and to sleep. It is possible to earn additionally and he entrusts money to the banker on the savings. And at the stockbroker any hour is working, and it subjects the capitals to risk. The stockbroker descends with well-trodden track of the present and goes in uncertainty of the future. Desire to realize itself completely, your abilities, is congenital and also it is inherent in much. It also pushes people to measure swords at a stock exchange. Besides, speculating, it is possible to receive both sports pleasure, and considerable profit.
Good stockbrokers are usually hardworking and sharp-witted. They respond to all new. It is strangely enough that their purpose is not money. Their purpose is able for speculating. Then also money will be - as by itself understood. Succeeding stockbrokers tirelessly perfect the skill. To reach personal perfection for them it is more important than any money.
Stockbrokers from among those who are out of tune with itself, quite often search in stock jobbing for an outlet for the inconsistent desires. But if you do not know, to what you aspire, it can turn out as in an introduction: shoot oneself in the foot.
The layman overestimating the force, trying to win, by all means, should go on the big risk. Means, at the slightest turns of a stock exchange against it will take off from speculation.
The succeeding stockbroker is the realist. It realizes, that has, and that not. It clearly sees, that occurs, and knows how to act otherwise. It soberly estimates an exchange situation and, constraining emotions, builds practicable plans. Illusions are not for the stockbroker-professional. The layman, having done some unsuccessful operations and having lost is a little money, panics. Its representations about a stock exchange become, the further, the more mutilate. At losers it is a lot of imaginations about the purchase, sale and a choice of transactions. They behave as children who are afraid to pass on a cemetery or to glance at night under a bed, because the eyes of fear see danger everywhere. The stock exchange with its uncertainty excites freak of the imagination. From the losers, suffering a myth about exchange knowledge, it is possible to hear: “I have lost, because did not know secrets of speculation”. Many losers think, as if to succeeding stockbrokers any special secrets are known. These people do not know that to play at a stock exchange not and it is odd. It is much more complex to delete, for example, an appendix, to build the bridge or to assort action of proceeding. Good stockbrokers usually people sharp, but all is far not - intellectuals. Many did not study in colleges, and the some people even have thrown school.
Stock jobbing often involves the succeeded businessmen and people of liberal professions. Here a portrait of the average client of broker firm: it is forty-year married the man with higher education. Many have also the firm.
So why do these people who have succeeded in the business lose at a stock exchange? The matter is that there the keystone to success is covered not in special knowledge, not in any secrets and, certainly, not in formation. For success in work at a stock exchange the clear practical mind, the certain share of boldness, constant self-checking and aspiration to self-improvement are simply necessary.
             I don’t answer to the description absolutely, but I would like to try to speculate at the stock market, and (I hope) I will succeed.

I have written this blog for 1.5 month, but only several days ago I realize that I wrote about different foreign stock exchanges, but I’ve forgotten to write about the unique stock of my own country… About Belarusian Currency and Stock Exchange… And today I’ll try to correct it!
The portrait of open joint-stock company “Belarus currency-stock exchange”
The open joint-stock company “Belarus currency-stock exchange” has been formed in 1998 in accordance with the Decree of the President of Belarus from July, 20th, 1998 №366 “About perfection of system of state regulation of the stock market”. Founders of a stock exchange became National bank of the Republic of Belarus (a control share holding), Fund of the state property of the Ministry of Economics of the Republic of Belarus and a number of large banks of the Republic of Belarus.
The supreme body of management of open joint-stock company “Belarus currency-stock exchange” is General meeting of shareholders. The structure of shareholders of a stock exchange, except for founders includes banks, the broker/dealer subsidiaries of republic, etc. The Management of a stock exchange between the General meetings of shareholders is carried out by the Supervisory council.
As of today of open joint-stock company “Belarus currency-stock exchange” is the unique in republic trading platform on the basis of which the national system of the exchange trades on all basic segments of the financial market is created: currency, share and term. Except for the organization of the trades, the stock exchange carries out functions of the settlement depositary institution in the exchange market of not state securities, function of the operator of settlement-clearing system by all kinds of securities and tools of the term market, and also carries out registration of the transactions concluded on the over-the-counter market with stocks of open joint-stock companies and voucher “Housing”.
The foreign exchange market.
According to the Rules of exchange trade in the foreign currencies approved by the decision of Board of National bank of the Republic of Belarus 28/06/2001 №165 (read with 31/10/2003), open joint-stock company “Belarus currency-stock exchange” it is allocated by the right of the organization of the trades by a foreign currency.
The trades by a foreign currency at a stock exchange are carried out within the limits of Section of the currency market. The exchange trades are spent daily with use of electronic system of the trades. The cores currencies quoted at a stock exchange are: US dollar, Euro, the Russian ruble and the Ukrainian hryvna. The rates generated on results of the exchange trades, today are included into the category of the basic indicators of the currency market. On results of the trades the National bank of the Republic of Belarus establishes official rates of the Belarus ruble in relation to US dollar and ruble of the Russian Federation.
The total volume of the trades by all kinds of currencies for 9 months of 2005 was made 10.6 billion of rubles or 4 912 million US dollars in an equivalent.
Stock market.
According to the legislation of the Republic of Belarus for many securities the stock exchange is a unique admissible jail of transactions. To such papers concern: the state issue securities, bonds of National bank of the Republic of Belarus, the bond of local loans and the securities of the open joint-stock companies last an estimation of quality and reliability (listing) and admitted to the reference at a stock exchange. To participation in the trades by securities members of Section of the share market are supposed only. Transactions with securities are made in universal electronic trading system. The opportunity to participate in the trades with use of the automated workplaces located in trading halls of a stock exchange, or through the removed trading terminals is given to members of Section of the share market. The trades by securities are spent daily in following modes: “Continuous double auction”, “REPO (the fixed pricing)”, “REPO (free pricing)”, “Discrete auction”, “Forward transactions”, “Simple auction”, “Simple auction REPO”. The given modes are effectively used for primary accommodation of securities, the organization of their secondary reference and maintenance of processes of privatization.
Now in sector of the state securities and securities of National bank auctions of the Ministry of Finance on accommodation of the state securities are spent, within the limits of the secondary reference transactions in modes “continuous double auction” and “REPO” are made, the National bank of the Republic of Belarus on a regular basis spends simple auctions REPO. On the given segment of the market the institute a market-makers functions. Since September, 1st, 2005 the index on the market government securities/short-term bonds of the National bank of the Republic of Belarus pays off and published.
In sector of not state securities transactions with stocks and bonds of subjects of managing are made at primary accommodation and the secondary reference, and also privatization transactions. The fund of the state property of the Ministry of Economics of the Republic of Belarus uses exchange technologies for the organization of auctions on sale of actions belonging to the state for a foreign currency and the Belarus rubles, “discrete auction” and other accessible modes of the trades realizes state blocks of shares of stocks in a mode. Since October, 7th of 2005 in sector of not state securities the regular trades by bonds of banks have begun.
Participants of the trades can make transactions with not state securities with following conditions of calculations: T+0 (delivery of money and securities in day of fulfillment of the transaction), T+n (delivery of money and securities in the day certain by participants during the moment of fulfillment of the transaction), and also the transactions made on conditions REPO.
The total volume of the exchange trades by securities of all kinds for 9 months of 2005 has made 7.0 billion of rubles, or 3.2 billion of US dollars.
According to the legislation of the Republic of Belarus the stock exchange carries out obligatory registration of all accomplished on the over-the-counter market of transactions with securities of the open joint-stock companies, and also since January, 25th, 2005 transactions with nominal privatization checks “Housing”. For nine months of 2005 by a stock exchange it has been registered 1066 over-the-counter transactions with stocks of open joint-stock company for a total sum of 15.96 billion rubles (7.4 million of US dollars) and 33653 transactions with  voucher “Housing” at actual cost of 19083,7 million rubles (on a face-value 24.0 million rubles). For service of processes of registration system BEQAS functioning on the basis of the Internet-technologies is used.
The term market.
Since October, 2004 the stock exchange has started trading by financial tools of the term market on a constant basis. The exchange trades by tools of the term market are spent in electronic trading system every working day simultaneously on all tools in a mode “continuous double auction”. As participants of the trades act the members of Section of the term market. Calculations under made transactions are spent in uniform settlement-clearing system, in which function of a clearing bank carries out National bank of the Republic of Belarus, and function of clearing - a stock exchange. The toolkit of the given market is presented by future contracts on rates of foreign currencies and interest rates in the market of the state securities.
Information work.
The major principle of the organization of activity of a stock exchange is development of information technologies and increase of a transparency of the financial market of republic. With a view of realization of the given principle by a stock exchange it is created and successfully functions three basic automated information products: the official Internet-site of a stock exchange, the Belarusian automated quoted system of a stock exchange (BEQAS), Information system “Stock market”. The official Internet-site of open joint-stock company “Belarus currency-stock exchange” is the central element of system of disclosing of the information by results of activity of a stock exchange in the currency, share and term markets.
“The Share market” accumulates data about a condition and the processes occurring on a republican securities market. The basic suppliers of the information are open joint-stock company “Belarus currency-stock exchange”, Committee under securities at Ministerial council, National bank, the Ministry of Economics and the Ministry of Finance. Except for the data, directly concerning the stock market, in system the information on a condition of the currency and monetary market is concentrated; contain actual financial and social and economic news of Belarus, the CIS countries and the world.
BEQAS is the information-quoted system functioning on the basis of the Internet-technologies, intended for search of the counterpart for fulfillment of transactions with various kinds of securities, and also serving processes of obligatory registration in the unorganized market of transactions with stocks of the open joint-stock companies and the nominal privatization checks “Housing” accomplished on the over-the-counter market. For today the system is the only thing in republic a high-grade source of the information on a condition the over-the-counter market of the Belarusian enterprises.
Besides the stock exchange acts as the supplier of the information for republican news agencies, and also the leading mass-media focused on illumination of world economic processes.

Today I’d like to finish the story about Saint-Petersburg Stock exchange…
Kinds of the securities presented at the Saint-Petersburg Stock exchange.
The Share market has been presented in 1830 by:
- the state and city bonded loans which shared on short-term (till 1 year), long-term and termless (the original rent)
- continuously profitable, basically denominations in 100 thousand rubles.
- mortgage sheets and bonds of ground banks and private establishments of the long-term credit;
- bonds and stocks of the private companies (stocks were issued only by the commercial enterprises, and bonds as the state and bodies of city self-management). Bonds were issued basically by denominations from 100 up to 5000 rubles, termless loans - in 100 thousand rubles. Bonds and other securities with the state guarantee could not be a subject of Exchange frauds, unlike stocks of the private companies and other securities. Last third of XIX century the most popular were stocks of private railways. The share market of 1995 differs a little:
- the state securities;
- municipal bonds and loans;
- the securities emitted by commercial bank;
- stocks and bonds of the privatized enterprises;
- securities of the private emitters created outside of process of privatization.
The following - current liabilities. They are issued by the Ministry of Finance of the Russian Federation in the paperless form. The purpose is repayment of debts to the enterprises - suppliers to the state orders and mutual payment between the enterprises. Current liabilities become the securities after the term specified in the global certificate of release. Face value of 1 current liability is 1 million rubles, the fixed profitableness at repayment - 40 %.
During the same period of time have appeared Bonds of the State Savings Loan. They are issued in the cash form, face value from 100 thousand up to 500 thousand rubles. Four times a year the coupon income established depending on profitableness of state credit obligations (the State Short-term Obligations) is paid. Sale is made on auctions which are spent or in the form of voice (calculations between participants), or electronic (calculations directly with depository of the Stock exchanges) the trades. A securities market of 1830
- The state and city bonded loans,
- mortgage sheets and bonds of ground banks and private establishments of the long-term credit,
- bonds and stocks of the private companies.
Stocks of private railways are most popular; a securities market in 1992:
- the state securities,
- municipal bonds and loans,
- the securities emitted by commercial bank,
- stocks and bonds of the privatized enterprises, - securities of the private emitters created outside of process of privatization. The state securities are most popular.
