How do I train myself to invest

My first share: basic knowledge for prospective shareholders

Who can become a shareholder and how much money do you need?

Anyone can become a partner (shareholder) in a stock corporation and trade securities. Prerequisites for this are available money and basic knowledge of the stock market. The following rule of thumb is often used by securities consultants to secure their own financial security and to determine the amount that one wants to invest in shares: One third of the money actually available is invested in the short term (e.g. in the savings book so that it can be withdrawn quickly and easily in an emergency) . Another third is invested in fixed-income bonds, for example. The remaining third is free capital for the purchase of shares. This somewhat riskier money brings - as many analyzes have shown - the greatest profit in the long term.

The basis of every investment decision is always a personal conversation with a securities advisor. The investor's financial situation, personal risk tolerance and risk tolerance are discussed. On this basis it is then decided how much and in which shares and other securities to invest.

It should be noted that small amounts are often not suitable for buying shares because of the bank charges. Stocks only become profitable after the fees payable on purchase are earned. Investors should therefore study the costs carefully in advance when choosing their online broker.

Which stocks are the right ones?

There is no basic rule for this: “You don't ring the bell to get in.” This means that each shareholder ultimately has to decide for himself when and where to “get in”, that is, to buy something. There is no such thing as the “hot tip”!

The greatest profit is to be found when buying at the lowest price and selling again at the highest. The perfect timing is seldom achieved. Before investing too quickly, it is better to invest a little more time in gathering information. Stocks are a long-term investment and before making this long-term commitment, all sources of information should be used.

Numerous analysis methods, such as fundamental analysis and chart analysis, try to bundle market and price influencing as well as technical factors into one statement and give a clue for a promising investment decision. A consultation with a securities specialist at the bank is particularly important.

There are different risk classes for stocks

The shares of large companies - called “blue chips” in the language of the stock exchange - usually promise a higher level of security and a relatively steady, but not necessarily extraordinarily dynamic, increase in value. Investors take a high risk in companies that have a short history and have climbed meteoric. Here it will only become clear in the future whether these companies are crisis-proof even in difficult times and whether their business ideas can ensure lasting success.