How to invest in the stock market, take their first steps.
The bag is not reserved for the rich and bold. Anyone can invest as long as prudently and long-term. Just have a good strategy and how to get started.
In the long run, investing in stocks is more profitable than applications without risk. It is expected to get an annual return of 7 to 8% in stocks, compared to only 3-4% per year in risk-free investments (before tax). In the long run, this difference has the effect of a snowball: after 10 years, for example, the capital invested in stocks must be at least 10 times. But beware: there is no income guarantees. This prediction is based on past and in the event that the economy continue to grow.
Shares or funds
Apply in purse the savings that will not need in the coming years. With the rest, prepare a foot-egg for contingencies. Choose an application without risk and liquidity, allowing it to raise money at any time, without being subject to time limits or penalties: for example, a deposit of 1, 3, 6 or 12 months, depending on the needs.
The decision to implement the savings in stocks or funds depends on the amount to be invested and the willingness to follow the investment. If you have time, you will and financial knowledge, can choose their actions and compose a portfolio. Otherwise, opt for a fund managed by professionals. There are no set rules, but less than EUR 10 000, it is better to opt for a diversified investment fund as it has a limited risk. It’s easy to subscribe and redeem accessible and requires minimum amounts.
To invest directly in stocks, should have 10,000 to 15,000 euros at least. So, you can apply your savings in a number of actions. 10 to 15 stocks is enough to greatly reduce the risk. Apply a minimum of € 1,000 per share, reduces the weight of the committees of intermediary. If you can not, the weight of the burden can become the least profitable investment than a term deposit.
Trading in stock
An investor cannot trade directly on the exchange. To buy and sell shares must appoint a dealer authorized by the Securities and Exchange Commission. You can see the list of qualified entities refer to the site of this organism. Like most banks also already a brokerage service, some investors prefer to continue working with the bank where they are already customers. But this option may not be the most advantageous.
Whatever you choose, you can almost always give stock orders through various channels:. Desk, phone, fax or Net Stay tuned: the costs vary greatly depending on the broker and the channel used but generally saves tens of euros to negotiate by Net.
To debut, needs an open account. If you are already a customer of a bank and want to continue working with the institution, you have carte blanche to proceed. If not, you must open an account. The process is simple:
If you use a broker to trade on the stock exchange, you must open an account-titles, which will deposit the money to invest. This works like a deposit account to the normal order;
If you open a bank account, your account will be linked to the main order an account-bonds, with different number where the shares will be deposited. In practice, you must open two accounts.
Divide and rule
The bag is not a casino. Many first-time investors play the stock market and hope to make money in just a few days or months. But an investment for less than three years is a mystery: no one can predict the evolution of the short term market.
Investing in stocks can give a higher yield than risk-free product if it is embraced by a minimum of 5 years. In the long run, the yield should be around the growth rate of the economy; and if you join the growth of dividends regularly disclosed by listed companies, can arrive at an average yield 7-8% per year.
But beware: such investment has risks. To limit them, choose titles from different countries and industries. By reducing the fluctuations in your investment, increases the chance of winning with the growth of the global economy.
Manage stock portfolio
After constitute a diversified portfolio and have signed several investment funds, not worth multiplying the purchase and sale of shares. If you do, you pay transaction fees raised, or fixed according to the amount of business that weigh on income. Apart from these, you must rely on the exchange rate, safe custody costs and commissions on dividends. Be patient and let your investment grow.
Follow the evolution of any investment in the stock exchange. And invest for the long term is not synonymous with inertia. Timely react to the movements of companies, such as exchange of shares, issuance of new shares in capital increases and takeover bids. Finally, closely follow the evolution of the price of its shares.