Legal aspects.
Initially according to “the companies and stocks” of 1836: all Operations on the stock exchange have been forbidden by Regulations about, but already there was a law on obligatory use of registered stocks. In 1893 have been entered restrictions on carrying out of operations with securities without the share broker. Books of the share broker submitted to audit of the Ministry of Finance, and its chapter could dismiss brokers for abusing, not asking on that of the consent of Exchange committee. Without the permission of financial department it was forbidden to enter securities into the quotation.
On June, 27th, 1900 at the Petersburg Stock exchange the share department, as “a department which was laid down in special conditions of activity” has been created. The department submitted to the Ministry of Finance on especial office by a credit part which began to interfere with activity of the share market.
In 1907 Rules for transactions on purchase and sale of a foreign currency, funds and stocks at the Petersburg Stock exchange have been founded. The bulletin of a share department of the Stock exchange became the official document; the rates specified in it - obligatory for all Russian empire. Brokers were sworn, represented the mortgage and for execution of the transactions concluded at their participation, answered within the limits of data to them of decrees. For the infringements noticed by officials of the Ministry of Finance, could exclude from full members and regular customers.
Nowadays members of the Stock exchange representatives of broker firms, banks, associations, and the dealers, brought a share can be. Physical persons for membership in he Stock exchange should have the certificate of the state bodies on the right of carrying out of transactions with securities. All members of the Stock exchange should correspond to qualifying requirements. By position 1997 the number of members should be not less than 20. The input on a stock exchange is limited. Members of controls, officials, employees of the Stock exchange have the right of a free admission.
 Thank you for your attention and I hope this information will be useful…:)

System and Controls of the Stock Exchange.
The Principal organ of management of the Stock exchange was the Exchange committee - the elective body of Exchange merchant class. It was formed initially for supervision over safety of a new building of the Stock Exchange. With the course of time move to it all function of management, the solution of disputes, communication of businessmen and the governments.
Regulations of 1831 have approved behind Exchange committee the functions of commercial court, management of exchange affairs. At first the committee became an operating agency of the general Exchange assemblies. And since 1875 it was replaced by assembly of member of the city duma (80-150 elected persons).
The structure of Exchange committee (it was approved by above mentioned regulations) included 3 merchants and 3 brokers, was presided by “Mayor”, which headed the Municipal duma. The modern control system is much more complex. It has a great number of committees and departments where a plenty of people is working. Specialization in the decision of separate questions is useful, but on the other hand to the persons bearing the responsibility for activity of the Stock exchange as a whole, can be hard, follow actions of each part of the complex administrative mechanism. Collective nature of departments allows considering in more detail problems and questions, than if departments consisted of one person since people have an opportunity to unite the knowledge, experience, to offer some various decisions of any questions. However, there can be disagreements, and the majority is not always right, and the chief can be mistaken, choosing the correct decision.
In all control systems, beginning with Exchange committee, the basic controls were kept: GENERAL ASSEMBLY which selects EXCHANGE ADVISORY COUNCIL (ASSEMBLY of TOWN-COUNCILLOR). It in turn chooses representatives of BOARD (EXCHANGE COMMITTEE). The truth the PRESIDENT, unlike CHAIRMAN, is the person chosen by board, but the post from it has not changed.
We shall consider functions of the above-named controls:
General meeting of members of Stock exchange is the supreme body of management of the Stock exchange. The decision of following questions concerns to its exclusive competence:
- the statement and change of the charter, balance and other documents;
- an establishment of the sizes of all necessary monetary gathering, sizes of tariffs, payments for exchange services, the sizes of penalties;
- election of members of controls of Stock exchange;
- consideration of complaints to the decision of advisory council of the Stock exchange and boards of directors;
- the statement of the order of a payment and official salaries of the personnel of the Stock exchange.
