How do you invest in the Stock Market Guide and basic information. Tips

Although investing in the Stock Market can seem daunting for many entrepreneurs and may be difficult, we’ll show you how to invest and make money in this market.

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This article was translated from our Spanish edition using AI technologies. This process may cause errors.

Opinions expressed by Entrepreneur contributors are their own.

Ever thought of the possibilities for investing in Stock Market? But you imagined it as a market only open to high-ranking executives or renowned brokerage houses. Anyone with money, a bit of time and the ability to invest can take part.

What you have to keep in mind is that it is about your money, your wealth, so it is essential that you consult an expert, go to an advisor and study very well what a Stock Exchange is about . Before starting any process, you must know the elements that compose it, its operation, the laws that regulate it (in Mexico it is the National Banking and Securities Commission (CNBV) and the community that makes it up.

Companies can also invest in the Stock Market when they require capital for their expansion and growth plans. You can obtain this money by selling shares or by giving a portion of your company to investors. This will make the company the property of many investors, giving them both political and economic control.

It is this way that it can become a marketplace for the purchase and sale of shares in companies of all sizes and types. Any entrepreneur can invest in Stock Markets if they have a small capital. This can be a great way to raise capital.

Stocks should be considered as long-term and medium term investments. You can always sell the stock at any time, however, the market liquidity will determine the value. You could make less than what you put in.

We share basic steps for beginners in this area:

  1. Make your investment plan and set profitability goals . With this you will know how much you can invest in the Stock Market and for what term.
  2. Plan your wealth management strategy and determine how much will be put in the Stock Market. This can vary from 10% to 100% depending on the investor.
  3. Learn about the profiles of investors. What type would you choose to be if you were going to invest? A passive investor is one that has less risk but spends more time managing the portfolio. An active investor, on the other hand, can have a higher risk profile and invest in currencies or stocks. They have advisors that can help you make informed decisions about your investments, from banks and brokerage houses to point out the potential risks as well as the most efficient ways to do it.
  4. Identify your investment goals. What are you looking to do with the Stock Market? This will help you to avoid taking rash decisions and will allow you to know when to pull out.
  5. It is recommended that you choose an investment fund to purchase debt instruments. Check out the past returns for these types of funds.
  6. Find out the commissions you’ll have to pay depending on the channel that you invest through. These include sales, purchase and administration. You can lose a lot of earnings due to commissions.
  7. Discuss with your advisor how you are doing. Make the necessary changes to get the right direction.
  8. You advisor should be able to answer all of your questions promptly and clearly. They can also help you build investment portfolios with equity funds or stocks, depending on your risk tolerance, investment goals, financial status, and financial objectives.
  9. Only invests with financial intermediaries duly authorized and under the supervision of the National Banking and Securities Commission.
  10. You should invest in the Stock Market with an entrepreneurial mindset. Imagine a great company that you want to own and contribute to its success. It isn’t a simple task to invest in the Stock Market. You must make equity-based decisions.
  11. Only invest your excess
    You should not invest money you won’t use for six months in the Stock Market. This is your surplus savings.
  12. Stocks are a great long-term investment. You will have the opportunity to open the company of your dreams, or retire.
  13. Be careful about your investment terms. Stock market volatility is normal. Do not panic if you experience losses in the near term. It is likely that your investment will recover at the end.

We will also give you some recommendations to help you increase your success with this kind of investment.

  1. Basic and technical analysis
    Review all investment guides you find. Many investment manuals can be found online.
  2. Practice and simulating
    Experimenting is the best way to learn. You can learn without putting your money at risk by using investment simulators. Visit web portals like Accigame de Banamex where you can virtually invest and practice your knowledge.
  3. Learn about political and economic events
    It is important to keep an eye on the news media and other specialized publications that cover all markets which have an impact on the investments you make. You will be able to make informed decisions by doing this.
  4. Don’t be led by forums
    Keep in mind that there are many opinions in these media, both good and bad. Be sure to stick with the method you’ve learned, and follow more objective data.
  5. Don’t increase your risks
    The Stock Market can be very appealing, but you should not invest more than your own money. Remember that no one can guarantee a Stock Market performance.
  6. Read the contract carefully
    Learn about your obligations and the brokerage house.

On the contrary, there are a number of myths you need to forget when you decide to invest in stock markets. We find these myths:

  1. It is not a matter luck that you will win on the stock exchange. You need to do an analysis and work with an advisor in order to create an investment portfolio that suits your needs.
  2. Expertise is required. All brokerage houses and mutual funds have teams who meet regularly to analyse the financial market. In making financial decisions, you are not the only one.
  3. You must take your money out when there’s a crisis. While stocks may fall in times of financial stress, they are likely to recover in the long-term.
  4. It is better to invest in gold than in other investments. The market price will determine the value of your investment. This means that it may be possible to sell it for a higher price than what you paid.

If you want to invest in Stock Markets, don’t forget to keep your money in order, to manage your finances and to not lose sight of your goals.

Publited Sat, 4 Sep 2021 at 20:14.34 +0000

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