Many people want to learn to invest but are not encouraged by fear of losing their money . Lately we have heard that there are who get big sudden gains and in the same way lose them .
Investing in stock market is a path that takes time, but it is profitable and it is worth it because if you do it well it will help you achieve your important goals in the short, medium and long term.
Below is a list of recommendations from financial experts to start investing yet without previous experience .
Study and find out
Starting to invest requires knowledge , to start you can get involved knowing the investment terms to make better decisions. Consult forums, blogs that help you learn from scratch and be aware of market trends .
Go to an advisor to help you in your decisions
Investing is a new skill . It takes time and effort to read, research and find a safe path . You can learn through your mistakes, but sometimes the experience of a financial advisor is necessary to prevent you from making them and get a better profit from your investments .
Know your financial situation
Before investing, make sure you have the funds available for it . A good rule of thumb is have little or no debt , and have an emergency fund . Preferably, the amount of said fund does not have to be less than the expenses to cover your basic needs for a period of six months .
Know yourself
It is important to know where we stand how much loss are you willing to take? Is it really money extra that you don’t need for a while? what are you investing for? is this a short or long term investment? It considers that the young investor has a greater capacity to face risks than older investors, so assumes that the level of risk decreases as the age .
Do not invest in what you do not know
The number of financial products offered in the market are infinite , from stocks to futures, derivatives, options, etc., do we really understand all these instruments? One of the commandments before investing is to know well what are the characteristics of the product to which you want to invest , its time horizon, associated risk, the currency and market in which it is trades .
Diversifies
The market fluctuates constantly and things always go up and down. To avoid losing too much money when stocks go down, make sure you have a diversified portfolio . That way, you will have some stocks that are going up, even when others are falling. Diversifies into assets, sectors and regions .
Makes regular contributions
Invest systematically , making small periodic contributions to cushion the fluctuations of the market and benefit from compound interest. It is about going building and accumulating heritage little by little in a prescribed and pre-established way.
Control your emotions
The biggest obstacle to winning in the financial market is the inability to control emotions and make logical decisions. When the majority of investors are concerned about a company , the price of its shares is likely to decrease and when they present positive expectations about the future of the company , the price of its shares tends to increase .
These movements to short-term are driven by rumors , speculation, hopes, emotions , rather than logical and systematic analysis of assets , the management and prospects of the company.
How much money should I invest
A lot people think that it takes large amounts to start investing . You can start from $ 5 or as much as $ 50. 000 , just be sure to take into account your investment goals and the time in which you want to achieve them.
How to invest online?
Online brokers and robotic advisers are other places where you can open accounts.
Online brokers, such as Webull and ETrade , allow you to manage your own investments and generally do not require a minimum balance . But they charge fees for items such as trading in stocks and options . So make sure to compare what each broker charges before choosing one.
Los Robo-advisors , on the other hand, s on automated financial advisors who manage and choose investments for you. These include digital platforms like Betterment and Wealthfront , which offer low minimums and a small administration fee .
In recent dates many people have made money investing in cryptocurrencies and market phenomena such as GameStop , it is true that win but there are also those who lose a lot of money because they only follow the euphoric tendencies . It is very important that whoever wants to invest must learn and educate themselves , otherwise their resources will be very exposed and taking too many risks .
With information from Rankia and CNN