How initiate in the world of the Stock exchange?

Invest in Stock Exchange is participate in the securities purchase and sale, such as stock of public limited companies, public bonds and private, and a broad instruments variety of investment, in order to obtain profits.

It can seem something complicated for someone that it does not have financial knowledge, but really is within reach of anyone. Of course, before giving the first steps, is fundamental know some basic principles on its operation, in addition to be clued up of its security, return, liquidity and flexibility that, broadly speaking, are above the investment in other assets, as the properties or the art.

How you can achieve profits in Stock exchange? One of the ways is buy stock of a company and sell them when they go up of price; another is via the dividends or, which is the same thing, the profits that they distribute the companies between its shareholders.

The Liquidity is one of the major advantages of the investment in the stock market. If need have your money, can sell your stock in an instantaneous way, and you can sell just the amount that need, maintaining the rest.

Risks of the equities

The investment in Stock exchange supposes assume risks, since it is invest in equities subjected to a tall volatility, that is, to a major oscillation with an upward trend and with a downward trend of the contribution. But is precisely that risk which it allows obtaining one great return that that which offer other financial products. Thanks to the compound interest, if are accumulated gains over time, is possible to obtain major profits. But also are been able to suffer major losses.

Common sense and diversification

Although the Stock exchange can be a very profitable investment, it is necessary to use the common sense e invest with criterion. Is impossible to know in good time which is going to be certain stock' yield nor if they are going to turn to an investor in millionaire or take him to the ruin. As a rule of thumb, is always owed consider that a last return does not guarantee future returns.

That is why is recommendable to be cautious and, especially in the case of the investing novice, invest small amounts in Stock exchange, to go increasing the figures gradually, custom-made in which allow it the financial knowledge and the economy staff. In addition, is fundamental to invest just the money that it is not going to need short-term.

A good trick to avoid lose money is put on a figure limit before investing or of selling some stock.

The diversification is essential when invest in Stock exchange, in order to be able to equilibrate possible losses with the gains. Is fundamental to diversify so much in products, as in instalments, sectors, type of companies or geographical areas.

To choose in what products invest can use a fund comparison tool that you will help to choose at all times which more interests you, of comfortable and sure way. You will be able to consult, and compare, at any time the yield of each product, its evolution, the fees that you will have pay... It does not be necessary have a major assets to diversify the investment, can invest a small part of your savings in the Spanish Stock exchange, and other small amounts in that one of Japan or THE USA, for example.

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