The functions of Exchange Advisory Council of the Saint-Petersburg Stock exchange:
- an establishment of dates and time for Exchange assemblies;
- drawing up and the edition of rules about the order of carrying out of operations with securities, instructions for brokers on conducting books;
- definitions of the form of bulletin of the Stock exchange;
- an establishment of the size, the order and terms of deductions from a commission of brokers and regular customers of the Stock exchange, payments from visitors;
- the sanction of an assumption of securities and the quotation on the Stock exchange;
- the resolution of disputes, operations arising at carrying out with securities;
- reception and exception of members of the Stock exchange;
- estimating of incomes and charges of the Stock exchange and reports on their execution;
- granting to bodies of local authorities and the government of data and the analytical conclusions concerning development of the financial market.
Also some functions of a higher body can be assigned to Exchange Advisory Council of the Saint-Petersburg Stock exchange.
Board of directors is the executing agency of the Stock exchange. To its competence concern:
- the organization and a management of activity of the Stock exchange and its subdivisions;
- development, change and entering on the statement of General meeting of members of the Stock exchange and Exchange Advisory Council the documents regulating its activity;
- a suspension for the period of exchange trade, in case of if the prices of current transactions on the stock exchange deviate quotations more than on certain Stock exchange size;
- the order of property of the Stock exchange;
- the statement and change of the size deposited in a settlement payment of the mortgage and the liquidating credit;
- hiring and dismissal of personnel of the Stock exchange;
- imposing of penal sanctions.
Functions of Board of directors are carried out by executive committee. It is necessary to mention and the Revision committee. It carries out the current control for financial and economic activities of the stock exchange. Its functions are:
- check of a condition of money resources and property, and also office-work of the Stock exchange;
- drawing up of the report to General meeting about results of audit.

Stockjobbing.
In stockjobbing everyone played their own role. “Aces” set mood of day, giving orders to brokers. Their intentions defined actions of others.
If “the weak mood” (the offer exceeded demand), the “side scene” operating at own expense prevailed, hastened to sell the securities then to redeem them, still, more cheaply, but, bankers, waited, the further downturn that forced the speculators who have bought securities in hope for increase, urgently to sell out them. Brokers started to buy the necessary securities; they were followed with “side scene”, buying papers to sell them when the prices will rise.
In a return case “bulls” started to operate. They added the price and bought up securities, selling them after under higher price. But in parallel with them bankers operated also, the prices grew, but by the end of day of the price were usually stabilized.
Platform. Here played on a difference of rates. Some times for Exchange day intermediaries left on platform and informed on movement of the prices. Intermediaries used that their data cannot be checked up, well and clients could refuse the given assignments at any moment.
“American” is a stock exchange on which it was possible at any moment “to liquidate all unprofitable obligations and to disappear in unknown direction”. In the beginning similar assemblies passed furtively on the Neva prospectus - in the street or in money-change shops (for example, Nikitin’s office). Later all took place in extensive convenient premises.
Data about game on modern Stock exchange are not present, but I do not think, that the little changes took place. Always there are those who speculates on downturn/increase and always to own advantage.

Systems of trade.
The System of the trade by securities, since time of separation of stock exchange from commodity one, constantly changed.
Initially all transactions consist brokers at personal presence of people. Large Stockbrokers, appearing, gave orders to brokers, divided operations among themselves and started to operate. But a plenty present, noise and confusion, false movements, demonstrations, sometimes led to some misunderstanding. For example, on the different ends of hall transactions on the same security under the different price consist.
After the conclusion of significant transactions public gathered in some dense circles where there was a trade on running securities. The form of carrying out reminded auction - the prices were specified. Finally established they were considered after the first call. The second closed an official stock exchange.
Full members of the Stock exchange submitted a note about arranged deals which each broker has been obliged to bring in the books and bulletins, but this rule was quite often broken. Operations proceeded on platform where within day intermediaries informed data on the prices, mood, etc., quite often deceiving gathered there, in own purposes.
As there was one more kind of an informal Stock exchange - “American”. Behind the frauds occurred there to follow it was impossible, there were no legal guarantees.
