The stock market isn’t just for experts .And it doesn’t require technical knowledge or a huge amount of money. In fact, just a few dozen minutes will be enough to make a successful stock market investment.
Furthermore, investing in the stock market is a winning bet in the long term … provided you follow a few important recommendations.
In this tutorial, I’ve summarized everything you need to know to get started in the stock market! But before getting into the details, I’ll give you an overview with the 5 main steps to follow in the stock market.
The 5 main steps to investing in the stock market
To invest in the stock market, you’ll first need to choose a tax wrapper. This is the type of account that will hold your investments. In France, there are several types, each with its own specific tax regime. To get started, we recommend the PEA (Share-Investment Plan) and life insurance, but securities accounts and PERs are also worth considering.
Be patient and stay calm!
We’re here to help: If you’re new to the stock market, be careful not to rush into things. To help you, we’ve created a 7-day action plan. Get it for free by email here!
Before you start: what you need to know to invest in the stock market
Contrary to what you might think, it is not at all necessary to spend hours behind a screen full of flashing graphs and figures to invest in the stock market;
In addition, the stock market has many advantages over other investments, such as real estate: a few hundred euros are enough to get started and you can withdraw your money whenever you want!
Understanding what an action is
Stocks are the most popular financial securities among individual investors. A stock is simply a piece of ownership representing a fraction of a company. If you buy a Microsoft share, you become the owner of a small portion of the company, just like thousands of other shareholders.
When you invest in the stock market, you invest in companies that innovate and create wealth. You then earn money in two ways:
You realize a potential capital gain when reselling your securities.
An analogy can be drawn here with real estate investing , which allows you to earn rent (the equivalent of dividends) and potentially realize a capital gain. With stocks, capital gains are generally the most significant factor in earnings, as a growing company will often reinvest its profits into its business to continue growing. This explains why a company like Amazon hasn’t paid dividends for years and has still been an excellent stock market investment.