Today's article is about the capital market for beginners. But before we start there is something that is important that you know Whether you like it or not, your life and the stock market are tightly connected together.
The millions of shekels that you will accumulate in the pension fund are invested in the capital market. Education funds, insurance, savings, all may be invested there. In my personal opinion, Every adult in Israel must understand the capital market. If you don't understand, they will be able to soap you up, and you will have no way of knowing it.
Quick summary for the lazy:
The best way to learn the capital market is by jumping into the water. Once you start reading charts and trading, it will be very easy for you to invest even in the long term.
For starters, you have an excellent free course here with over 70 lessons and about 11 hours long. The lessons are divided according to 11 larger lesson plans. The course teaches you all the basics that you are taught. I invite you to watch now at the following link:
70 free lessons - the capital market
The series teaches lessons for free that take a lot of money. Among the free contents:
- A lesson on opening a trading account
- A lesson on technical analysis
- Lesson on shares
- A lesson on trading orders
- Risk Management
- and more
צפייה מהנה 🙂
If you are a long-term investor, it is recommended to invest in an index or ETF rather than in a single company in order to minimize the risk.
In the guide we will talk about the capital market for beginners, and we will assume that you have no background in economics or commerce. We will talk about basic concepts that everyone must know, strategies for beginners, and how it even works.
The capital market for beginners - a little order before entering
First of all there is an important point that you should understand. No one knows for sure what is going to happen in the capital market. If someone knew in 100% what was going to happen every time with each share, he would very quickly become the richest man in the world.
Anyone who trades stocks, invests in bonds, and generally deals in this field will have times when he will make good money, and there will be times when he will lose. So what exactly is the difference between this and gambling? And why do so many people do it?
Basic concepts for beginners
Return - the ratio between the economic value of the investment at one point in time, compared to another point in time (in the way we talk about a year). For example, if we invested NIS 100,000, and we have a return of 10% per year, then at the end of the year we will have NIS 110,000.
Shares - a security that gives its owner a share in the ownership of the company. That is, if you purchased such paper, you have rights in the company, including the right to receive dividends (profits that are distributed to the shareholders).
Bonds - a security that is a commitment to pay a future debt. For example, and a certain company (for example, the electric company) wants to take a loan from the public, it can issue a bond, in which it undertakes to return the money plus a certain interest and/or plus monthly payments.
The difference between casino gambling and stock market trading
The key difference between trading in the stock market and the stock market is that the profit expectancy in the capital market is positive, while the profit expectancy in the casino is negative. Or in simple words - if a person gambles in the casino a lot of times, in the end he will be at a loss, even if he won some of the games.
In contrast, a person who invests in the capital market enough times and for a long enough period of time will be profitable in the end. It's not just that the richest people in the world invest in stocks, bonds, foreign currencies and more.
In addition, unlike the casino where everything depends on luck, in the capital market the more you learn, research and experiment, the more success you will have. The capital market is not a place for beginners who want to earn without learning and making an effort. is a place where the more you know, the better your chances of winning.
לפני שנמשיך החלטתי שכדאי שתרגיש קצת איך מסחר מתנהל ומה בכלל עושים שם. בשביל זה הכנתי מצגת קצרה וקלילה שתעבור אתכם על אחת משיטות המסחר הכי נפוצות – ניתוח טכני. תהנה 🙂
Of course this is only the tip of the iceberg. Before really starting to trade there is still a lot to learn. I know many good courses that teach quickly and practically how to trade and invest correctly. All you have to do is find a quality place that teaches in the field and not in theory, and they will teach you the rest themselves.
Different strategies in the capital market - long and short term investments
For the sake of order, we will separate long-term investment from daily trading. Those who do not have large savings that they want to invest over the years are invited to skip to the paragraph - "Important tips for short and smart trading".
long term investments
Regarding investments - if you have money and you are not really looking to earn returns from it but only not to lose, you will probably leave the money in the bank. This is the way where there is no mess or risk but your only profit is the interest (as of this writing it is 0.1). What most people don't know is that the interest rate is not the same for everyone, and in many cases it is possible and even recommended to argue and get better terms. You have a lot to gain and nothing to lose. Especially if you have a considerable amount in your account.
If you want a good return on the money you have, you will have to turn to other channels. If you chose to invest in the capital market, there are investments that are considered safer - government bonds for example. Although they have a low return compared to shares, they are considered very safe. A safe investment with a little more return is an investment in a "basket" of shares that brings together many companies. Investing in a basket is considered much safer, because if one falls you have all the others.
Examples of baskets:
s&p 500 – the 500 largest companies in the United States
Tel Aviv 25 – 25 largest companies in Tel Aviv

Important tips for beginners - smart and short trading
If you want to trade (buy and sell on a daily basis) you will have to open a trading account. This will usually be the direction of young people who do not have a lot of income, but have a lot of time and motivation to follow and learn on the one hand and the ability to take risks on the other.
In daily trading you can get a high return in a few days and instead of waiting for a few years, but you can lose just as much.
Regarding trading shares regularly - there is an option that I think is a bit smarter, but it requires some knowledge and monitoring and is an investment in a certain organization/company. You can follow a company in the newspapers, through people, jobs there, on the Internet, and basically in any way you have. And so the chances that you will make the right buying and selling decisions will jump a lot.
The most important tip I can give you is to look at the trend and think whether it makes sense or is it actually a "bubble" that has been created. If, for example, the value of the shares of a company that is on the rise and developing is low, it is only a matter of time until it rises. If a new but not useful startup made a big buzz and "inflated" it's probably only a matter of time before it falls.
In conclusion
As I already mentioned before, there is a lot to learn in this field, and it will be very difficult for you to enter the trading field in an organized manner from reading on the Internet no matter how good you are. In order to succeed in making good money in the capital market, and trade smart instead of relying only on luck, you will need to learn theories and gain experience in the field.
Another thing, if you are trying to find articles on the "capital market for beginners", the best is in English. In Hebrew you will find very little content and value, and a lot of marketing, introductions and promises.
In any case, I think it's worth studying the capital market in depth. Like it or not, your life is spent there. Your pension funds, training funds, managers' insurance and the list goes on.
You are welcome to read reviews and more information at the following link - Studies at the summits, reviews and more information
Good luck!
You are of course welcome to continue enjoying the useful guides on the site.
Finally, some last concepts you should know: