Investing in the stock exchange is no longer – there are times – a beast of seven heads. Anyone who is committed to learning the basics can do this… And the results can be exceptional: profit. But how do you do that with little money?
If you are a beginner in the financial market, stay calm because it is very easy to understand. To assist you in this mission of knowing a little more about this way of making money, we have separated some important topics.
Check out some simple tips to start an operation on the stock exchange. Know what myths are, what is important to consider and what is worth taking into account.
Everything is listed in a didactic way – read it carefully and see B3 (EX-BOVESPA) with other eyes.
1 – Financial Planning
Some changes of thought (and habit) are important for a person to become an investor. Believe me: Investing money in the stock exchange is not a matter of luck.
Do you have a hard time making a financial budget at home, noting expenses and revenues? If so, you’d better start figuring out how the money works.
It’s easy, O: You always have to spend less money than you earn. If your monthly income is a minimum wage, you should use a way to consume something less than 800 reais per month. That’s how it works.
And if you think that the money is too short, make decisions: lower expenses or give a way to increase income. And period.
Well, seeing that, and having enough money every month… Then yes, you must return your thoughts to the financial market, especially in the variable income, which is where the stock exchange is.
2 – Know what is and how inflation works
In the years 2,000 the gasoline cost 1 real the liter, today the value is 4 times greater. What does that mean? That there was inflation in the period.
And inflation serves several purposes in the financial market. Let’s give a simple example: if you save in your house 100 reais every month, then at the end of 1 year will have 1200 reais. OK?
But after 12 months, with inflation these real 1200 will not be the same real 1200 today, do you understand that?
Well, let’s make it a little easier: you go to a store and watch a TV for 1500 reais.
Then you decide to collect money to get to that amount. At the end of the year, however, when back in the store, discovers the TV is being sold for 1700 reais – that is, more expensive.
This increase is due, almost always, to the inflation of the period – which makes the price of practically everything rise.
In financial investments, it’s worth the same idea. And that is why it is considerable – because it yields interest and, in some cases, accompanies inflation.
For example, the options that are specified in this monitoring of inflation… Soon, if you invest in it you are making sure that your money will not devalue in the time of application.
3 – The financial objective
All the people who invest money in the stock exchange have financial goals – they can be to make money and have a better life or simply have a more comfortable retirement in the future.
The important thing is not the goal itself, but to have one! That gives you focus… Let your goal truly be traced. So have goals.
There is a huge list of goals that can be created: change cars, buy a house, make an international trip, make an exchange, plan the birth of the child, have a millionaire retirement, go around the world, live income…
Among other options.
4 – Consider the debts
One of your financial goals may be to settle the debts… This is important because a debt makes the exact inverse effect of investments: it makes you lose money since you pay interest.
Do you understand that it’s no use for you to get interest on one side and pay interest on another?
So there’s not a rule that says you can’t invest money being that you have a debt in the market. But, the recommendation is not to have debts (not to lose money) and invest (to make money). Beauty?
5 – The importance of financial investment
The way to invest has the focus of making you receive interest – that is, making money.
So you save money and invest money – that’s the way.
Why is so important to invest money? Because we’re talking about the power of compound interest. Do you remember we said the financial market is not a gamble? So you won’t have to be rooting if you know what you’re doing.
When we talk about compound interest, we are talking about the following: 100 reais joined for 1 year, gives 1200 reais of accumulated assets. But if they were invested, in some application, it could yield a little more than that… And the estate would be bigger.
It’s simple to understand: when you invest 100 reais, there is a yield (interest paid) on that amount. When you just save money (and leave it at home, for example) nothing yields it. And you can lose purchasing power (inflation).
Well, generally speaking, a financial application pays interest… This has to do with making money because you’re not selling anything (not even your service), but you’re doing a good for the market: lending money to spin that “Ferris wheel”.
6 – Meet the stock market
The stock exchange is a market that exposes the sale and purchase of shares – which are parts of a company – where the investor becomes a partner. Okay, buddy… That definition you (and all the cheerleaders of Flamingo) already know, but go beyond.
Knowing only the definition will not guarantee you good financial returns, you have to understand how this market, which is so specific, works.
