Investing Money Online for Beginners
Anyone who deals with the current credit interest rates will come to the conclusion relatively quickly that traditional financial products, such as overnight and fixed-term deposits, savings accounts or capital insurance, no longer lead to the desired goal. The profits that are made here are eaten up by inflation. In the end, you experience a real monetary loss.
But what other alternatives are available to private investors? Can you, even as a beginner, use the investment methods of the professionals and what profit can be expected? We clarify all questions on the topic.
Why should you invest money?
If you look at various forecasts, savers should not look forward to a rosy future - there is still no indication that the European Central Bank will change course and embark on a new course.
So if you want to invest profitably, you need alternatives. Here are about:
- bonds,
- shares or also
- Leverage products available.
But many people simply do not dare to invest money in such alternatives. Not only do they have great respect for the stock market and related investments, but they are also afraid of losing all their wealth.
But the money only becomes less if it is parked in a call or fixed deposit or even in a savings book such as a checking account. If you don't deal with the quite attractive alternatives, you miss out on extremely large profit opportunities.
Above all, equity investments are highly recommended - especially with a low-risk strategy - if you take a look at the possible returns that can be achieved. After all, you don't have to put all your savings on one card and decide on high-risk strategies - anyone who deals with the stock market will quickly realize that there are also reasonably harmless ways of increasing your money.
How do you invest money?
How to invest money It is important to note that you cannot simply buy mutual funds or stocks at the stock exchange during an afternoon of shopping. Anyone who decides to invest in these funds must do so in advance
1. open a depot and also
2. have a place of safekeeping for the acquired securities.
However, this should not pose any major challenges for future investors: simply make an appointment with your bank employee or open an account directly with an online broker. It is important, however, that you carry out a comparison before you open an account.
At this point it can be said that the offers from the online brokers are much cheaper than the offers from the branch banks.
If you make a comparison, it is advisable not only to pay attention to the fees, but also to compare the services with each other. There are various platforms on the Internet that can be used to carry out a free comparison.
How much should you invest?
How much should you invest? There is no upper limit for stocks. If you have a lot of capital at your disposal and believe that you should invest most of it in stocks, this is legitimate and sometimes also promising if the market moves in the right direction. Of course, it also depends on how expensive the shares are - if you invest in a company that offers shares for 2 euros each, you can buy a relatively large number of shares with 1,000 euros. On the other hand, it is different if you want to buy shares in Facebook or Amazon with 1,000 euros.
It should be noted that high investment amounts naturally reduce the relative costs.
Every share purchase and sale incurs order fees, which must be taken into account in advance. This means that before you invest in shares, you should find out what fees are incurred in the course of comparing brokers.
Experts recommend investing no less than 1,000 euros in a public company. If this sum is too high or if you do not have such high assets, you should look for an alternative.
You should also be careful when you land on websites that report on promising strategies. Of course there are strategies with which you can definitely achieve high profits - but there is no strategy with which you always celebrate success.
In the end, it is important that you only invest the amount that you can actually afford. It should therefore be a sum that is freely available and that, as hard as that may sound, can also be lost.
Because of course the market can move in the other direction, so that you suffer a loss. In addition, it is also important that only that amount is invested that will not need to be accessed in the coming months (or sometimes years). This means that there is no need to sell during bad stock market times - if you can wait for any price falls, you don't have to part with your shares at the worst possible time.
As already mentioned: If you find that you don't have enough money to invest in shares, it is advisable to look at alternatives. The so-called savings plan is particularly recommended here.
How to become – and stay – a successful investor
With the following points in mind, you are definitely on the right track to becoming – and ultimately staying – a successful investor.
- You have to understand the difference between consuming and investing.
- One should know what is being invested in - "blind investments" are dangerous; Ultimately, it's not about "red" or "black" in the casino, but about being successful with the right strategy.
- It is important that you also invest in your own education - you should therefore deal with the various further training opportunities, some of which are also offered on the platforms of the online brokers.
- You have to have fun doing it - if you're constantly scared and tense up, you won't be able to celebrate success.
- Gaining experience – at the beginning it is all about the experience; those who see themselves as experienced investors can sometimes put more money into riskier products.