It is likely that you have some savings and you are considering what to invest in that money you have standing there. Bank accounts hardly give any return, what’s more, many of them charge you if your balance exceeds a certain money limit.
Faced with this situation, many of us consider investing in the stock market to try to get a return on it, although there are people who are still not clear on how to do it.
If you want to learn how to invest in the stock marketthen we tell you how to do it.
How to invest in the stock market step by step
Investing in stock is easyalthough it is true there are some basic steps that you must follow before starting.
The first thing you should take into account without a doubt is to ensure the safety of your capital. In this way, you should always choose a safe and reliable partner (broker)that allows you to sleep peacefully knowing that your money will be safe with him.
Finding a broker that is regulated in your country (CNMV in Spain for example) is important.
So, this would be the first step to start with, but there are others.
- Choose a broker
- Check in
- Deposit money
- Choose which stock you are going to invest in
- Choose how many titles you are going to buy
1.Choose a broker
It is the first step of all and therefore the most important.
As we have already mentioned, It is very important as long as it is a regulated broker. Look for opinions on the chosen one on the internet before opening the account and make sure that it offers the options with which you want to work, since apart from the simple purchase and sale of shares there are many other options within a broker that may interest you. .
It is also important to take into account the commissions charged by the broker, since there are many differences between one and the other. Having a broker that charges few commissions will be very important to maximize your profits.
Once you have clear your broker, sign up and open an account on it. If it is a regulated broker, in all of them they will ask you for your name, surname and email, to later expand this personal information with a copy of your ID and even a photo of you holding the identity document that you have chosen. This is to make sure that it is you who opens the account and not someone else.
3.Make a deposit
Once you have your account open, it is time to make your first money income. In order to buy shares you will need to have cash in your broker account.
You must choose an income method from among all those offered by your broker, so it is important to check before choosing one to see if it offers the method that most interests you. Usual income methods are usually: bank transfer, debit or credit card, Paypal, Neteller… So you should choose the one that is most comfortable for you. Keep in mind that depending on the method you choose, your money will take more or less time to reach your account.
4.Choose the company in which you are going to invest
When you already have your money in your account, it is time to choose which stock you are going to invest in. It is important not to buy just after receiving the money, but to choose a good entry point for said action. You may be clear that you want to invest in Amazon, for example, but you should find an optimal point of purchase to have more options to earn money with your investment.
5.Choose how many titles you are going to buy
In this way, it is important to be clear about what percentage of your portfolio your investment in said action is going to suppose. Once again, if we go back to the Amazon example, each title from this company is listed at a relatively high price, so you will not be able to buy many titles at once. Depending on the capital by which your portfolio is made up, you must assess what percentage Amazon will assume in it and see how many titles you can buy.
Once you are clear about this, you can click on the “buy shares” button and become an investor.
What stocks can you invest in?
Today, the most famous companies in the world are listed on the stock exchange, so you can invest in practically any of them.
Some examples of companies in which you can invest are:
- Manzana: One of the most famous listed companies in the world and that has given more joy to its investors. The famous brand of the most famous mobile phone, the Iphone, is listed on the stock market and you can invest in it from practically any online broker.
- Microsoft: Continuing with technology, MSFT is another of the most invested companies by those who seek long-term profitability and do not want to complicate their lives too much. Its titles continue an upward growth year after year.
- Google (Alphabet): The matrix of Google, the most famous search engine in the world, is another of the most traded titles on the stock market. Like the other two companies, it is common to invest in them for the long term.
- airbnb: Changing sectors, this apartment and vacation home reservation company is one of the most negotiated in the sector along with others such as Booking.
- NVIDIA: The graphics card manufacturing company, among other things, is one of the most famous in the sector. Its shares are trading higher despite the correction it has suffered in recent months.
- IAG: As far as Spanish titles are concerned, IAG is one of the most followed companies, although it is true that the coronavirus and the conflicts that currently exist have greatly weighed down its price in recent months.
- BBVA or Santander: For those seeking exposure to banking, in Spain these two banks are the most followed by investors.
As you can see, many companies that you follow or consume on a daily basis are publicly traded and you can easily invest in them from home through a regulated broker. You just have to choose one and start investing.
George is Digismak’s reported cum editor with 13 years of experience in Journalism