Invest in Stock exchange: First steps
How to initiate in the world of the Stock exchange?
Invest in Stock Exchange it is to participate in the securities purchase and sale, such as stock of public limited companies, public bonds and private, and a broad instruments variety of investment, in order to obtain profits.
It can seem something complicated for someone that it does not have financial knowledge, but really is within reach of anyone. Of course, before giving the first steps, it is fundamental know some basic principles on its operation, in addition to be clued up of its security, return, liquidity and flexibility that, broadly speaking, are above the investment in other assets, as properties or the art.
How you can achieve profits in Stock exchange?? One of the ways is buy stock of a company and to sell them when they go up of price; another is via the dividends or, which is the same thing, profits that distribute companies between its shareholders.
The Liquidity it is one of the great advantages of the investment in the stock market. If need to have your money, can sell your stock in an instantaneous way, and you can sell just the amount that need, maintaining the rest.
Risks of the equities
The investment in Stock exchange supposes to assume risks, since it is to invest in equities subjected to a tall volatility, that is, to a great oscillation with an upward trend and with a downward trend of the contribution. But is precisely that risk which it allows obtaining one great return that that which offer other financial products. Thanks to the compound interest, if gains are accumulated over time, it is possible to obtain great profits. But also are been able to suffer great losses.
Common sense and diversification
Although the Stock exchange can be a very profitable investment, it is necessary to use the common sense e invest with criterion. It is impossible to know in good time which is going to be certain stock' yield nor if they are going to turn to an investor in millionaire or to take him to the ruin. As a rule of thumb, is always must to consider that a last return does not guarantee future returns.
That is why is recommendable be cautious and, especially in the case of the investing novice, invest small amounts in Stock exchange, to go increasing figures gradually, custom-made in which allow it financial knowledge and the economy staff. In addition, is fundamental invest just the money that it is not going to need short term.
A good trick to avoid to lose money is put on a figure limit before investing or of selling some stock.
The diversification it is essential when to invest in Stock exchange, in order to be able to equilibrate possible losses with gains. It is fundamental to diversify so much in products, as in instalments, sectors, type of companies o geographical areas.
To choose in what products to invest can use a fund comparison tool that you will help to choose at all times which more interests you, of comfortable and sure way. You will be able to consult, and compare, at any time the yield of each product, its evolution, the fees that you will have to pay... It does not be necessary to have a great heritage to diversify the investment, can invest a small part of your savings in the Spanish Stock exchange, and other small amounts in Japan or THE USA, for example.
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