The inflation that eats away our savings and the volatility of cryptocurrencies is making investors once again trust the Stock Market to protect their money and aspire to receive dividends.Among the many features that make this an advisable investment for novices, obviously the presence of a broker or intermediary is one of the most important.
In these days in which the money we keep is worth less and less while we wait to put it to some use, more and more people are analyzing possible destinations not only to preserve it, but to earn more. While other options such as cryptocurrencies seem too volatile right now, if you want to avoid inflation and earn income, in this article you will discover how to make your first investment in the stock market. (for dummies).
After all, the world of the stock market is much more predictable than the world of crypto, and that is why so many people decide to put part of their income in stocks that interest them. In addition, brokers to invest in shares can make the difference between one type of asset and another, indicating which are the most convenient steps.
But what is the Stock Market and how does it work?
Think of the Stock Exchange as the store in which the firms that own the shares of a company, divided into the amount they deem appropriate, make them available to investors so that they can trade them among themselves. As usual, the possibility of making money depends on buying low and selling high. Nothing new.
It is the same Stock Exchange that will supervise that this purchase and sale of shares is done in a controlled and safe way, attracting more and more investors, and allowing companies to increase their value based on the publicity given.
Of course there is not a single bag but dozens of them scattered around the world, with local companies.
How to invest in the Stock Market for dummies (if you are a beginner)?
If you want to invest in the Stock Market and you are a novice, let us first recommend that you have more than enough money for day to day life, an emergency fund that you will not touch to see how the stocks are doing. Assuming that you have separated it, you must be of legal age and open an investment contract with the broker. Precisely, this character is the one who will be in charge of representing you, completing the indicated operations.
As usual, we transfer our money to the broker, so that he buys the action that most attracts us. This broker will launch a purchase offer when the stock market is open and, if it is accepted, you will have a tiny part of the company listed on the stock exchange, including the GAFAM -Apple, Amazon, Google, Meta (Facebook) and Microsoft-.
You can also invest in real estate, land, physical precious metals, art, physical or digital collectibles, etc. But, for those who have never invested, it is likely that starting with the Stock Market is a good alternative.
For those who have never invested, it is likely that starting with the Stock Market is a good alternative
Invest in stocks from scratch
Having made this introduction, you are closer to making your first investment in the Stock Market, and that means that a detailed tutorial about it could be very helpful. Let’s see what is the classic step by step for these operations:
Analyze your financial profile, considering how much money you move per month in inflows and outflowsAnalyze your psychological aspect, and how well you handle the frustration of losing and the excitement of winningEstablish an investment plan, which does not necessarily have to be long-term, but it is exempt of emergenciesEstablish both how much you want to earn, how much you would withdraw with, and how much you are willing to lose when investingDefine your investment strategy, your investor style, remembering that the higher the risk, the higher the profits… or losses, and selecting your broker according to which one you see more in line with that investment strategy Diversify your assets in the Stock Market, so that falling stocks do not mean big losses
In any case, there are many brokers, so it is better to check what each one can offer you and, only then, choose that intermediary that will facilitate those always exciting first operations in the Stock Market.
Do you feel ready to make your first investment in the Stock Market?
Disclaimer: The content and links provided in this article are for informational purposes only. islaBit does not offer legal, financial or investment recommendations or advice, nor does it replace the due diligence of each interested party. islaBit does not endorse any investment offer or the like promoted here.
