At the beginning of the year, stock exchange prices collapsed worldwide. For several months, the Corona crisis caused severe fluctuations on the markets. In the second quarter of 2020, prices began to recover and stabilize. During this time, private investors in particular increasingly traded on the stock exchange, because after the crash, there was a good opportunity to get in cheaply and earn money from the new upward trend. The trend of investing money on the stock market continues .
Trading in securities and the like is particularly popular among younger people. Benjamin Bilski, founder and managing director of the social trading investor database platform NAGA, shares this view : “Millions of people use their smartphones every day . The ability to trade via a device represents the ideal gateway into the world of profitable stock market trading for our target groups.” However, anyone who wants to be successful on the stock market in the long term should familiarize themselves with the subject matter before getting started so that mistakes and financial losses can be limited.
Keep an eye on costs and fees
Branch banks often charge an annual fee for maintaining a securities account. When buying securities from banks, there is also often a commission that depends on the order volume. All of these costs and fees reduce the return. If you want to trade on the stock this disconnection hinders the seamless flow exchange particularly cheaply, or even completely for free, you should look at so-called neobrokers. These are usually apps that provide their users with the easiest possible access to the stock exchange.
Since neobrokers finance their business by placing orders with over-the-counter trading venues, they
can offer their customers securities trading at particularly low prices. Neobrokers, with their mobile
availability, are following the trend that banking transactions are increasingly taking place online , so
that you always have an overview of your transactions and can react quickly to changes.
Acquire knowledge and follow experts
Anyone who trades on the stock market without a plan asb directory or knowledge often loses their
money faster than they earn it. If you are interested in a company’s shares, you should look at its
business figures and press reports. Only when you can get a clear picture can you estimate whether
the company will be successful in the future and whether an investment is worthwhile.
The Internet is full of information and stock market news.
You can read along and exchange ideas with other investors in online forums. Some stock market
experts have blogs where they share their investment strategies and sometimes even disclose their portfolios to show how they achieve long-term success.
The exchange of such strategies and information is also called “social trading”.
Some neobroker apps even have an integrated social trading function. In the Naga app , for example, users can copy the portfolios of other successful users one-to-one and add them to their own portfolio. Benjamin Bilski says: “Our goal is to give young traders the opportunity to get to know each other and share expertise. On top of that, users have the opportunity to copy top stock traders and their trades.”
This allows them to imitate the successful strategies of others. Newcomers in particular, who have little experience on the stock market, benefit from the knowledge of experienced users and can potentially convert this into financial success.
Never put all your money on one stock and check offers carefully
Even if the stock of a single company looks very promising, you should never invest all your money in just that one stock . It is better to spread your money across different securities or stock market products. This is called diversification. This spreads the risk and avoids a total loss.
You should be cautious if you are offered a particularly lucrative product that promises a high return with very little risk. Often, this is a scam where only the seller benefits at the expense of the investor. If you are unsure, you should get a second opinion and find out more about the product yourself.
