Still afraid of equity investments? Demystify this type of investment and learn why and when to start buying and selling shares on the Stock Exchange with this handy guide!
Por Me Poupe!
If you’re still afraid of equity investments, you’ve come to the right place. Yes, I’m optimistic and I’m here to help those who are almost there on the shelves of stock brokerages! Some basic lessons will help to demystify this type of investment, guiding those who are now arriving in the world of stocks, and explain why investing is what there is, always taking into account the goals and objectives of each one.
And I’m not alone, Save Me! and Saver Me! I asked Professor Eduardo Mira, our specialist and muse of variable income, CNPI analyst, to explain to Tintin Tintin why and when to buy and sell shares. In a very simple way, he clarifies in this video that buying shares are nothing more than participating in a business, becoming a partner or partner in that business. And behold, a practical guide with basic lessons for investing in the stock market is born!
Lesson #1 – Seek profitable companies
To ensure that you have a good investment portfolio, seek out and buy shares in successful and profitable companies, as this is how you will receive part of that company’s profits.
Lesson #2 – Know that investing is different from speculating
Investing is one thing and trading is another. Those who buy shares just because they believe they will go up and buy them to sell later are not investing: they are trading. Anyone who invests buys shares thinking about building a good investment portfolio with profitable companies.
Lesson #3 – Open a brokerage account
If you want to be an investor or investor, open an account with at least three stockbrokers, to have access to various offers and purchases of shares, in addition to trading through Home Broker. Here in this post, there is a comparison between 5 stockbrokers, to help when choosing which ones according to your profile and goals.
Lesson #4 – Analyze the performance (net income) of companies
A fundamental practice for anyone entering the investment world, being always informed about companies is what gives security when deciding why, where, and when to buy or sell a stock. Some free sites help with this assessment, and here’s one to make it easier: Fundamentals, which provides graphics and results statements, based on a simple search with the name of the company you want to search for.
The most important information is net income, considering the performance of companies in the last five or ten years, in addition to dividends. If a company’s history is of profit growth and the dividends it pays, in these periods, usually those who invest in that company tend to keep their shares, without problems.
Golden Tip: If you have a solid company, with consistent and growing profits and dividends in your investment portfolio, you can keep it for years or decades, and you don’t have to worry about selling them. So, thinking that you’re going to lose everything on the stock market only makes sense for those who don’t read this post and make bad choices! In this other post here I show 3 ways to ensure a balanced investment portfolio.
Lesson #5 – Create Parameters
The best way to filter companies is to create parameters such as the dividend yield, which is a very simple metric calculated from a company’s share price divided by that company’s dividend (profit share) per year. Sites such as Fundamentals, mentioned above, show this data and in the video, Professor Mira shows us exactly where to find them, huh?!
And when to sell stocks?
When companies start to make losses, that is, when profits and dividends start to show constant declines. And how do you find out about this? Frequently following data from companies, the Stock Exchange, the economic scenario, market numbers, etc. It is also worth considering these parameters mentioned above.
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Some tools can help you outline your first steps and make some projections, such as online investment simulators, exclusive to Me Save! Anyone who wants to have ideas about investments, compound interest, and financial independence, among others, taking into account their own reality and interests, just access this link and fill in the requested information.