You can make investing as difficult as you want. Of course, you can immediately invest in complicated (and riskier) products like futures, turbos, and CDCs. But you can also start simpler. If you are at the beginning of your life as an investor, we have a few tips for you: By the way, you visit this site
Only invest with money you don’t need right away
Just like in real life, your investment may turn out differently than you thought. You may need your money next month or a year from now to buy a new washing machine or go on vacation. If you invest all your reserves, you run the risk of having to do the laundry by hand or camp in your own garden from now on.
Invest for the long term
Since you can always have setbacks, you must have time to make up for them. The shorter the term, the smaller the chance that this will work. This means that if your investment horizon is quite short, you should only be limited in stocks. If you look further ahead, you can also put a larger portion of your money in riskier investments, such as stocks.
Spread your investments
If you put all your money in just one investment, then you are very dependent on the ups and downs of it. You may indeed have just got hold of that one great stock that outperforms all the others. But even if you have done your research well, something can always happen that you could not have foreseen. For example, the Volkswagen cheating diesel scandal, or a technological invention that turns the market upside down (such as the iPhone), or legislation that changes. And that can have a huge impact on the price of your investment. Just look at what Volkswagen n ‘s share price did after the unveiling of sjoemelgate.
Pay close attention to the costs you incur
Every time you buy or sell it costs money. You cannot invest those euros and you miss all those years that you invest the return on those euros that you could not invest. The costs per bank or ‘broker’ can sometimes differ considerably, keep that in mind. In addition to purchasing and selling costs, you also have to deal with custody fees. The average return on equities was 5 percent between 1900 and 2014. If you then pay 1 percent more costs at one bank than at the other (every year), that adds up considerably.
Only invest your money in what you understand
Warren Buffett, one of the richest people in the world, is a big proponent of this. He avoided tech stocks for a long time. This initially cost him returns, but when the internet bubble burst in 2000, it worked in his favor. Buffett understands what Coca-Cola does, he bought shares in the group for $1 billion in 1988. This has not done him any harm, as this graph shows.
Don’t trust anyone’s blue eyes
If you’re approached with a fantastic investment proposal that seems too good to be true, it often is. For example, the supervisory authority for the Financial Markets (AFM) regularly warns against dubious sellers.
Invest a certain amount each month
“I don’t know if now is the ultimate time to start investing in stocks”, says Corné van Zeijl of Actiam, “but if you invest some money every month in an investment fund, it doesn’t matter much”. “Start now, then you have immediately taken the most important step. Undoubtedly there will be a correction and then you wonder why you started, but if you put money into the stock market every month, then you buy at lower prices. race,” says Van Zeijl. Finally, remember that past returns are no guarantee for the future.