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Six Steps To A Portfolio

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Stock market for beginners: how to become a capitalist

Do you have money but no idea about investing? No problem. It’s not that difficult to put together a solid portfolio of securities that delivers decent returns and is not too risky at the same time.

Don’t worry: you don’t need any previous knowledge. This is a beginner’s listing. You don’t have to be a number genius either. A dose of common sense and a touch of discipline is all it takes to become a good investor. Many have done this before you – and with our help you will too.

This is how stock market works for beginners

Some banks try to suggest that investors must constantly watch the markets and trade a lot in securities in order to be successful. This is – with all due respect – complete nonsense. Rather, it is like this: whoever trades a lot usually loses money, while the bank always wins. Because she earns from every securities deal that she mediates.

Successful investment is a quiet affair that takes little time. The portfolios that we propose to you hardly need any maintenance. It is enough if you take a look at it once a year and read just something if necessary. The often put forward protective claim that I have no time to invest is therefore not valid. Your greatest expenditure of time will be mastering this beginner stock market course, which is broken down into six steps.

Every beginner can go public in these six steps

Step 1 : Open a securities account. For beginners we recommend the direct bank deposit . -> Depot comparison

Step 2 : Think about how much risk you want and can take. A successful investment strategy only works if you can stick it out and don’t lose your nerve halfway through. -> Asset Allocation

Step 3 : Find out what diversification actually means. How to lower your risk and possibly even increase your return. -> diversification

Step 4 : Learn about selected asset classes like developed market stocks and emerging market bonds that you can use to build a robust portfolio of exchange-traded index funds (ETF). -> asset classes

Step 5 : Choose one of the suggested ETF portfolios or put together your own combination of different asset classes according to simple rules. -> ETF portfolio

Step 6 : Select the relevant ETF from our recommendation list and buy it. -> ETF recommendations

Now you are almost a stock market pro. You are at least as well informed as your investment advisor in the branch bank around the corner. You now reap the fat commissions that he would have taken from you.

If investing seems too strenuous and too complicated for you

Were you hoping that you could do the do-it-yourself investment quickly in two hours? Are you disappointed and frustrated at realizing that you need to invest more time? If so, we have more convenient (but also more expensive) alternatives for you:

Go to an independent fee advisor and have them put together an ETF portfolio. That costs money, but in the long run it is always cheaper than if you let a bank advisor push you into your custody account – supposedly free of charge – which are mostly of little use and may not even fit together sensibly.

You can also delegate the topic of financial investments to an asset manager. The classic administrators only serve customers with assets of 500,000 dollars or more. However, digital asset managers, so-called robo-advisors , are now offering their services on the Internet from entry sums of a few thousand dollars – mostly at affordable conditions. Once you have decided on a portfolio, you don’t have to worry about anything else. The digital administrator buys the corresponding securities and then manages the portfolio. However, you have to forego personal consultations in a dignified atmosphere with robo-advisors.

Avoid investment forums

And one more piece of good advice at the end of our long preface: Don’t get into the idea of ​​hanging around in any Facebook group on the subject of investing. The texts are nice and short there. But the half-truths and wisdom of the regulars that are spread there will not get you any further. They are more likely to add to your confusion and the risk that if you follow one of the many questionable pieces of advice you will be seriously wrong. Of course, everything that is posted in Facebook groups and other forums is not wrong. However, as a beginner in the stock market, you will find it difficult to distinguish the helpful from the harmful.

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