Investing in the stock market is now much easier thanks to the Internet: you only need a computer with connection to start making your first online transaction.
It is not like before when they talked about investing in the stock market, we imagined those brokers in a Wall Street building with the phone, buying and selling shares, hurrying and shouting their sales.
Even in previous years, only wealthy people or those who had a large amount of money saved, were those who invested in the stock market. It was considered expensive and complex.
However, now anyone can do it with some money.
The stock market is the stock market where different types of assets are bought and sold, such as stocks, ETFs (mutual funds), bonds, etc.
If you buy a stock from a company, which is equivalent to a certain part of that company, it means that you now own that small part of the business and if it increases in value, the price of the stock you bought will go up.
You can sell this action to recover the investment and earn money, or you can keep it to see if the price goes up and receive part of the profits of the company that corresponds to you.
In the online market you can not only invest in shares of different companies: you can also do so in currencies, cryptocurrencies, commodities and more. Each asset has its own conditions and benefits.
But you need a broker to carry out the negotiations you want. Before the brokers were those brokers who charged large commissions for the purchase and sale of shares.
Now, for the online stock market, we have platforms that give you all the tools to invest and perform the operations you want without the need of an intermediary to keep part of your earnings.
These online brokers have opened a world of possibilities. You can invest from a computer or a mobile phone with Internet, monitor your operations and generate profits with a few clicks.
But the most important thing is to have the necessary knowledge to analyze the market and make good investment decisions. And if this is your first entry into this world, this may be confusing to you.
So here I will teach you everything you need to know to invest in the online stock market for the first time: from what you need to learn, how to invest step by step, to what are the best brokers to start your operations.
(How to learn to invest your money)
Learning to invest your money in the stock market is not so different from learning other disciplines. All learning requires theory and practice. But the most important part, without a doubt, is the practice. Currently, investing in the stock market is easy. The most complicated thing is to generate profits with your investment.
The most common mistake that many people make when they want to learn to invest is to start doing it with their real money, without really knowing what they are doing.
It is difficult to learn to invest in this way, each mistake will cost you money and if we want to invest it is to earn money. However, no one has become a successful investor without having made many mistakes along the way.
The first thing is to educate you. Whatever investment platform you use, you will have to learn how it works, what each option and tool is for, how to operate, etc.
Now most brokers include a section to learn from scratch. My recommendation is that you see the video tutorials as they are more explanatory and dynamic than any text.
The best way to learn to invest is to develop your skills where your mistakes do not generate large losses: in a demo account.
Brokers like IQ Option or eToro give you the possibility to create a free demo account to practice everything you want with virtual money. In this way you will learn firsthand how to operate in an investment platform.
In this demo account you can test all the knowledge you acquire.
Take a few days to practice in the demo account, develop your own strategy and learn to feel comfortable with the investments.
Write down all those strategies that work for you and generate profitability, invest in different actions, learn to manage risk correctly to avoid losses.
When you see that you already know how to generate profits in your demo account, you will be ready!
(The 5 best pages to invest in the stock market)
From the broker's website you can take the first step to invest in the stock market. Start trading is simple, the difficult thing is to find the ideal broker for you and generate profits.
There is something in common that all reliable brokers have: they are regulated. They have the backing of an important financial institution.
The fact that they are regulated means that there is a place where we can go in case of having a problem. When a broker is regulated it is because all their transactions are transparent and audited.
If a broker is not regulated, you do not have the security of what they are really doing with your money. That is, they could tell you that they got lost in a fake operation or become a victim of fraud.
Therefore, here I share the most reliable and safe brokers that I use to invest in online stock market, leaving you some details so you can investigate more about each one:
IQ Option
It is one of the most popular brokers because it allows you to start investing with only $ 10.
You can trade in more than 472 shares of companies such as Apple or Microsoft, as well as operate with cryptocurrencies such as Bitcoin or Ethereum, and currency pairs such as the dollar / euro.
Click here to see a full analysis of IQ Option.
Etoro
Etoro is a broker that has become well known for making social trading possible.
- Risk alert: 65% of retail investor accounts lose money when operating CFDs with this provider. That's why you should consider if you can afford the high risk of losing your money.