After creation of an official share department not only system of the trade has changed, but also public of an institution. Its valid members - plenipotentiaries of commercial banks, bank buildings and offices - possessed exclusive rights: to operate without brokers, by proxy (no more than one) and improvised (no more than two). Advisory council of a share department consisted of these people and brokers; they informed given quoted commissions for drawing up of bulletins. The right to conclude transactions through brokers had regular customers, persons of 1-st trade guild of Saint-Petersburg. Visitors of a department could be only observers.
(to be continued…)

Trading stock begins with an investor placing an order, which is informing the stockbroker as to what stock and how much he wants the broker to buy or sell. An order to buy or sell stock at the best possible price at the present time is called a market order. The broker conveys the order to an exchange member on the trading floor, who attempts to get a better price for the buyer by offering a little less. For example, the broker might offer 47 1/8 ($47.12.5) for the stock with a current price of 47 1/4 and see if someone will sell at this price. If the investor were selling, the broker would attempt to get a slightly higher price by offer
say, 47 3/8.
The final sale will then be electronically relayed to the bro¬ker who placed the order.
The investor might also place a limit order, which specifies the highest or lowest price at which the broker may buy or sell. If the investor can’t be accommodated immediately, the broker places the order in a sales book and then tries again in order of priority. If an investor wants to keep the order on the books he can issue an open order that instructs the broker to leave the order on the books until it is executed or canceled.
Sometimes the investor might give a discretionary order, which allows the broker to exercise judgment in making money. The investor leaves it up to the broker to decide when and at what price to buy or sell.
An odd lot is any number of shares less than 100. One hun¬dred shares comprise a round lot. Brokers usually trade shares in lots, odd lots being combined with a series of other small orders to forma round lot. A purchase of 10,000 shares is some¬times called a block sale.
In addition to the price of the stock, the investor pays the broker a commission for buying or selling the securities.
Sometimes investors pay less than the full amount when they buy stock. This is called margin trading. The FRS determines the minimum margin required. In recent years the stock margin has been approximately 50 percent. Fearing that the investor might sell the stock and abscond with the funds, the broker keeps stock certificates of margin accounts at the brokerage as collat¬eral. If the stocks were to plummet, the broker would call the investor and request that he put up more money or have the stock sold.
Active buyers of stock are called bulls. They believe that the prices of stocks are going to rise. During the mid 1980s, the US witnessed a very long bull market. At the 1987 crash even bulls became bears. A bear is an investor who makes a profit when the prices are going to fall. Selling short is a high-risk strategy which bears use in order to do that. They sell borrowed stock in the hope of later buying it on the open market at a lower price. Options are contracts that allow an investor to either buy or sell a security at a predetermined price within a certain time. Depending on the investor’s expectations, he may buy a put option or a call option. A put option grants the owner the right to sell a security. Believing that the price of certain shares will drop over some period of time an investor might buy an option and benefit from selling the shares at the option price to the person who sold the options. A call option grants its owner the right to buy a certain amount of stock at a predetermined price within a fixed period of time.

To my mind it would be necessary to know a little bit more about securities markets, than I know now. As I have already said securities are bought and sold at two types of securities mar¬kets: primary markets, which issue new securities, and second¬ary markets, where previously issued securities are bought and sold. If a company wants to sell a new issue of stock or bonds it usually negotiates with an investment bank, or underwriter, who sells the securities for it. The underwriter buys the securities from the corporation and resells then to individual investors through the secondary market.
Organized security exchanges have developed to make the buying and selling of securities easier. The securities exchanges consist of the individual investors, brokers, and intermediaries who deal in the purchase and sale of securities. Security exchanges do not buy or sell securities; they simply provide the location and services for the brokers who buy and sell.
A stockbroker handles stock transactions. A stockbro¬ker buys and sells securities for clients. Stockbrokers act on the clients’ orders. Stockbrokers receive a fee and are associated with a brokerage house. To trade on the exchange, a “seat” must be purchased. A seat is a membership. The members represent stockbrokers. When a stockbroker calls in an order to sell, the member representing that broker looks for a buyer at the price requested. When a broker calls in an order to buy, the exchange member looks for a buyer at the price offered.
