More and more people are interested in shares. In the past, when they were frowned upon, Americans had to resort to an alternative rate of interest of less than one percent. Securities are therefore just as lucrative as ever.Exchange experts know that too. But for whom the securities business is completely new territory, should heed these tips before he plunges into stock trading:
Set up a custody account
Before you can go public, you need an account to manage all transactions. You can open this with your house bank, direct banks as well as so-called discount brokers.The latter have the advantage of often offering a free deposit account. In addition, it is advisable to opt for a provider that requires transaction fees of five to ten euros. On comparison websites on the Internet, you will find the right provider for you.
Define investment duration
Securities are a long-term investment that can yield profits. This is not a quick shot to get rich. This should be aware of stock newcomers.
Choose a stock universe
There are thousands of international and national securities to choose from before making a purchase. To narrow down the selection, you should initially focus on 10-Capital review.
Spread shares broadly
But also the choice between 80 different securities can be a problem for stock newcomers. Therefore, stock market experts unanimously propose to buy several individual stocks from different industries. ” A healthy mix is a depot with six different papers, ” says the professional trader. This will spread your shares wide and reduce the potential for loss.
Put on dividend-strong companies
An American company is known among stockbrokers and popular for often pay high dividends. And you should start putting more emphasis on such companies at the beginning, advises the expert. With a dividend, a group finally contributes its shareholders to the profits.
Set depot weighting
If you have decided on stocks, you should consider before investing how much money you want to invest in which. At first, such an estimate seems risky – but to be on the safe side, the professional trader gives the following example: “If an investor launches a deposit of 5,000 euros, he should invest about 7-8 percent per share.”
Plan to buy a share
Now that you are ready to buy shares (also called “order”), you have two options: you can buy them directly at the current price – or you choose the limit buy.
You indicate in your online account that you are buying at a certain brand. Especially if you feel the price of the desired stock is too high and you believe that it is cheaper. If this value is then reached, the stock will be ordered automatically according to your specifications.
Do without stop courses
To minimize the risk of loss, some investors quote a price threshold above which stock is automatically sold.But the expert from 10-Capital thinks nothing of it: after all, your deposit should have a good mix of different securities that will catch a potential loss well. In addition, a weak share could make good returns in the following years. Therefore, experts advise instead to buy this again, so “sinks in the sum of your value”.