How to invest my money in the stock market

The stock exchange is a complex organization that attracts investment from companies, individuals and the public sector. I, as a private person, am interested in knowing how to invest my money in the stock market and get the most benefit possible. The first thing you should do is open an account with a broker (intermediary between the stock market and you) and analyze the financial product, the market and the amount you want to invest, because do not forget that in the stock market you risk losing your investment or part her. From .com we will explain the different possibilities so that you can start profiting from your savings with the stock market.

Types of financial products

Commonly, people know the stock exchange through the stock market, where millions of them are traded every day. Companies divide their capital into securities (shares) so that you can trade with them by becoming a partner in the company. But not only the stock market is nourished, we can also speculate with options, futures, derivatives and commodities . These are products that in some cases require technical knowledge and it is advisable to inform your broker before investing with them.

You should know that in the stock market you can earn both when it goes up and when it goes down, which offers possibilities in all market cycles.

Types of markets

In this section we seek to know where to invest, if it is better in a particular company or in the index of a country; Yes in currencies or commodities (raw materials). To invest in companies, it is useful to analyze their financial statements to determine the company's financial situation. The indices, such as the IBEX 35, are made up of the most important companies in the country and it is convenient to carry out a macro analysis of the economic situation of the country and companies (fundamental analysis) and accompany them if you have knowledge of a technical analysis (study of the graphs) . For currencies and primary goods the same.

Risk and quantity

The risk tends to be higher for short-term investments, since in long periods trends tend to be smoothed and market noise eliminated. The risk will depend on what you want to risk and the possible profitability you want to obtain. We advise having a diversified portfolio (not correlated) so that it is difficult for all or many of your investments to go wrong. In terms of quantity, we always advise only to speculate with savings, that is, never with the money you use on a daily basis to live.