The largest and best-known exchange in the USA is the New York Stock Exchange (NYSE) also called the “Big Board”. There are 1,300 seats on the NYSE and approximately 2,000 stocks and 3,400 bonds are traded daily. In. order to be listed on the NYSE, a firm has to meet the following requirements:
1. Pretax earnings of at least $2.5 million in the previous year.
2. Tangible assets of at least $16 million
3. At least 1 million shares of stock publicly held, and others.
The second largest stock exchange in the USA is the Ameri¬can Stock Exchange (AMEX). It is located in Manhattan and has about 500 full members and 400 associate members. AMEX oper¬ates in much the same way as NYSE, but smaller companies may qualify for listing.
There are also regional stock exchanges that serve regional markets.
The over the counter market (OTC) sells and buys unlisted securities outside of the organized securities exchanges. About 5,000 brokers of OTC are scattered all over the country. They trade unlisted stocks and bonds by phone and keep in contact with each other.
The prices of the securities are established by supply and demand. Electronic screens in the offices of the brokerage firms display OTC transactions, so brokers continually keep cus¬tomers up to date on the latest prices.
Options are traded on the major stock exchanges, but also on a special market for options, the Chicago Bond Options Ex¬change (СВОЕ).

When I tried to find as many as possible advices of different traders I stumbled across the story of a trader. To my mind this story is the best illustration of that things or that behavior you and I shouldn’t repeat. As I have already said we MUST learn wisdom by the follies of others.
 Anyway… At that time (it was 1999) he had already trade a month (his initial capital was $10000). His results were quite impressive – 75%. All deals made a profit. If there was any unprofitable position he immediately closed it. He was too lazy to wait when they would become profitable. At that moment it turned up to him that “devilish” security with ticker tape KIDE. That day it had risen till $45. At the same time it had cost a week ago only $29. From personal experience he knew that in the near future prices had to fall. That’s why he opened a short position at $46. The security was cheap. He had about $17500х2=$35000 and sold 200 stocks.
 The price didn’t fall and quite the contrary rose till $50. Loss was 200х-5=-$1000. But the drop in prices was obvious. He sold in addition 200 stocks at the price of $50. In a few days the price was $63. He closed all other’s positions and sold another 200 stocks at the price of $61. He was sure that the price would begin to fall. And it really began…
 Before he had glance over the news about this company and knew why the rise of stocks took place. Famous Japanese corporation had agreed with KIDE that KIDE would be a distributor of licenses of this corporation for its invention POKEMON. The trader decided that this was a new computer knickknack, very useful, but not for a long time. And the fall of prices strengthened his confidence. But he was mistaken. After short-term fall till $55 the prices whirl upward till $70 and the next day till $80. He rushed to investigate what was the POKEMON and discovered that it wasn’t a computer knickknack it was a new-coined fictitious being. He understood about what licenses were said in news. The most powerful American industry went into the action. Manufacturers began to replicate actively this creature on T-shirts, badges, caps, etc… IT WAS A CATASTROPHE!!! Next day stocks rose till $90. His account was about ONLY $1000, his broker sent him margin calls one by another. The broker demanded extra money and threatened to squeeze.
My logic told to me that this marasmus wouldn’t continue for a long time. No earnings from sell of licenses were unable to justify such rise of stocks during the month for 300%! And he had only one hope that he wouldn’t squeeze until it came to the end. To find extra money was impossible. And where were guarantees, that the market wouldn’t eat up this extra money before began to correct. Really the stock-jobbing began to fall. The prices were about $70. But the market is inertial. The new wave of price rise began. And he was squeeze at the price of $88. His account was about $3000 and the broker allegedly did him a service, because the securities rose till $95. But from this point Stocks of KIDE began to fall. And after 3 weeks the price was already $45. And after month it was $20. He was right but he lost almost all his capital…
P.S. To restore his capital he needed 2 months, but he didn’t speculate with KIDE stocks.
To my mind this trader made several crucial mistakes:
• he hoped, but the market isn’t the place for hope;
• he was too greedy for money to stop when he had a chance not to lose.
I hope that I will never make the same mistakes!!!

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