Too any people lose money on the stock market, this stops today! rightly so! We'll tell you what you should consider when getting started with five simple tips, so you can avoid losing money.
What stocks should you buy? First of all, it is advisable to observe the stock market for a while before you actively get involved. In this way you already get a feel for the processes. If you are interested in a particular share, you can also view the AG's annual report, current quarterly figures, analyst reports and economic forecasts. Or you use the expertise of professionals and use the best stock apps that help in finding the best uk stock brokers and online trading platforms in which one or more fund managers take care of markets and analyzes.
Once you start with an equity fund, your money will be divided into hundreds of different values. This is how you minimize the risk in the event that a company writes bad numbers or even goes bankrupt. Do you want to take a little less risk? Then so-called mixed funds are also interesting for you, because they invest the money not only in shares but also in interest-bearing paper. So you spread it out twice: You distribute your money between shares AND bonds - and again within these two asset classes on many different individual values.
If you know that you will need the money for a living, repaying your personal loan or other purchases in the next five years, keep your fingers away! Because you should avoid a fixed time of sale, which could then be particularly unfavorable.
Of course, you go into the stock race with the expectation of achieving the best possible return. But the stock market is always on the move and your portfolio can sometimes have losses at some point. You therefore need staying power when investing in the stock market. Exchange rate fluctuations are normal and occur again and again. Don't panic and be active.
If you rely on quick profits, you will inevitably have to bet on a risky investment. That can go well, but far too often beginners fall into a trap here. Because with an unbalanced portfolio you could end up looking bare. On the other hand, if you show patience and invest with foresight - for example, by regularly saving with a fund savings plan - you have a much greater chance of making the best possible investment.
Hopefully the fact that you buy a stock and sell it off after days or weeks remains the exception. Because if you act a lot and quickly, you produce one thing above all else: costs. Fees are payable when buying and selling, which must first be recouped from the performance of the share or a fund Instead, you can set a “stop loss” limit as a safety measure, which is a value from which you definitely want to sell your investment.
It is best if you talk to your investment advisor regularly - preferably at least once a year - about your portfolio and make adjustments if necessary.
Let your money work for you. This sentence best describes what compound interest means for your investment. It is the lever with which you can exploit your full potential. The idea behind it is relatively simple: you reinvest your profits or interest in order to generate further income from it. So you add your winnings to the capital invested, so that you have the chance of bigger returns. With funds, reinvestment usually happens automatically. The compound interest is one of the most important mechanisms of wealth creation. It pays off for you especially in the long term. So use this effect to significantly increase your assets.