stock market how to invest

Stock Market How To Invest

Stock market how to invest online and wisely?

Saving or investing money – what makes more sense?

Today we will talk about how to invest in stock market wisely. Many people would like to invest money – in stocks, bonds or perhaps leverage products and alternative investments. However, they often have (too) great respect for the stock market and all investments that go beyond the checking account or passbook. This allows them to escape big profit opportunities. After all, even stock investments have so far achieved significantly higher returns in the long term compared to interest rates for savings deposits, even with a low-risk investment strategy. It is wrong to think that only professionals or wealthy people can invest in the stock market. Of course, deciding and implementing these investments takes time and initiative – but anyone can afford it. This article deals with the basics of investing in the stock market. General information on how to invest your money can be found here: investing money for beginners.

What is the difference between the investment products of the bank and those of the stock exchange?

Banks often offer call money and time deposits as investment opportunities. The advantage of these investments is that their risk is not so high: bank deposits on the savings account, for example, are covered by the European Deposit Guarantee Fund up to an amount of € 100,000. By contrast, when you invest your money in a company on the stock market, you run the risk that this company may eventually become insolvent and you do not see any of its capital. Bank deposits are therefore something for investors who are more concerned about security. By contrast, they can generate much higher interest rates and returns on the stock market through dividends or gains from price increases.

What are the best ways to invest money?

There are many different investment products on the stock market where you can invest money. They can be subdivided into stocks, bonds, funds, exchange-traded funds (ETFs) and leverage products.

Newcomers are often recommended ETFs, also called index funds. These are funds that are not managed by a manager, but replicate a stock index – such as the DAX. As a result, the investor benefits from a positive overall performance of the market – and does not work “against” the market, like a fund manager. ETFs are also very cost effective due to their low (administrative) fees. ETFs are associated with little effort and relatively little risk.

On the other hand, if you want to try to beat the average returns of the market, you can invest in an (actively managed) fund. This is a basket of selected investments and is actively managed by a fund manager. Depending on which investments are bundled in the respective investment fund, it is referred to as equity funds, mixed funds, real estate funds, etc.

How to invest money wisely for beginners?

If you prefer to choose your own stocks and bonds yourself, it makes sense to invest in individual stocks. However, one must be careful to spread the risk of securities from several different companies in order to minimize it.

For speculators who are willing to take higher risks and play with their luck more intensively, leverage products such as derivatives, certificates or options may be interesting. However, according to some studies, over 90% of traders destroy their money in the first 3 years. Therefore, you should be very busy with the trading strategies and test them in demo accounts before speculating with real money.

However, there are also good and above all profitable investment opportunities outside the stock market: for example, real assets such as real estate or new forms of investment such as crowdinvesting in real estate or startups. In the following, however, we want to focus on the stock market products.

Today we took a look to “Stock market how to invest” subject. For more finans article stay connected to web site. Good luck!

Stock market how to invest online and wisely? This article deals with the basics of investing in the stock market. What the stock market is?

Leave a Reply