How to invest in the stock market for beginners

stock market

They say that the crisis sharpens ingenuity and we are now at a time when many people see making a profit through stock trading as an alternative. But, there is always a but, there are cases in which there is the stereotyped idea that we see in movies or series, where the biggest problem of the Traders is to shout “buy!” or “sell!” And when these people enter the stock market for the first time, they find that not everything is as in fiction. At the time they make their first investment, many feel disappointed or even scammed when they see that the world of finance is not as simple as they thought and that it has great risks that few are willing to assume. In any case, be very calm, because today we are going to give you some tips on how to invest in the stock market as a rookie and thus not lose all your money in the first transaction .

If you don’t know how to invest in the stock market: learn

The first and most important point is that you do not make the excuse that you are a beginner and therefore have no idea what you are doing . In this case we assure you that ignorance does not bring happiness. So invest a little of your time in training. Read investment books, economics blogs, watch the news, read articles… we are in a time when we have all kinds of knowledge at our disposal !! So take advantage of these facilities and “nurture” knowledge. We are not saying that you have to understand the trends or know how to create strategies, simply know simple terms, such as what the IBEX is or the fluctuation and the different markets that are available to invest. If you are clear about the most basic concepts that surround the stock market world, we assure you that you will not only know what you are doing, but that the possibilities of generating profits will increase markedly.

Preparing to invest in the stock market

After controlling some terms of the Stock Market and having some basic notions about how to invest in the stock market even if you are a novice , it is time to invest. This is the most difficult moment for beginners in this type of transaction because there are many companies that are on the Stock Exchange and all of them, to a greater or lesser extent, are attractive and can attract our attention simply because of their figures or behavior. But before launching to buy we must take into account two important points .

The first is that they are long-term investments. This is something very obvious, but there are many people who believe that you buy today and you can sell tomorrow. This thought is completely contradictory to reality, since this type of transaction has to be done at least half a year or a year ahead.

And the second point, and no less important, are transactions that require having a large amount of money. This is also evident, but as we emphasize again, there are beginners who believe that investing in the Stock Market does not cost a lot of money and therefore there are no great risks. It is a big mistake, again, to think like that again. In order to invest in the Stock Market without much experience, we must be clear about how much money we have, how much we are willing to use and finally how much we use.. It is important, almost vital, to have a well-defined figure of how much money we are willing to invest. And in order to have that figure, it is important to see how much money we have saved and divide it up. That is, save a part of money in case there are unforeseen events or to use in our day to day. Finally, when we already have the final sum clear by subtracting figures, we will know within what limit we can invest. Believe it or not, it is a way to ensure that if we generate losses, they will not have a very large impact on our portfolio and therefore will not affect our lifestyle.

Tips for your first investment in the stock market

And the time has come to invest. As we were saying, seeing so many figures in green in some companies makes our eyes wander and we end up investing without knowing exactly what we are doing. So the first great advice we give you on how to invest in the stock market is to analyze your knowledge . As you can see, there are companies of all kinds and from all sectors on the Stock Exchange. Analyze which sectors you control the most, such as construction or distribution . Once you are clear about what you master best, just move around that new framework that you establish, since knowing what you are investing in also ensures that your chances of obtaining profits increase markedly .

Once we are clear about the money and our “comfort radius”, it is time to assess the available companies. It is important to keep in mind that never, or rather never, trust unfounded rumours. In fact, we risk advising you to leave the rumors and gossip to the pink press and do not trust word of mouth if there is no clear evidence.. That doesn’t mean that you can’t let them advise or advise you, but it does mean that you don’t believe everything you can hear. Have criteria, analyze and investigate a little, if after that you see that the tip that they have given you is correct, then assess whether or not it is time to launch yourself! However, if you have doubts about the source or that it could be true… just turn a deaf ear! Keep in mind that in the world, in general, it is impossible to trust everyone, and in the end we are always left with the typical motto “don’t even trust your own shadow”. Well, if you follow this motto in your life, why not use it when your money is at stake?

How to invest in the stock market: Choosing candidates

When we do not know how to invest in the stock market because we are novices and we begin to assess which stocks to invest in, there are many factors that can lead us to make the wrong choice . For example, as we have already said, the attractive figures presented by some company or rumors that are not checked. How to invest as a beginner and not lose out? Very simple: start by investing in large companies.

Invest in the big firms

There are large multinationals that are always on the stock market and although their values ​​go up or down, they never disappear. This is a safe bet because it not only gives confidence, but also shows that it has an important role in the stock market world and that, sooner or later, it can generate profits for us.

Value your career

Another option to assess is to observe the years that the company has been founded and the years that it has been on the stock market. This experience and seniority shows, as in the previous point, that it is a reliable firm and that we can make a safe bet, since sooner or later it can bring us benefits .

Be patient and do not sell at the first change

Last but not least, when you have already bought your shares: Do not sell them at the first opportunity ! This attitude is what makes us often sell shares for a small amount of money, which would triple if we had waited. So it is important that you maintain your investments and that you do not get carried away because they go up a few points .

How to invest in the stock market: choose your candidates well

The world of the stock market is unpredictable and what goes up now can go down or… go up even more! So do n’t get carried away and learn to find the right moment to sell your shares . This is closely linked to events occurring worldwide. A clear example of this is environmental catastrophes, which can cause all values ​​to change completely and surprise us. For example, the earthquake that struck Japan in 2011, which caused the shares of renewable energy companies to rise, surprising investors. Therefore, the key is to maintain the actions and always be informed. By following these two simple steps even a novice can reap great benefits.

About Kushal Enugula

I’m a Digital marketing enthusiast with more than 6 years of experience in SEO. I’ve worked with various industries and helped them in achieving top ranking for their focused keywords. The proven results are through quality back-linking and on page factors.

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