Investing in shares – the right way to do it. 10 tips for getting started with shares


Many people are considering investing their money in shares. Quite rightly – especially in times of low interest rates and inflation. However, you should inform yourself well before getting started. 10 tips on how to get into stocks and get the most out of your money.

Tip 1: Inform yourself thoroughly in advance

It sounds trite, but you should understand what you are putting your money into. If you are interested in a specific stock and don’t want to rely solely on your gut feeling, you should, for example, take a look at the AG’s annual report, the latest quarterly figures, analyses and economic forecasts.

Or you can use the expertise of professionals and prefer to invest in a stock fund. The advantage: The fund managers of your savings bank or bank will take care of the analyses. Here, too, you should inform yourself: How is the company rated in the annual Capital ranking, for example? And does the fund’s orientation match your personal risk-reward profile?

Tip 2: Don’t put all your eggs in one basket

Have you read up on the stock market and have a specific stock in mind? That’s a good start for beginners. But maybe you’re thinking about several stocks and can’t make up your mind. You don’t necessarily have to. Because once you start with an equity fund, your money will be spread across hundreds of different stocks. As an investor, you minimize the risk if a company posts bad figures or even goes bankrupt.

If you want to get into stocks, but want to take a little less risk, so-called mixed funds are also interesting. These invest the money not only in stocks, but also in interest-bearing securities. Depending on how the fund managers assess the markets, the proportion of shares can also be reduced from time to time.

In this way, you have spread your money twice: You distribute your money between equities AND bonds – and within these two asset classes, once again between many different individual securities.

Tip 3: Only invest available capital

You should only invest capital on the capital market that you do not have otherwise earmarked. If you know that you will need the money in the next five years for living expenses, to repay your personal loan or for other purchases, the following applies: Hands off. Because you should avoid a fixed time of sale, which could be particularly unfavorable at that time.

For example, you need to buy a car in two years. Until then, you invest the money in shares. But exactly at the moment when you need the car, the stock market has a weak phase. As a result, you have to sell at a loss.

Tip 4: Be patient with your investment

You need a new kitchen, but you are a few thousand euros short. So invest the money on the stock market and get the missing funds so quickly? Please don’t! When investing money on the stock market, you need more patience – it’s better not to bet on the quick euro. A good idea, on the other hand, is regular saving with a fund savings plan.

If you depend on speedy profits, you will inevitably have to bet on a high-risk investment. This can work out well, but far too often beginners in particular fall into a trap here. Because with an unbalanced portfolio, you could end up with nothing.

If, on the other hand, you show patience and invest with foresight, you have a much better chance of making the best possible investment. Over time, the risk of losing money with stocks decreases significantly.

Tip 5: Don’t let losses make you nervous

Of course, you go into the stock race with the expectation of achieving the best possible return. But the stock market is always on the move and your portfolio can also show losses at a certain point in time.

Price fluctuations are quite normal and happen again and again. This is not bad luck, but on the contrary a sign that the securities markets work and supply and demand change. Prepare yourself for the fact that corrections may occur and do not fall into panic and actionism. React with a cool head.

In the case of stocks, you can set yourself a “stop-loss” limit to be on the safe side, i.e. a value above which you definitely want to dump your investment. On the other hand, price corrections can also be just the right time to buy at a favorable price.

Tip 6: Remain skeptical about stock tips

You hear or read a surefire tip from a supposed stock market guru? With which more than 10 or 20 or more percent return is safe? Then we also have a tip for you: Be careful!

There are a lot of so-called experts in the field of financial investments who make promises to you. But you should always ask yourself what interest the person has in telling you this information.

It is therefore better to approach all too tempting tips and advice with a healthy skepticism.

Tip 7: Do not speculate, invest

Buy, sell, buy, sell: That’s how some people imagine investing in securities. Normally, this does not have much to do with reality. The fact that you buy a share and then immediately sell it again after days or weeks is hopefully the exception.

Because if you trade a lot and quickly, you produce one thing first and foremost: costs. When buying and selling, fees are incurred that must first be recouped by the performance of the stock or a fund.

If you invest in a structured and broad way, you don’t have to keep going in and out of stocks.

Tip 8: Use the compound interest effect

Let your money work for you. This sentence best describes what compound interest means for your investment. It is the lever that allows you to exploit its full potential.

The idea behind it is relatively simple: You reinvest your profits or interest to generate further income. In other words, you add your profits to the capital you have invested in order to have the chance of greater returns. With funds, reinvestment usually happens automatically, so you don’t have to take any action yourself.

Compound interest is one of the most important mechanisms of wealth creation. Albert Einstein answered the question what the strongest force in the universe was: “That is compound interest!” It pays off for you, especially in the long run. So use this effect to be able to increase your assets decisively.

Tip 9: Check your investment regularly

You should manage your investment with a steady hand. However, this does not mean that you should neglect your portfolio. Even if you have the financial market reasonably in view, signs can change. You should not sleep through such developments.

It is better to talk about your portfolio together with your investment advisor on a regular basis – preferably at least once a year – and make adjustments if necessary.

Tip 10: Don’t wait any longer

Do you feel there is still so much to learn and therefore don’t venture into stocks? Take heart, because every day without an investment is a day without the chance of a return.

You don’t have to be a stock market specialist to enter the capital market. That’s exactly why there are funds and professionals who take care of the management. And once you’re in – with a fund savings plan, for example – investing in the capital market is just normal for you.

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