How Buy Shares
Investing in shares is one of the classic forms of investment.
In order to be active on the trading floor can, however it requires some preparations.
1. Creating a stock portfolio
First, a potential investor needs a securities account. This can be opened either with a bank or one of the numerous online brokers. In this deposit the shares purchased are held and managed.
2. Define investment objective
Below the target of equity investment should be clearly defined.
How much money is available for the equity investment available?
How much risk the investor is willing to take?
What yield hopes of investors from its Investment in the securities market?
Answering these questions affect the choice of stock investments. Investing in growth sectors can be extremely lucrative for example, promising high returns, is on the other side, however, also associated with a higher risk of loss. By contrast, could be the long-term investing in the highest values of the main indices mean relatively safe investing, however, is often associated with a lower rate of return. Highly recommended is, relatively broad set up his stock portfolio and not to place undue made subject to certain companies or sectors. So can be compensated or at least curbed any losses possibly.
3. collect information
To make an investment decision, you should first gather information about the company, in which you may want to invest. The source here is in addition to the information portals of the company itself and the news search on our financial portal. Moreover, you can get here on the detail pages information on the development of the stock over various periods as well as any additional information and indicators for this investment.
Another source of information used buy and sell recommendations from renowned analysts. finanzen.net published in analysts' ratings section on a daily basis to numerous listed companies.
4. Test Strategies
Before the actual investment decision to test the own investment strategy is recommended. Model portfolio are for the ideal instrument. investors can experiment with a wide variety of market strategies without use real money. In addition, additional watch lists provide the opportunity to observe values without directly add the model portfolio.
5. Buy shares
If the investor has made its investment decision and opted for a particular stock, the securities can now be purchased. For one shares with the bank or broker, which and how many shares are to be acquired. The important thing is whether the securities are to be bought immediately at the current price, or whether a particular price is determined, from which the items are to be ordered. If the desired stock is unavailable to the desired price within the specified period, the purchase order is, however, not executed.
6. Observe
Although stocks are usually thought of as a long-term investment, the depot should be checked from time to time. In addition, you should keep on the latest developments on the securities market to date. An overview of the current trading day get investors as trading day with our newsletter finanzen.net-Daily.
As a shareholder, the investor becomes a partner of a company. In addition to the gains that can be realized by the shares held, a shareholder benefits in other ways from its investment. The company generates a profit, a part of which may be paid as a dividend to the shareholder. The amount of the payment amount may vary depending upon the number of Shares held.
8. Contain losses
The goal of a stock investment is to make a profit in the long term. This also means to dispose of unprofitable investments, if they do not meet the return requirements of the investor. The share sale is similar to how the purchase of shares. The investor shares with his bank or broker, by whom and by how many share certificates, he wants to separate. It is important to establish here whether the shares are to be immediately sold at the current price, to wait for the best price or if the papers are to be sold only if they fall below a pre-fixed price level.
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