It is surprising how many people want to learn to invest, but for various reasons do not dare to do so. It is also very common to meet people who are encouraged to take the first step but end up leaving it without achieving their goal. It is a path that takes time, it can be tough, but it is profitable and it is worth it. With these 7 share market tips and Stock option tips to learn how to invest in the stock market, I want to help newbies to start this path successfully without just trying.
Tip # 1: Learn to invest from the best
It is important to know how to separate the grain from the chaff. The media, especially the internet, are full of bogus investment gurus who sell foolproof ways to invest in the stock market and make big money in a short time. Most, if not all of them, are charlatans who earn their living by selling useless books and courses at exorbitant prices.
What do most of the best investors have in common? Who invests in long-term stocks following the philosophy of value investing. They do not trade intraday, analyze charts, or invest in highly leveraged derivatives. Do not sell the motorcycle with false promises, if you want to learn to invest like the best you must focus on value investing.
Tip # 2: organize your finances
Before making any type of investment, you must order your finances, that is, that you learn to manage your money in a disciplined and constant way. Make a monthly budget taking into account your inflows (income) and outflows (expenses) of money so that you can determine the amount you are willing to invest. Likewise, it is important that before making any investment you pay off all the debts that you have contracted, remember that once you start investing your investments will become a new use of money, which you had not previously contemplated.
Tip # 3: Seek advice
To form an investment portfolio you must know the mechanisms with which the stock market works. There are various financial institutions, such as banks and brokerage houses, that have advisers, who will help you know the risks to which you are exposed if you want to invest, as well as the estimated time necessary for your investments to yield the results you want. Also, they will advise you to place your money in the best investments. Remember that part of the money you spend on investments will go to the advisory services you use.
Tip # 4: Know your profile as an investor
Depending on the time you want to allocate to managing your investments and the risk you want to assume when investing, you must decide if you are a passive investor, with which you would have to dedicate 4 or 5 hours per month to manage your portfolio, in addition to Your risk profile would below, so you should invest in funds. If you are an active investor, you would have to dedicate at least 6 hours a week to managing your assets, and your risk profile would be high, so you could invest in stocks and coins.
Tip # 5: Do not invest all your assets
Even if you have decided that your risk profile when investing is high, that is, that you can tolerate fluctuations in the prices of the shares you have acquired, it is not recommended that you allocate all your assets to investing in the Stock Exchange. Values. This is because these fluctuations, as well as certain investment schemes, will not allow you to have the money invested in case you have an emergency or if you are scheduled to make a major expense. It is best to allocate a fixed amount with clear objectives.
Tip # 6: Invest through authorized intermediaries
The only stockbrokers authorized to buy and sell shares are the brokerage houses, so to invest in the Mexican Stock Exchange it is necessary to open an account in one of them. There are a large number of options to enter the stock market, you must compare which one suits your objectives and your investor profile, as well as verify the qualifications given by national and international consultancies for the portfolio in which you want to invest.
Tip # 7: Continuously analyze the behaviour of your investments
Keeping a journal of the purchase and sale of shares, as well as the reasons for buying and selling, will help you to know your mistakes and successes, making it easier for you to develop a long-term investment strategy. Studying your own decisions will help you to know more about your profile as an investor and your risk tolerance. Likewise, analyzing the behaviour of your investments will give you, with patience and discipline, the ability to take advantage of different opportunities more effectively.