Investing is a tool through which you can earn multi-million and even multi-billion fortunes. The richest people in the world remember how they started with the right investment of a hundred or two dollars. Therefore, some of us often think about how to learn to invest to receive sufficient income for a secure life.
It may surprise you, but there are a lot of investors. More than 13 million brokerage accounts have already been opened in Mosbirzhe alone.
Where to start for a newbie?
You can find a lot of advice in this part, but not all instructions on how to become an investor are correct. Often in the recommendations the best way to learn investing from scratch, for a beginner offer to solve your financial problems first. The main idea is to set aside the amount of money you don't mind losing. In addition, it is generally recommended to regularly set aside a percentage of monthly income that can be invested.
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Some believe that before becoming an investor, you need to close the loan. This is not the best solution: people often underestimate the amount of monthly expenses and get even more indebted. The ideal recipe is this: First, agree with the bank on the lowest monthly payments. Second, set aside some of your income to pay off the loan and invest some of the money. In order not to lose motivation, close the loan and buy what you wanted.
But there is another important component: an effective tool in the work of an investor is knowledge. Morning viewing of financial and stock news, regular monitoring of the securities market will become part of your lifestyle. It is important for the novice investor to realize this.
What knowledge is needed? This:
- economic and financial, without which no competent investor can do without;
- political – you will have to be aware of all events as they directly affect the economy;
- get an idea of the industry of the companies whose shares you buy;
- General: A broad view will help you see new investment opportunities and avoid non-obvious mistakes.
Investing on your own or with assistants?
on advice for beginners on how to learn to invest step by step, recommend the use of the services of a trustee or mutual investment fund (PIF). In this case, a person gets rid of the “headache” – the need to be constantly aware of the intricacies of the securities market.
Typically, an investor builds a stock portfolio on his own. Sometimes this ends badly: an amateur only buys shares in companies in one country or one sector. If you are not sure about yourself, then use fundraising services. They buy shares of trusted companies and, in some cases, entire funds. There are about 600 of these organizations, if not more. When choosing, pay attention to the period of their existence, volatility and profitability.
By the way, about profitability: it is often lower, since part of the portfolio is made up of stable, slow companies, but growing in price. On average, you can get 10% a year, but it turns out that funds pay much more – up to 30%.
Another option for beginners is to find partners on an equal footing. It could be relatives or friends. It may happen that your knowledge and experience help to quickly achieve a result that would take years if a person acted exclusively on his own.
Stocks or bonds?
Bonds are securities with a yield not exceeding 6% per year. The advantage of this investment is stability. You are guaranteed to receive the money you invested as soon as the period agreed with the state or company ends. You will also receive interest – their income is small, but it will block inflation.
Although bonds are safe, many still prefer to sit on a powder keg, invest in stocks and have no experience in the stock market. What tools to use a beginner to learn to invest from scratch in reliable stocks companies?
The investor must choose the right broker. This is a specially trained person who works on the stock exchange, carrying out tasks of buying and selling assets. The broker must meet the following criteria:
- have a license for the right to engage in brokerage activities;
- be accredited on the main exchanges and trading platforms;
- have an acceptable limit of entry into the stock market for the client, that is, the minimum amount on the basis of which the broker is ready to carry out transactions;
- offer you a reasonable commission: a percentage of each trade or a flat fee.
You also need to open an individual investment bank account to provide certain tax-related benefits.
deciding in which it could be investeda person must decide on a strategy: understand how much risk he is willing to take, working with which assets are most attractive to him.
How to distribute money?
in the recommendations ofin shares which companies to invest start-up capital, it is advisable to start with the purchase of shares of startups, which are estimated by experts as promising. These stocks are cheap, the risk is low, and you can easily start building a portfolio with them. It is true that the shareholder will receive the first dividends in two years, not sooner.
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In addition, when developing a strategy and plan, how to start investingAsset diversification is important. People call it "don't put all your eggs in one basket". Even an issuer that looks reliable and promising may experience better strength and assets will go to zero. If a company or a venture fund offers to invest, promising high returns during the year, this is, of course, cause for caution.
And most importantly – understand that success in investing activities directly depends on daily hard work. The investor is a smart economist, a prudent strategist, a broad-minded person. Without these qualities, good portfolio management is simply unthinkable. Becoming an investor is a difficult journey. But the result is worth it!