So, where can you start if there is not much money, however, you want to have an account with the bank, and that interest drip from it? Unfortunately, banks now do not indulge in interest rates of customers, and you won’t save up a lot there. Not only that, savings can eat up inflation or the devaluation of the ruble. What way out?
You can try yourself in investments
They will help not only save money, but also increase capital, and significantly. How to start investing in stocks to a newcomer? Oddly enough, it is necessary to start not with the purchase of shares, but completely with other actions.
Here’s what seasoned investors advise:
1. You need to determine where your money is useless and aimlessly going.
2. Find a way to increase your constant income.
What will that give? Money that used to be spent on nonsense can be let on investments. Additional income can also be used to replenish an investment account.
At once we will state that this occupation is not for the lazy, because even accounting for their own income is rather low and time-consuming. Not to mention the need to somehow motivate yourself to seek additional sources of income. So if laziness is your best friend, it is better to forget about how to invest in stocks to a newcomer.
But if you want in 5-6 years to have a steady income from your investment portfolio — that’s where you want to start.
Especially since there are a lot of different applications to account for expenses now. However, you can use a regular table in excel and keep records of expenses in the way you are comfortable. After the month you need to look at what expenses you can get rid of, and at the beginning of the month defer this amount. This will be the first installment for investment. And you’ll have an incentive to increase it.
By the way, you can start investing with any amount — at least three thousand. Just the smaller the starting amount, the less the income. However, every month by replenishing the investment account, it is possible to reach the amount necessary to generate decent income.
So, you have some amount of money. Now what?
How to start investing in stocks to a newcomer?
Now you need to choose a broker. It is a platform that will be for you to buy shares on the exchange, because it will not be done directly.
Following the advice of the investment guru, the broker needs to choose a large and reliable one. Such a broker will have your funds safe. In Russia, the largest brokers consider “FINAM”, “BKS”, “Sberbank”, “OPENING”, “TINKOF”. There are others from which to choose. The main condition is that your chosen broker has a state license. Otherwise you can get on the financial pyramid and sooner or later lose all your investments.
After you have chosen a brokerage platform, you need to open a brokerage account on it, transfer money to it, and then choose the shares of the companies in which you want to invest your money. Through the platform buy shares (often it is done through a special app), keep an eye on the rise in their prices and get dividends.
All information about the value of shares and the size of dividends can be found from your broker. Typically, there is round-the-clock support on the site where managers answer any questions.
Once you buy the shares of several companies, you have a so-called “investment portfolio” forming. And you right on the site will be able to keep track of how it fills with incoming dividends. There are also downs, of course, however this is another topic.
By the way, there are two ways of obtaining profit from shares: independent portfolio management and support of broker. Here the choice is yours. Carefully study all the conditions, ask the broker about the risks and decide how you will be engaged in investing – yourself or with the help of a broker.