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How to invest in the stock market: beginner’s guide

invest in the stock market,

You have put a little money aside and now want to invest this profitably? There are many ways to do this. One of them is investing in stocks/equities. How to invest in the stock market, we explain in our beginner’s guide.

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Savings don’t earn enough interest any more

Everyone knows how it worked in the past: you saved a little money and put it on your savings book. It’s safe there and there’s even a few more interest on top of it. Unfortunately, this idea is no longer relevant today. The savings are safe, but it does not multiply in times of low interest rates.

 As a result, the situation is similar with current and current accounts. There, too, the interest rate is so low that even over a longer period of time, nothing really comes together. If you want to increase your money, you should rethink and find out about other ways to invest savings profitably.

How to invest in the stock market

Would you like to invest and multiply your saved money ? Then you should invest. There are many possibilities here. For example, you can buy gold or invest in stocks and thus participate in the stock market game. Even if this sounds like a brainspin at first, it is not impossible. After all, anyone can invest money, no matter what budget they have at their disposal. Of course, you should inform yourself in advance about the different variants and filter out which investment is right for you. 

Simply buying shares so spontaneously and going to the stock exchange is, of course, not advisable. So it is very likely that you will invest far too much money in the wrong stocks. Unfortunately, you do not increase your money with this, but you may lose it. Instead, let a stockbroker advise you in peace. 

It provides you with an investment strategy, knows the stock market and the stock market and can therefore also provide stock recommendations with regard to current share prices. There are also stocks for beginners where you start trading with little money without taking too much risk.

Investing in securities

As an investment, securities are very popular internationally. However, this does not necessarily have to be action. Investments are also welcome in other forms. These include, for example, bonds, funds, Pfandbriefe and even certificates. Each variant has its own advantages and disadvantages in the stock market game. In order to filter out the best investment for you, we have taken a closer look at a selection of the different types of securities:

Structured securities: For structured securities, the amount of interest depends on events such as growth rates. Current share prices can also play a role here and influence the interest rate.

Bonds

Bonds are a good way for companies to get debt.This is not the sale of company shares. Instead, a repayment entitlement and an appropriate interest rate are fixed. The investor therefore does not act as a shareholder, but merely as a creditor. However, the respective interest payments may vary considerably. For example, there are fixed-income bonds or structured securities.

Shares

Those who invest in shares become co-owners of a public limited company and receive a certificate – a so-called share certificate – after the purchase. As a shareholder at the general meetings of the respective company, you are entitled to claim your voting rights. You will also receive a dividend if a distribution has been decided. 

The question “How do I buy a stock” now arises for you? Then it is best to seek advice from a stockbroker. It shows you how to invest a stock deposit and can make a stock purchase recommendation. He knows what matters to novice stocks and how long you should hold the respective securities before selling them again.

Equity

If you want to take as little risk as possible with your investment, a stock fund is a good option. In the case of a fund, investments are not made in a single share. Instead, it acts as a collection of various bonds, shares or even real estate. 

This risk diversification reduces the likelihood that the investor will lose all of his savings in the event of price fluctuations.However, a special equity fund invests less in real estate or different types of securities, but mainly accumulates shares. However, risk diversification is, of course, also a special feature of the fund.

If you want to be on the safe side, you are very well advised with a stock fund.

Participating in stock trading and taking a step on the German stock exchange is therefore not as complicated as is usually expected at the beginning. There are also stocks for beginners, which a good stockbroker recommends. He won’t dictate which shares to buy. This decision is still up to you. After all, it is your investment. 

However, stock tips from a professional can be of high value if you are looking for a good dividend yield.The stockbroker can name you stocks with potential and also suggest when you should sell the shares in order to make a profit from them. Just give it a try. Stock trading can really be learned by anyone. You too!