There is no guarantee of profit on the stock market. But there is an increased chance of success if a plan is followed carefully. Then everyone is given the opportunity to succeed – yes, you too.
But how to win in chess, if you do not know the rules of movement of figures?
Investors can make a fortune. Decision-making skills are important, and attention to detail is an ideal trait. However, the universal truth is that every investor, especially inexperienced one, is prone to mistakes… So, how to fix it and start your way to investing in the right way, with the least possible risk?
The world’s largest investor, Warren Buffett, once said: “The best investment you can make is in your skills. Invest in yourself.”
It is very important to know what you are doing, to have the right knowledge. Investing in stocks is not based on luck, but on facts and figures. And so, you need to be able to notice the possibilities.
We present to you the following steps, as we noticed them on the FREEDOM24 platform. This is a platform that you can use to learn about all financial things, get ideas for investing in certain stocks searched and suggested by experienced traders, as well as to learn how to invest in other financial instruments such as ETF, BITO and IPO.
📢 By the way, you can get your first free stock if you register today with this link! YES, completely free, you don’t have to pay anything! And you can win a TESLA promotion worth up to $ 1,100.
Well, let’s get back to the topic. Here are 5 steps a novice investor should take to start with less risk and less stress:
Step #1: Don’t put all your eggs in one basket!
It is important to limit the risk in your investments… Because here we are talking about your hard-earned money! Therefore, you should have an appropriate distribution of funds in many sectors and in different companies, and not just in one specific company.
For example, let’s say you take all your money and distribute it equally in 4 different sectors:
- Technology
- Real estates
- Banking
- Energy.
If there is a financial/banking global crisis, it will only affect your investments, not your entire portfolio. So that’s how you minimized the risk.
Step # 2: Invest in the future.
Innovative companies such as Tesla, NIO, or even metaverses now, are the ones that usually bring the highest return to investors. This is because enthusiasm for something new is creating a trend in the markets.
The mass purchase of shares of innovative companies is the reason why the share price is rising, and therefore the ability to recognize such companies should be developed. Reading news and financial websites helps a lot to that end. You can also find such companies on the Freedom24 platform, in their sector of ideas.
Step # 3: Invest in the long run.
Patience is one of the most important weapons an investor should have.
You need to know that the increase in your capital will be slow, but also steady over time. A long game always wins. We cannot conquer the market, but if we follow it, the market will always grow.
Step #4: Do extensive research.
Before making any investment, it is very important to know exactly what product you are buying.
In the case of stocks, you need to know exactly what the company you are investing in is doing; its future plans, financial data, and its margin of development.
Step # 5: Invest in yourself.
Whatever strategy you want to follow, you should first gain knowledge of exactly what you need to do before making any investment. So – invest in yourself before you embark on this magical journey!
The risk of losing capital is high and if you do not understand how the investment works, then it is better to avoid it or consult a professional. For example, Freedom24 has a great support team that is there to answer any questions you have.
But before that, once again, dare and ask for your free supplies today! Keep them in your portfolio until you are sure of your next steps, but demand it today – while the offer is still valid.