What is social trading? It is a form of social network (like Facebook) of the trading, only that here instead of sharing the publications of your friends, the traders share their investment strategies.
That way, even if you do not have any knowledge about the stock market, you will only have to copy the strategies of other successful investors to make a profit.
Empireoption
He is a serious and reliable broker of Latin origin. They are regulated by the laws of the Commercial Code, and are transparent and safe in their operations.
From $ 200 you can trade CFDs in various assets. Ideal if you are from Latin America.
Here you can also copy other investors as they give you the possibility to copy the best users so you can earn money without much experience.
I have used it lately, and it has been giving me good results since from $ 50 you can open an account to earn money.
Binomo is similar to IQ Option in that it allows you to open an account from $ 10 and make $ 1 operations.
I recently wrote my opinions about Binomo and told him about my experience with this broker. It is a great option to start investing in the stock market.
(What do you need to buy shares?)
Nowadays you can buy shares of different companies in the online stock market with a computer or mobile phone with internet. You only need a good platform to operate and want to generate income.
If you had wanted to invest in stocks many years ago (before everyone has internet), you had to go to a stockbroker to do the operations for you.
Usually, this was done over the phone or you had to go to your office in person. The big disadvantage was that the commissions were very large, which made the investments not so profitable because you had to share a large part of your profits.
For that reason, it is that before only those who had a lot of capital could invest.
Now that it is possible to access brokers with a few clicks and make the investments in a simple way, you do not need much capital or distribute your profits with anyone else.
With an internet connection and a computer or mobile, you can buy and sell shares through a broker such as IQ Option, eToro, Empire Option, etc.
- Risk alert: your capital may be at risk. My readers are very important to me, and that's why I recommend you not spend the money you do not have.
Of course, you will also need some money. Regarding the amount needed to invest, it will depend on the minimum amount required by the broker or the price of the shares you wish to buy.
You can find brokers that request from $ 10 to others where you will need $ 100, $ 200 to more. However, keep in mind that the amount of money you earn will depend on your investment.
In short, now you only need a computer or mobile phone with internet, a trustworthy broker and some money to start buying stocks.
(How to invest in the stock market from home)
It is not like before. No longer do you have to call by phone to ask the broker to buy or sell shares, just open an account on the website of the broker of your choice and deposit the money you want to invest to operate and make money.
Most brokers also have their own app for your cell phone, making the process of creating your account and start trading even easier.
To start, you have to choose a broker.
Above I have already shared the 5 best pages to invest in the stock market that I use, but you will always have to read in detail all information related to your commissions and payment methods.
Once you are well informed and have made the decision to open your account, you can register for free to create your account.
Most brokers that I recommend have a free demo account that allows you to invest with virtual money.
If you already made your first deposit, make sure you are using the account you want (demo account or real account with real money) before investing to not take any surprises.
Usually, you will receive a username and password to enter the trading platform, in this platform you can see the available assets, their graphs, access trading tools, analyze the market, open and close trades, monitor your transactions, etc.
You should know that every operation in the stock market has commissions specified by your broker. There is a cost to invest and it is very likely that your bank or means to receive payments also charge a commission when receiving your funds.
All this you must find out and take into account when investing, as your earnings may be affected. In the same way, these commissions are not very high.
If you have any questions about its operation, I recommend you visit the help section of the broker's website or contact your customer support directly to receive first-hand help. Almost all brokers have a support team accessible at all times.
The basic thing is that you select the asset in which you wish to invest, be it an action, a currency, raw material, etc., and decide whether to buy or sell.
If you think that the asset will go up in price in a while, you buy. If you think your price will go down, you sell.
You decide how much to buy or sell and perform the operation. You can also select when to close the operation to minimize losses or collect profits automatically.
Having success in a few operations you will have generated a certain amount of money that will now be in trading account. It is enough to withdraw your funds to enjoy your winnings!
All this in a few clicks, it's that simple to invest in an online stock market.
(8 tips to invest in stock market)
1 Do not follow the majority
Our purchasing decisions are often influenced by the people around us, family members, friends, colleagues, mentors, etc. It is not so different when it comes to buying and selling shares when investing in the stock market.
If everyone is investing in a certain action, the tendency is for other investors to do the same. But this strategy can be counterproductive in the long term.
