Introduction

Best Stocks for Beginners: We were all beginners at something once. No one is born knowing, and in this article, I would like to show you the questions I asked myself when I began to learn to invest in the stock market and everything I have learned from saver to investor.

Compared to other investment options, stock market investing offers the highest levels of security, profitability, liquidity, and flexibility. By setting up an estate for your retirement or heirs, it enables you to safeguard your funds against inflation.

What is the best stocks for beginners?

You have to think of the stock market as a supermarket where producers (companies) put a part of their property at the disposal of some buyers (shareholders) to capture money for their growth.

The stock market ensures that the purchase and sale of shares occur safely and attracts more companies that want to share their property with savers who want to invest money.

How to Invest in the Best Stocks for Beginners?

It is essential to know that there is no single bag. There are currently more than 70 exchanges globally on the five continents.

Almost all developed economies have one or more stock exchanges in their country, in which national companies or companies with interests in that market are generally listed.

Where to Best Stocks for Beginners?

Let’s look at all the options available for investing and which ones are suitable for beginners.

With your money, you can invest in the following types of assets

  • Real estate: apartments for rent, garages, commercial premises, warehouses
  • Land: crops, plots
  • Physical precious metals: gold, silver, platinum, diamonds
  • Art: paintings, sculptures, musical pieces, cinema
  • Collectables: stamps, coins, wines, whiskey
  • Bank assets: deposit, promissory notes
  • Private companies: startups, sports teams
  • Fixed Income: bonds, treasury bills, debentures
  • Alternative financing: crowdfunding, crowdlending
  • Stock market: stocks, investment funds, ETFs
  • Derivatives: options, futures, CFDs, warrants
  • Criptomonedas: bitcoin, Ethereum, etc

Advantages of Investing in the Stock Market

Periodic Income: It is a significant benefit since the portfolio of shares that we create will generate Income through dividends from the claims.

Keep in mind that the money obtained by collecting the dividends can be reinvested in buying more shares or used for own consumption, depending on the needs of each investor.

Dividends are companies’ benefits each year and decide to distribute among their shareholders.

Low commissions: They are soft if we compare them with those of other assets or the expenses of investing in a property, but of course, we must bear in mind that they are charged per operation.

Therefore, we have to inform ourselves about the broker’s commissions before starting to operate.

Total freedom to QA  2Invest: We do not have any obligation to buy or sell if we do not see that it is the moment for it; we own our movements at all times.

Diligent in deciding to enter or exit: We can enter or exit the market at any time; our positions have no influence compared to the size of the market.

Invest in securities that are outside of the stock market indices: We have the possibility of investing in excellent companies that do not meet the requirements due to size or liquidity to belong to any index and to which indeed no investment fund pays attention

Way to fight against inflation: the stock market allows us to invest in assets that protect us from inflation, such as real estate companies, raw materials, etc.

Risks of Investing in the Stock Market

Just as I have highlighted its advantages, we must also consider the risks we face when investing.

To our ignorance, when we start to be interested in the stock market, we must add the breadth of terms, analysis, “experts”, markets and products that exist.

Before investing, we must take into account risks that exist:

– Market risk: it is possible that when you decide to sell your investment, it is worth much less than what you had invested.

– Liquidity risk: you cannot find someone to buy the shares you have purchased, and you have to offer them a discount.

Best Stocks for Beginners

Exchange rate risk: even if your investment is performing well, you could lose money if you invest in shares in dollars or any currency other than the euro and the exchange rate is unfavourable.
I suggest reading about the dangers of stock market investing if you want to learn more about them in-depth.
It is crucial to understand that in the event that a company files for bankruptcy, you could lose every penny you invest in the stock market. Even so, you will never lose more than you put in, and the likelihood of this occurring in a diversified portfolio is very low.

To avoid these risks of investing in the stock market, the most important thing is that you read, educate yourself and analyze and get to know the sector and the companies for yourself; In addition, if you have doubts, at Rankin, you can consult and post your questions in our Stock Market Forum.

Of all that list, without a doubt, for beginners, the best option to invest in is the stock market, in a diversified and long-term way.

How do you make money on the Stock Market?

By buying shares, you can earn money in three ways:

That the stakes rise in price

That the company distributes dividends (annual profits distributed among the shareholders)

The exchange rate is favourable to you if you invest in shares outside Europe.

How much money does it take to invest in the stock market?

Let’s see the three alternatives that we discussed to invest in the stock market. And the money that is needed in each case to start investing

some brokers allow you to buy fractional shares

Investment funds:  the minimum required by the manager will depend

It can range from one share to tens of thousands of euros

How to Start Investing with Little Money

If you have little money to invest, the main problem is commissions. Investing is not free, and you should know it from the beginning.

Imagine that you start investing with €100 and the broker’s commission is €10 for buying a Repsol share. You will have lost 10% of your investment as soon as you start.

For that, I give you two recommendations:

Invest only in low commission brokers: I leave you our two comparisons

Cheap online broker for Spanish stocks

Cheap online broker for international stocks

Reduce the number of purchases and sales: the  less you trade, the minor damage

That is why it is best if you have little wealth to start. With a portfolio of investment funds or rob advisors

Also Read: Reduce the Complexity of Managing Information in your Company