Investing in the stock market is a topic completely unknown to anyone. Our knowledge prefers not to touch inhospitable terrains such as finance and values. But to avoid fear and get a little deeper into the stock market world, we offer 5 useful tips for you to learn to invest in it without fear.
1. Saving is necessary to invest
If you really want to invest like a professional, you should also know that this world is prosperous for those who know how to save. You could place your savings in a compound interest service and multiply your earnings.
2. Be realistic with expectations
«The historical performance of the stock market is over 10% including dividends (without considering inflation)», says expert Sergio Yuste Teruel, financial advisor to the European Financial Planning Association. Seek to be prudent to avoid disappointment about the outcome of your investment.
3. Say no to Trading
If you have been seduced by trading, you could try just with a minimum amount of your portfolio and thus you could not spend your total capital. Trading is well known for causing losses in 95% of cases. Keep that in mind!
4. Ignore those who guess
Fortune tellers are basically the encouragement of those who know little about investments. They are those who usually mention you as the market is going without any reliable evidence. It is best to ignore them.
5. Prepare for the worst moments
The market can vary significantly and this can cause great losses when one expects, perhaps, a good result. Unfortunately, that usually happens. As these moments happen you will be better prepared, as you will sharpen your investment plan. Take the bad experiences and avoid making those same mistakes in the new investments you make.