Here's how you can invest in the stock market by following a few steps that will help you achieve your goals within the financial market
Investing in the stock market has become a reality for more and more Brazilians. Whether they do it right or wrong, the fact is that the number of investors has grown a lot in recent years, mainly due to the ease with which they can make their investments.
However, despite the ease, some of these same people have already realised that making investments without prior knowledge can lead to bad or unprofitable choices, and all of this can make a person give up on the stock market.
To be a good investor, you don't need to be an expert on the subject, but you do need to understand how the stock market works and how to consciously invest your money for good financial returns.
One of the best investment strategies is to define your objective, as well as what you're going to do if something unforeseen or volatile happens. Trading on the stock exchange can be risky for those who don't have their strategies well defined and enough knowledge to avoid falling into traps.
Here are some steps you can take to map out the best financial strategy to become a successful investor, with a good financial return and extensive knowledge of the stock exchange and the stock market.
How to invest in the stock market
Step 1 - Outline your objectives! Why am I going to start investing?
It's very easy to make that decision. But keeping it alive and constant is the most challenging part. So the first step we define is: What is your why? Have a clear idea of why you're going to invest.
It sounds simple and cliché, but having written down what your objectives are on the stock exchange makes it much clearer to set your goals and achieve your investment objectives.
Your goals can be short, medium or long term. Be clear and define what they are before venturing into the capital market; "I want to earn more money, "I want to make money work for me", "I want to guarantee a retirement", "I want to go on a dream trip in many years' time"; there are many reasons why you have made this decision.
Defining these objectives will be crucial in determining the amount you allocate to investments.
So the most important step, whether in the world of investments or even in other areas of your life, is to define your why!
So, what's your reason?
Step 2 - Determine your budget! How much can I invest each month?
Goals set. Objectives defined. And now, how much to invest each month? It seems easy to answer this question, but when you're starting out in the world of investments, a mix of feelings comes to the surface; it's a mix of anxiety, nervousness, enthusiasm, happiness, sadness, fear; all of which can influence the decision you make.
There's no set rule. Only you can answer that question. You can allocate a percentage of your monthly earnings to variable income without it affecting your responsibilities and quality of life. It could be 10, 15, 20% or even more.
We recommend that you have a monthly spreadsheet to fully manage and control your obligations. Be careful when determining this amount, because as the name implies, variable income varies, and investing in the stock market also requires caution.
Step 3 - Identify your profile! What is my investor profile?
Conservative, Moderate or Aggressive. These are the profiles of investors who are currently trading on the stock exchange. Before I go into a little more detail about each of them, it's worth pointing out that in order to start any kind of investment through a stockbroker, it is mandatory that they carry out a process known as Suitability, which means that through a questionnaire, they can identify your investor profile and tailor their financial products to you. In this way, they can see what your objectives are, your financial condition and even your level of knowledge.
Let's understand a little about how each profile works:
- Conservative: is the investor who doesn't tolerate risk and prioritises investments with liquidity (a financial term that corresponds to the ease and speed with which a financial asset can be converted back into cash).
- Moderate: They are willing to take a little more risk, allocating part of their capital to financial products that offer a certain level of risk.
- Aggressive: They are tolerant of risk because they know that the financial return on a successful operation may be greater than the possibility of loss. They are tolerant of the risk of losing part of their capital at some point.
It's important to emphasise that this profile can vary according to your current life situation. Today you may be conservative, but in a few years' time, with practice and experience, you'll become an aggressive investor.
Step 4 - Study the most varied types of investment! Where to start studying?
Incredibly, this can be the most challenging step. Access to information is so great these days that it's hard not to get lost in the flood of content. That's why, once you've clearly defined all your objectives and your investor profile, start studying the financial product that most appeals to you. That way, you avoid getting lost in the maze of information. Take your time. Study a little bit every day. We've put together some tips to help you get started:
- Choose the product that matches your investor profile;
- Study free content on the internet;
- Watch videos by professionals and experts. Choose the two you like best and follow them online via social networks and YouTube channels;
- Chat to friends who like the same subject as you;
- If you want to intensify your studies and broaden your topics, buy a course from a professional you identify with.
Step 5 - Choose one of the brokers available on the market! Which broker to use?
The Stockbrokers are financial institutions authorised to place all orders for the purchase and sale of financial products through B3, the Brazilian stock exchange. Because they are institutions specialising only in investments, brokerage houses have experienced significant growth in recent years as a result of the growing wave of new investors.
They offer the most varied financial products, from fixed income for conservative investors, to variable income, such as shares, property funds, options, among others.
It's worth noting that many brokers today have adopted the R$0.00 brokerage fee, meaning that all your buy and sell orders will be exempt from a fee that used to be charged.
Here are some of them brokers so you can research and get to know each one a little better:
– Rico
You may be interested:
