I have some money saved and I want to invest in the stock market, how can I do it?

Good training and prudence are the keys to investing in the stock market without endangering your economy. We tell you what you need to start in this world.

The current economic situation encourages people to manage and look for ways to both earn money and save. At present there are many savers who wonder what they can do so that the money they have managed to collect with effort and time bear fruit.

One of the most interesting options to do so is to invest in the stock market . The question that most of us ask ourselves is the following: is it an option for all audiences? Here we tell you what you need to know to enter this peculiar world without regretting it.

What is needed to invest in the stock market?

If you have come this far, it may be because you have ever considered investing in the stock market but you have not just seen it clearly due to the risk involved . Or you may have already done it but without much success. In any case, if you decide to get involved in this adventure, you must follow a series of steps without skipping any.

• Training . The first thing you need to invest in the stock market is training, training and training. If it seems expensive to you, ignorance can be more so. Also let yourself be advised by your stock market advisor.
• Simulation . Start making decisions or let yourself be advised but without actually carrying out the operation. Write down the option you would have taken and a year later see how it would have gone.
• Valuation . In the event that it had gone wrong, go back to step 1, the formation. On the contrary, if it has gone well, compare yourself with the market average; If you don’t pass it, go back to step 1.
• Money . Record all your monthly expenses (water, insurance, Internet, taxes) and assess how much you can reserve to invest in the stock market. If you do not have experience start with a small budget, which should never be more than 10% of your money.
• Professional . Choose a good stockbroker as he is the authorized professional to buy and sell securities on the stock market.
• Profitability _ When choosing the securities or shares that you want to buy, be clear that, in general, profitability and risk are directly proportional. The more risk you take, the greater the potential return. While if the risk is lower, this will be the potential profitability that you will obtain.

How to invest little money and generate profits?

We all seek financial stability but with the added concern of whether we will be right if we decide to invest. In this sense you have several options at your fingertips apart from the bag. We recommend that before “moving the file” you consult your advisor with all your doubts.

• A good way to generate profits with your money is to deposit it in a savings account . It is a safe investment and you can withdraw it in an emergency, although you would lose the yield by not leaving it until the date on which the deposit is one year old.
• The term deposit is a form of investment in which you “lend” your money to the bank for a stipulated time, receiving interest payments in return. Although it is more profitable than savings, it requires a minimum initial amount and cannot be withdrawn before 6 months.
• Bills of exchange are a form of savings where the sum of money invested can be withdrawn on a specific date and whose returns depend on the market to which the value is associated. They are more profitable than the previous ones but the initial amount is also higher.
• The financial market undergoes many oscillations, so to generate profits it is advisable to diversify and not invest the money in a single investment. If you do so, you could suffer losses or even lose everything.

What precautions should be taken when investing?

Investing your money can be profitable but it carries its risks so it is important that you take a series of precautions before doing so.

• Never invest more than 10% of your money , also reserving an amount for contingencies. In some investments, withdrawing the money prematurely means losing interest, which means that all the effort made falls on deaf ears.
• Without training it is not an investment but a lottery. Take your time to do it, it will be worth it!
• Ignore rumors and trust reliable sources . Also seek good tax advice.
• Always do it through a solvent platform , even if it charges more commissions, making sure beforehand that it has a good and proven reputation.