Learn how to invest in stocks in the stock market; while investing is always a risk, it is riskier if you do not know how to do it. Knowing how to buy leads to great income.
Invest in profitable stocks
The person, who invests in shares, is investing in companies, whether small or large. When buying shares, they give the investor part of the company’s property.
The value of the stock usually goes down or up depending on how much investors pay for an action. This makes them risky many times because their value can change, but they can also have great potential for growth.
Therefore, before buying in profitable stocks you have to know how to invest.
Steps to invest in stocks
If you have never acquired shares, before investing in any company you must know the steps or strategies to buy stocks:
- Open an account in a secure broker, a broker is a person or company that organizes transactions between a buyer and a seller. There are many types of brokers but it is best to use one as a good reputation.
- Planning investment strategies, the investor must be very clear when buying or selling. You have to think carefully: What asset to select? How much to invest? And what strategies to follow?
- Determine the amount of money that can be lost, requires the investor to manage well and establish how much money can be lost; distribute income well so that if a loss occurs that does not directly affect your living expenses.
- Invest less than 10% in a single operation; manage a low percentage of money at risk of losing. Invest in several companies so that the buyer has several options to win.
- Take advantage of the good news, if, for example, they give good news about a company the most logical thing is that it raises its shares, therefore it is necessary to take advantage of them.
- Setting limits, putting limits on your profits is not crazy, on the contrary, it is prudent. Because in these businesses the ambition can take control when you have a good run and lead the investor to squander the money you have saved.
When to invest in profitable stocks?
The most prudent thing is to buy shares when the market, in general, is economical and sell them when it is expensive. To know this it is necessary to know the stock index which indicates the low or rise of the shares.
How to choose actions that are profitable?
To know in what action to invest, several factors must be taken into consideration, which helps to estimate the future value that the action will take, among this:
Knowing which were the most profitable actions so far helps to know if the previous estimations have been correct or not.
At the same time, this information can be used as a basis for future estimates. In other words, if these actions will continue to be profitable in 2019 or will change their destiny, and which are the factors that are going to affect the changes in their values.
To cite a case, in the United States stock market, different trends have been registered according to each stock index. For example, within the NYSE index, shares that have grown were those of companies: Johnson & Johnson, IBM, and AT & T. Within the NASDAQ index, the ones that have grown the most were: Amazon, Microsoft, Qualcomm Incorporated and Comcast Corp.
What stocks to buy?
To start, it is good to invest in any action that makes up the IBEX35 is an excellent choice to start. Among the actions are Repsol, Banco Santander, Endesa, OHL, Mapfre, among others.
These suggestions are relative since the market is constantly changing, but if the investor buys in the aforementioned shares it will not take many risks.
Some important final recommendations
- The beginner should not take any risks so he should not meddle in the “leverage” as it is a generator of economic insecurities.
- Each time the investor enters the stock market it is recommended that you have a stop loss order (emergency order to stop losses).
- The main thing is that the person who invests in the stock market carries out its operations, without letting him be carried away by third parties.
- Never open operations that are not well known as it could bring negative results to the investor.