Welcome back dear loyal readers of Invest In The Stock, we are always very satisfied and happy with the affection you give us on a daily basis, as well as being more and more present and numerous. In today’s article, we’re going to see how to invest in the stock market.
Through our complete guide we will try to give you useful advice for investing in the stock market today.
Invest in the stock market
Let’s now begin to see what the stock exchange is and how to start investing in the stock market.
In practice, it is a regulated financial market where you can buy and sell shares, bonds, funds as well as various types of currencies and assets.
Regulated financial market
Regulated means an official market where securities, issuers, trades and insiders are subject to particular specific requirements.
These markets are managed by bodies in charge of supervising everything that happens inside them.
Borsa Italiana SpA and CONSOB (National Commission for Companies and the Stock Exchange) supervise the Italian stock exchange.
What is the Stock Exchange?
The stock exchange appears as a secondary financial market where the trading of financial instruments that are already present on the market (which have been issued and subscribed by investors) take place.
Until recently, trading took place physically inside the stock exchange headquarters.
Instead, since the 1990s, this trading system has changed, becoming completely electronic.
Investing in the stock market online
If you decide to invest in the stock market online, you will be able to make purchase and sale proposals for shares, bonds and derivative products.
Because on the one hand, we find those who want to buy securities or shares; on the other hand, there are those who want to sell their own, obviously looking for a profit and have different expectations:
Those who buy, hope and bet that the securities in question can increase in value
Those who give in expect it to remain stable or decrease
These exchanges, perfect for investing on the stock market starting from scratch, take place when the price of a sale proposal coincides with that of a purchase proposal, through the quotation of the shares in real time.
In addition to the value in the negotiation, the volume of the security that you decide to trade must also be considered, so let’s talk about its quantity.
Useful tips for investing in the stock market
Now let’s see how the stock market works and what the fluctuation of securities depends on.
Basically, it obeys economic laws, even if it is influenced by several factors, for example:
- The issuer
- The relevant sector
- The country in which it operates
- As well as considering global market trends
We also know that it is not easy to navigate among all this information, filter the true ones from the false ones and try to make precise and well-founded predictions.
For this reason, investing in the stock market and earning money by investing through shares, bonds and funds is by no means something to be taken lightly, because the risk associated with each investment must be budgeted for.
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To reduce this, we recommend diversifying the stocks within your portfolio.
Basics for investing in the stock market
When deciding to invest in the stock market for beginners, it is always better to contact qualified intermediaries such as banks, stock brokerage companies or financial advisors.
On the other hand, there is the possibility of getting advice from licensed professionals.
Stock broker
In this case, opt for promoters or financial advisors, also called brokers to invest in the stock market, who will follow you step by step, giving you valuable suggestions.
We advise against listening to the opinion of friends or relatives to invest in the stock market and earn money; since it usually doesn’t turn out to be a good idea, also because there is the possibility that you are types of investors with different profiles and characteristics.
Online trading
The wisest choice to sell and buy shares or securities on the stock exchange is to rely on the opportunities that derive from online trading.
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In fact, especially in recent years, investing in the stock market online through apps for investing in the stock market and specific and dedicated platforms is extremely simple, intuitive and fast.
However, we would like to underline that the functioning of the stock markets and generally of the financial sector remains a very complex issue.
Investing in stock trading online
Let’s go now to see how to invest in the stock market online safely.
First, you need to know how to open an account with a broker, or with a trusted bank.
Therefore, this is possible through the online trading service.
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Stock market investing broker
But who are the brokers to invest in the stock market?
Put simply, these are large companies, monitored, followed and regulated by the bodies in charge that supervise their work at a European level, and obviously as regards our territory.
In addition to this, brokers to invest in the stock market have all the necessary authorizations.
Among other things, they are therefore enabled to operate, because they guarantee minimum standards of transparency and solvency to give customers a fair and secure service.
Furthermore, brokers act as intermediaries and provide the tools to invest small sums on the stock exchange and earn, usually on shares or CFDs, through trading platforms and using financial market analysis tools.
Online trading platforms
The best known and most quoted trading platforms offer the possibility of opening a demo trading account, with which to practice and personally evaluate the platform and all the services of which it is composed.
So as to test for yourself what it means to invest in the stock market today, before using real money.
To date, practically all online trading platforms have a demo account, they do not require any deposit to use them and there is no obligation to switch to the real account.
This is very important because to enter this economic sector, it still takes study and practice to avoid making wrong investments.
Regulated brokers
There are several reliable and regulated brokers in Europe and operating in Italy, which allow you to invest in shares and CFDs.
Some of them are very popular and are the first choice for many investors.
You’ve probably heard of many of these before, names like:
- eToro
- Plus500 (79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money). Plus500CY Ltd authorized & regulated by CySEC (#250/14).
- Capex
To give a few examples, they are very valid online trading platforms that allow you to start investing in the online stock market with fairly low entry figures.
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As we said previously, they also offer the possibility of practicing using a demo trading account, to avoid nasty surprises.
For this reason, dear loyal readers of Invest in The Stock, we always recommend relying on industry experts with proven experience and reliability, so that you can invest in the stock market in a serene way.
Invest In The Stock, The Editorial Staff
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