If we like to speculate, we have money that we do not need at the moment, and we want to invest, perhaps buying shares is a good option. But we must know that we must arm ourselves with patience and not wait to earn money immediately .
We must be cautious, and buy stocks that do not entail too many risks, whose companies have predictable movements in the stock market, that maintain stability in the financial market. Shares of large companies (those known as those of IBEX 35), both Spanish and foreign, are always the best option to avoid risking.
There are well-known Spanish and foreign companies depending on the sector they are in, which will be our best option to start moving on the Stock Market. The first thing we have to know is how to buy shares or sell them, for this we will need a broker to do it for us.
There are companies that operate in the stock market through the Internet, in a totally professional way, but if we are starting, the most sensible thing is to go to our bank. All we have to do is open an account to operate in the Stock Market, a stock account and we will operate through our bank.
It is comfortable, it is safe and although it is more expensive than doing it on our own (let's not forget that banks charge commissions for everything, even if we are their best customers) for an apprentice of this complex world, it is undoubtedly the most appropriate and easier to start.
How much money should we invest
For starters, investing for example between 1000 and 2000 euros , and even less, is more than good. When buying shares we must know that, for example, 1000 euros that we invest can make us lose, given the fluctuations of the Stock Market, about 100 euros, but everything is starting, and we are not going to lose beyond that amount .
That said, the more money we have to dedicate ourselves to learning on the Stock Market, the better, as long as it is money that we can truly invest in this, without being removed from other needs.
What shares can we buy
Those mentioned above, that is, the actions that make up the IBEX35, which we will have heard a thousand times, are the best choice for those who start. Solid companies that have been on the Stock Exchange for a long time are the best option to buy shares: Endesa, Repsol, Banco Santander, Mapfre, Movistar , and others that take less time but belong to first-rate technology sectors and have successfully gone public. precedents and whose stability and business success endorses them: Netflix, Amazon, Facebook ... the important thing is to be safe and keep in mind that we do not want to lose a lot of money and, if possible, earn it if we know how to wait to sell the shares that we have bought.
If our intention, when testing, is not to have the shares for a long time (just a few weeks), the best thing to do is to see if the market, in general, is rising, and which are the companies that do it the most in the park: real estate , technology, pharmaceuticals.
How to buy shares: how much can you earn
It is obvious that when we have dedicated part of our money to buy shares, what we earn depends exclusively on us. However, we will earn a lot during the first six months . Buying shares requires patience, and the market does not move overnight, it takes time, so in the first months, and as a whole, it will not be won, we will have to wait for it to happen, so Less than one year, counted from January 1 to December 31, so that companies that move within the IBEX35 experience significant movements that make or lose money.
The beginners who have followed all these indications have bought from the mentioned companies and have invested, also the mentioned amounts, they can be content if they earn around 8% throughout the year, and keep it over time, year after year.
How to buy stocks: more things to consider
Throughout our learning, which must be slow and establishing reasonable deadlines, we will learn more difficult concepts that require more knowledge. Words like stop loss, hybrids, warrant, and a long etcetera, will be familiar to us throughout our learning. But the most important thing, when we start, is to put our money in the hands of a broker, if it is from our usual bank, better, and take the minimum risk in purchases to avoid losing money.
And remember, you have to arm yourself with patience and not wait for profits to rise like the foam the month after our purchase, or maybe yes. But investing and buying stocks is an exercise that requires patience and, to see the real results, the most advisable thing is that we should wait, at least a year . This will be a more than reasonable period of time in our first contact with this world.
Buying stocks is something that everyone should do if they want to monetize their savings and not let them die in a bank account.
However, there are many ways to buy shares and not all of them are valid for everyone.
If you are looking for the fastest and easiest ways to start investing in shares of companies around the world (Amazon, Apple, Netflix, Shopify, Volkswagen, Booking ...) the best options are these that we show you below.
Why online and not directly at your bank? Simple, the convenience of doing it from home, in a matter of seconds and with low commissions , plays a fundamental role when it comes to acquiring shares in a company.
You can make decisions from your home chair, in front of the computer and at the right time, without having to go to the bank or speak to your advisor.
Another fundamental advantage is the commissions they charge you to go to your bank to buy shares in companies both in the IBEX and in America or abroad (in these specific cases, the commissions are very high!).
To buy stocks, the first thing you have to have is access to the stock market.
For this you can do it through your traditional bank or by opening an account in an online bank .
Your own bank with which you work regularly may allow you to open a securities account and operate with it, but if you do not want to pay large commissions for it, we recommend that you use one of the online platforms that we have mentioned in the table. Above, in addition to their low fees, they have a number of advantages that a traditional bank cannot offer you.
First of all, note that the majority of online brokers with whom we like to trade usually work with derivatives or CFDs. CFDs are a leveraged product that allow you, for example, to buy a greater number of shares with less money, in such a way that you leverage on the purchase and with € 1,000 for example you can be buying shares for the value of € 2,000 for example (This would be 1: 200 leverage). If for example you leverage 1: 400, you would be buying shares worth € 4,000, putting only € 1,000 at stake. Be careful, what this does is that you can earn more money with the increases but also lose it with the decreases, if you have bought shares.
In the last paragraph we say "if you have bought shares", because another advantage of CFDs is that you can also earn money when the price of a certain company drops in price . In this case, what you would do would be to sell shares of said company without having them. The more they drop in price the more money you will earn. Imagine you buy Tesla shares worth $ 300. If they drop to $ 250 you would be earning $ 50 per share by the time you close your trade.
In this guide I will explain how to invest in stocks , and give you practical advice that you can use right away. Start getting to know “La Bolsa” today!
I think the topic will interest you: I have a degree in finance, I work in this field and I will tell you the same things that I would say to a friend who wants to start investing in stocks.
In particular I must tell you that we will see:
- Briefly what stocks are and how the stock market works
- How to choose which shares to buy
- What are the parameters that characterize the best actions?
- The characteristics of the worst actions to stay away
- How to learn to invest in the stock market
- How to invest in stocks
Owning the shares gives you the right to participate in the company's operating and financial results, as well as the right to own a portion of the company's assets.
How the Stock Market Works
The stock market is divided into "Primary Stock Market" and "Secondary Stock Market" and this allows a diversified form of investment .
Primary Market
The newly issued securities are placed in the "Primary Stock Market", here we will find:
- New bond issues (such as BOT or BTP)
- New share issues
- IPO (initial public offering), that is, the first offer to the public of shares belonging to companies that have just been listed on the market.
Secondary market
The Secondary Stock Market is the one that interests us the most because it is the one in which the sale of shares takes place .
Within the secondary market, anyone can buy shares of any company that is listed in the different international markets.
To understand how the stock market works , leave us an example:
- I decide to sell 100 Apple shares for € 200 each.
- He believes that Apple's shares are worth more, so he sniffs the deal and decides to buy my 100 shares for € 200 a share.
- In this way, the sale and purchase orders (which are anonymous) of all investors are compared, and since our orders coincide, the exchange is carried out.
What stocks to buy? How to choose them?
Now I will give you my personal opinion on what are the stocks to buy and how to choose the best stocks when you make an investment with a medium-long time horizon.
First of all, I want to give you good news: the fundamental characteristic for a good investment in the stock market is common sense.
First of all, remember what you are buying when you buy stock - you are buying stock in a company you consider valid.
You will become a member of the company in all respects, including a low percentage of the company's total outstanding shares on the market.
Therefore, if you invest in Amazon stock , you will not be able to sit on Bezos' right on Amazon's board of directors, but you will share the fate of your company
If you don't know anything about biotechnology, how can you determine if the patents of a company like Bayer are valid compared to those of the competition?
On the other hand, if you know about video games, movies, or technology and a new Netflix series or next-gen Nvidia video card is about to come out, you might consider buying its stock.
Think about what your skills or passions are and specialize in that field.
The market always looks to the future
The market is prospective, that is, it always looks to the future.
In fact, all official or verified announcements regarding future events will be immediately considered by the market.
For example, if Apple announces a very innovative new iPhone model, price movements will be immediate and will not wait for the actual launch of the smartphone.
In fact, when this new smartphone is actually available to the public, the price will not budge in light of the new product launch.
It is obvious that if the public particularly appreciates the new phone and sales soar, the stellar results will be reported in the next report and the price will advance again, but the move will be generated by the cash produced, not the news from the phone.