The stock market is an alternative to increase your savings. Check what you need to know and consider to transform your income into profit.
To participate in the stock market you must know its components, its players and the laws that regulate it. Understanding every detail will make a difference when proposing more profitable strategies in your investment strategy. If you are looking to take the big step towards the stock market, know these 10 tips to invest better in the stock market.
D and the main reasons a person seeks to invest in the stock market is to increase its equity and thanks to the facility to do it, anyone can do it. However, few are encouraged because they do not know how to start.
The first thing you should do is develop a plan that sets your financial goals with the intention of identifying why or what you are going to invest in, the term and how much you have to do it.
Remember not to invest in instruments that you do not understand
Once you have defined it, remember not to invest in instruments that you do not understand or do not know how they work. The reason is simple: the more you know the types of instruments, the greater your ability to obtain better profits.
If you have already decided to invest in the stock market, according to the National Commission for the Protection and Defense of Users of Financial Services (Condusef), these tips will help you take the first step:
Make your investment plan to set goals for how much you are going to invest and in how long.Educate yourself: the stock market requires your dedication and preparation. One way to start is to be aware of what is happening in the Europe and global economy, especially what can impact your investments.Define your investor profile: when you know your profile type, you will detect the instruments that best suit your needs and goals.Find a financial advisor: that way you will clarify all your doubts and decide what to invest in.Keep a record: with your financial advisor you can periodically monitor how your investments are going. The purpose is that you keep a check and identify if it is related to your objectives or if you should reevaluate your plan.
Take care of your investment term: don't forget that the stock market is volatile. Don't panic if you have losses. In the medium or long term you can recover.
Secure your investment plan
Look for your earnings, either from the purchase or sale of shares, to be those estimated in your plan.
A good starting point is to choose a debt investment fund: analyze the historical returns of this type of fund to choose the one that best suits your plan. Search for regulated intermediaries: invest only with financial intermediaries authorized by the National Banking and Securities Commission (CNBV).When you're ready: do it with an entrepreneurial vision. Think about what type of company you want to put your money to work or which one you would like to own. Remember that investing in the stock market is about equity decisions.
As you can see, you should not be a financial expert to invest, although it is important that you get advice to start doing it.