Stock market investments are made with the aim of making a profit for the investor. Profits are perceived in two ways: either by receiving income through dividends or through capital gains. In other words, an investor who decides to buy shares in a company may receive the profits earned from the company through dividend income or make a profit by reselling a security through the increase in its price on the stock market. It is important to know, however, that an investment is exposed to the risk of capital losses and, as such, it must be thought out strategically and over the long term in order to make money from it. How to invest well in the stock market?
Get enough information about the investment area
As with any investment, investing on the stock market can lead to risks of losses that may be more or less significant depending on the investment made. It is therefore advisable to invest an amount that does not impact on the investor’s daily life and standard of living. Investing all his money would be the mistake not to make on the stock market. An individual investor can turn to an approved professional such as Francois Marland to be assisted and advised in his investments. Before committing to a stock market investment, it is also imperative to be sufficiently informed about the stock markets, products (stocks, bonds, derivatives) and economic and financial news in order to be able to carry out the related analyses and determine the best time to buy and sell the securities selected in the portfolio. Also find out about the issuer’s financial statements: monthly or annual figures… Obtained through a public communication to which the issuer is obliged. Quoted values are more accurate for a regulated market than for a non-regulated market. To increase your knowledge of the investment area, research by reading physical or online books.
Define a stock market investment strategy
An investor must be able to identify his profile and then determine a suitable investment strategy. The most advisable methodology would be to put forward a profit threshold to be reached with a floor for losses. In the same batch, set a time limit for the investment commonly known as the “investment horizon”. The idea being to be able to analyse a proportionality between return and risk, and to focus your choice of stock market portfolio in this direction. In the investment strategy for investing in the stock market, aim for long-term equities. The performance of equities depends on your investment horizon. An investment horizon that is too short will involve taking greater risks because of the pressure of having to and wanting to achieve gains very quickly. Investing is done calmly and patiently, taking into account the intrinsic values of the company, possibly the evolution of the products and services on offer and the results in the case of buying shares of a company.
Diversification, a good investment strategy
Third strategic point: investment for different portfolios, different economic sectors in order to minimize the risk of loss. This option also offers greater opportunities to make gains. This portfolio diversification will be done according to the investor’s risk profile. Francois Marland offers his expertise and advice for any investment following the example of investment professionals. Given the wide variations in the stock market, it may be prudent to use this type of service and be able to seriously monitor your portfolio. In the event that the minimum loss threshold set by the investor is reached, it is important to maintain control of your investments by putting an end to the stocks that are the cause of the loss. Finally, decide astutely where to invest on the stock market in order to secure your investment. This choice can manifest itself by choosing a brand with a high reputation. Quality stocks mean stocks that ensure better profitability and quality shares, the guarantee of profitability over a long period of time.