Oh, you’ve heard the phrase “buy Downtown and sell high”, don’t you? But is that really it? Don’t you have a little prank? Is it worth buying any action downtown? How do I know she’s going to get a discharge?
For these questions, only one answer: knowledge.
And there are several options for courses and books to find this wisdom. Right here on the Blog we have a totally free course that teaches in a few minutes’ important factors – for example: how to invest in stocks without taking risks?
This is one of the topics… Take the course right now!
Workshop 100% Online and free: Zero risk in investments
In addition, there are content of famous people for having succeeded with the investments: T. Harv Eker, Robert T. Kiyosaki, Thomas J. Stanley… among others.
7 – Investing in the stock exchange is not risky
From this knowledge, it is possible to demitigate a great market information, created by those who do not know much of it – investing money in stocks does not need to be risky if you know what you are doing.
The variable income seems to be risky because it has many people involved – advisors, analysts, consultants, managers, “inquisitors”, professionals… And besides, there is the incessant use of various jargons.
The question of risk is due to the fact that some people make wrong choices.
Oh, look… If you have 1000 reais, would you invest everything in a single company? You don’t even need to know much about the market to understand that this isn’t a clever move, is it?
Here, we can cite what experts call diversifying investments – which is nothing more than minimizing risks.
If the scholarship is made up of several companies from various sectors… The way is to divide your entire investment percentage into this modality. Electric power, malls, public agencies, aviation… Each sector has its periods of “fat or lean cows”.
You need to know a little about each of them… Obviously!
Anyway, as the famous billionaire and investor Warren Buffet says – “Risco comes from you not knowing what you’re doing.”
8 – Have coolness to put into practice
The stock exchange is one of the ways to apply money that can most generate positive results (money) for investors… Only these numbers can also be negative: with damage.
And, many researches prove: the greatest losses have to do with the lack of emotional control of people. You know that “stomach” thing? So this is totally necessary for those who will invest in the stock Exchange.
If you keep buying and selling then, then buy again and tomorrow will sell… The same action… Be aware that this is not a good recommendation – unless you are a professional in this market (Trader).
This emotional control is especially important for those who invest in the long term – a loss of a day or a month does not mean that you will not win tomorrow. The ideal is to know which company to buy – because even with the oscillations, it will make you profit!
9 – Choose a good broker of securities
Securities brokers are required for those who want to invest in the stock market.
Within the options, there are several and there yes, the investor can apply alone.
One of the balconies is to choose a broker in the right way, which has to do with low cost rates and high profitability.
Take into account customer service and features as well.
Check out some ways to invest in the stock exchange
Before entering the stock exchange or if you already have the habit of investing in the stock Exchange, know that there are other options besides the direct purchase, check!
Direct purchase of shares
It is where the investor himself chooses the shares he will buy, so that the gains or losses are not divided with anyone. It’s an investment that can generate dividends.
Index Fund (ETFs)
Exchange Traded Funds (ETF) Seek return as indexes. It is indicated for those who do not have much money to invest in the stock exchange, as they are minimum values of 200 reais, for example. It is widely used to diversify investments.
They are people who unite to invest in the stock exchange and the gains/losses are divided among the participants in a proportional manner. Typically, investment brokers have investment clubs to indicate to shareholders.
The investor can purchase quotas from a stock fund, which is most often managed by an independent broker or a bank.
10 – Before the stock exchange has fixed income, know!
If you are beginner in every financial market, it is not recommended to start on the variable income (stock Exchange) and rather on fixed income, which are more conservative products.
These less risky people have lower profitability, it’s true. But at the same time, it also has proportionately minor risks. Most of them are securities issued by banks and others are from the government, all have their own guarantees.
In short, when a person buys an asset from this modality, she is lending money to some financial institution (such as banks). In return, you receive interest.
In practice, the larger the borrowed money, the higher the profitability, the lower the cost rates and the more application time, the better the result for the investor.
Barnard M. Miller is a professional Digital Marketer. He loves to contribute content into different blogs to increase his writing portfolio and currently, he is working with a Custom leather jackets retailer that name is The Leather Makers.