Successful investors like Warren Buffett have mentioned that their biggest gains have been obtained by "taking the opposite" to the tendencies of the majority.
It takes common sense and practice to develop this skill. Lean on the demo account!
2 ) Establish long-term goals
Ask yourself why you want to invest in the stock market. The goal is to earn money, but how much money do you want to earn and how much time? You must know what your purpose is.
Maybe you want to buy a house, a car, save for your retirement, pay for your children's university, etc. Having an objective in mind will make it easier to make investment decisions than buying and selling stocks with the hope of obtaining some profitability.
You will not start earning money overnight by investing in the stock market. You must keep this in mind. You should always think long term.
3 ) Use your own money
It is very important to invest that money that you can face losing. You should never invest borrowed money or all your savings. If you lend money to invest, you will not earn much as there are other factors to take into account such as the broker's interest and fees.
And not only that, if your actions fall, you will still owe that borrowed money and you will have to pay the interest.
If you really want to make money investing in the stock market, you have to use your own money. An amount that, if lost, will not affect your personal finances.
4 ) Diversify your investments
One of the most important tips is that you do not put all the eggs in one basket. If you invest all your capital in a single action and it falls, you will lose all your money. You must create a diversified portfolio that avoids it.
This way, if any of your investments falls, you will not lose all your money. This will also allow you to set different objectives for your investments.
Having a diversified portfolio with different assets in different markets is key to obtaining more profits and reducing the level of risk. The diversification will protect you from possible collapses in any sector.
5 ) Understands the basic principles
Before you start investing your money, you must educate yourself. Earnings per share, technical analysis, dividend return, etc. They can be confusing concepts for people who are not familiar with the stock market.
If the stock market seems confusing to you, do not invest yet. The brokers will not do the work for you or make you magically earn money.
You must be able to understand exactly how your money is being invested, but you are exposing yourself to being scammed by some bad broker.
Investigate and educate yourself constantly. There is a lot of information available on the internet that will help you understand how the stock exchange works.
6 ) Invest with regulated brokers
Due to the growing popularity of online stock investing, many brokers have appeared with attractive offers that guarantee you earn a lot of money. Those who usually offer quick and easy money are usually scams.
You should always make sure that the broker you choose to operate is regulated by an important financial entity. In this way, in case you have a problem, you can go to other instances to receive support.
A broker that is not regulated has no support from anyone and can make you lose all your money. Use one of the brokers that I recommended above.
7 ) Control your emotions
The biggest obstacle to generating profits by investing in the stock market is not being able to control your emotions. Fear and the desire to earn more can play against us.
When most investors are worried about a company, the price of their shares usually falls. On the other hand, when the majority is optimistic about the future of a company, the price of its shares tends to rise.
When the price of an action moves in the opposite direction to our expectations, we experience tension and insecurity. We wonder if we should sell or keep the stock, or buy more.
The best thing is to know how to control these emotions and have a logical thinking when investing, without ignoring your instinct.
8 ) Do not exaggerate your activity
Reviewing your actions a couple of times a month or each week is enough. However, it's hard not to be constantly looking at the board, especially when you first start.
This can cause us to perform unnecessary actions when the price is moved by short-term events. Every time an action experiences a sudden price movement, you should see what the reason is.
Rarely, these short-term events (such as changes in the board, temporary price fluctuations, etc.) are relevant to a company's long-term performance. The important thing is to keep calm and learn to deal with those inevitable highs and lows.
Investing in an online stock market can seem like a complex and risky world. However, it is only a matter of going a little deeper, practicing and learning every day.
All successful investors started in some way and it has already been proven that you do not need to have a master's degree in economics to operate in the stock market.
You can even copy other investors and learn with video tutorials.
The important thing is to learn and to experiment. You will not get rich in the short term, but you can generate good long-term profits.
Instead of having your money in the bank generating a 1% return every year, why not better generate 20% or more by learning about the financial market?
Investing in the stock market will be a practice that will become popular and it is better to adapt to this method of generating income.
And you, are you already investing in the online stock market? Leave me in the comments below your experience!
Edit: Rock
Source:https://gananci.com/invertir-en-bolsa-online/