Best option How to make money from your investment


If you want to make money from your investments, the Stock Exchange offers you one of the best options to grow your capital right away.

  Certainly, the technical vocabulary of finance professionals can be scary, and it's not always easy to know how to go about going public on the stock market.  However, once familiar with the financial markets of the world, novice investors quickly realize many opportunities offered by the equity market.

 What is the stock market?  How to invest in it?  How do you make money?

  Here's a complete summary of what you need to know to find out about investing in stocks and take your first steps on the stock market successfully.

  The basics of the stock market:-


  The stock market usually has a speculative jungle image without faith or law.  However, this is not entirely true since the stock market is strongly intended for business financing.

 A company can indeed proceed in two ways to finance itself:-


  Borrow from banks (bank credit) issue stocks or bonds on the financial markets

  This second option involves a meeting between investors (professionals or amateurs) and the company, aiming to convince the company to invest in its projects.  The stock market plays this role of intermediary between companies and investors.  It multiplies meeting opportunities, and simplifies business development.

  In other words, the stock exchange is the "place" where sellers and buyers agree on the price of their various financial transactions.  The stock transaction corresponds to the change in ownership of one or more shares in the capital of the listed company (the shares), and the price of the last transaction that took place on the market corresponds to the stock market listing.

  Stock market and risks: how to go about it?


  The stock market is not a quiet beach sheltered from the waves.  Indeed, no stock market investment is guaranteed, and financial crises are regular.  Investing directly in the financial markets is therefore not without risk.  For this reason, it is advisable to invest only money that you can do without.

  If you opt for an investor approach, it is generally recommended to opt for a long-term strategy (minimum 5 years) in order to allow stock prices to regress to stock prices below their equilibrium level.

  On the other hand, if you opt for a trader approach, you will want to speculate on the phrase-term price variations.  It will not be necessary to adopt rigorous risk management rules in order to preserve your capital.

  Before investing in the stock market, you must take all of the above necessary to inform yourself.  For this, monitoring economic and financial news regularly is the best way to stay on top of it.  You will get to know the main trends of the financial markets and the characteristics of each of them.

  You can also be interested in the news of the companies currently in your portfolio or enter it if the price of their shares has become more attractive.  During this step, watch out for false information posted on social networks and other internet forums, as these maneuvers can be simple attempts at price manipulation.  So learn to think for yourself so you don't get fooled!

  In all cases, and in all cases, remain lucid.  Have realistic gain goals, as well as a reasonable maximum loss threshold.  Knowing when to stop (especially when you start to make losses) is one of the most important qualities to invest in the stock market.

  It is inevitable to record some losses, but you will have to learn from your mistakes.  Certainly, error is human, but above all you must learn from it and not reproduce it.

  Finally, avoiding regrets for selling too early or too late at the risk of accumulating frustration.  It's impossible to predict exactly how the stock market will evolve, so be gentle with yourself, and always focus on the success of the next trade.

  Financial market players:-


 Investors:-


Whether institutional, professional or individual, investors risk their capital to finance listed companies or speculate on the evolution of their share prices.

 The transmitters:-


 States or companies, issuers offer financial securities in return for financing.  Among the most well-known financial securities, we find stocks (property titles relative to a fraction of equity) and bonds (debt securities relative to a fraction of the company's debt).

 Intermediate:-


 To make it easier for investors to get in touch with issuers, many companies and organizations act as intermediaries.  So here we find all of the banks and brokers.  These financial institutions have the approval of regulatory authorities.

Clearing houses:-


Clearing houses provide their confidence guarantee on managed markets by financing the financial contracts and their payments are honored by the various stakeholders.

Regulators:-


Finally, regulators monitor all markets and stakeholders.  Each country has its own market authority.  In France, the Autorité des Marchés Financiers (AMF) ensures compliance with the rules and good information for investors, especially individuals.

Stock market events:-


  The goal of a financial market is to connect issuers and investors, to give companies the opportunity to raise capital, increase their development, and prosperity.  In return for their risk taking, investors expect a return which they will receive either directly by the payment of a dividend or coupon, or indirectly following the increase in their valuation of their investments.  There are two key events that mark the life of listed companies.

 The IPO


  Over the course of its life, a company uses several modes of financing.  When the most traditional means (such as bank credit) are exhausted, it is time to turn to public funding and go public.  The sums received in return for the shares issued during the initial public offering (IPO) are then used to finance the development of the company.  In short, companies wishing to go public are increasingly looking to raise funds.

  Listing the stock exchange on your company is also a way for resellers to finders and managers to resell a few shares more easily.  Finally, being listed on the stock exchange is also one of the most effective means of making your company known internationally.

 The capital increase


  Once listed on the stock market, a company can choose to call on its shareholders to increase its share capital again, whether it is repaying its debt or strengthening its equity in order to begin a new phase of growth.  (internal or external).

  For companies whose financial situation is unstable, it is a good alternative to get a new health.  They can then grant a "subscription right" to the historical shareholders in order to avoid their dilution and encourage them to continue with the adventure.  Thanks to these subscription rights, the shareholder can indeed buy a number of new shares proportional to his shareholdings.

  Investor profile: How to define it?


  Some investors are bolder than others.  Some people love to take risks, others prefer to be cautious, even if it means missing valuable opportunities.  To know your investor profile, it is essential to analyze your personal financial situation, but also your personality traits.

 Resistance to Stress:-


  If you do not resist stress well, it is preferable to avoid overly speculative values, and in particular "cyclical" values ​​whose prices will vary widely depending on the state of the economy.  You will then prefer to have more resilient "defensive" stocks in the event of economic turbulence.  Do not neglect this emotional factor, as many investors find themselves in a lack of difficulty knowing how to manage their stock market crashes during their fears.

 Patience:-


  According to Warren Buffet (one of the richest and most famous investors on the planet), the financial markets are a tool for "transferring money from the most impatient to the wallet of the most patient".  When making your investment choices, take into account your investment horizon so that it is not too far from your expectations.

 All about financial intermediaries

  Before you start investing in the stock market, you need to understand how financial intermediaries work.

 Brokers:-


  The most important link in the chain, the broker is a manager in relation to clients and the stock markets.  It provides access to a simple stock exchange platform and responds to requests from regulators.

 Nowadays, it's possible to classify brokers into two families:

 General banking services: generally high costs, limited range of assets and financial products;  Brokers specializing in the stock market: better structure, tools at the cutting edge of technology and competitive prices.

 Market makers (or Market makers)


  Their mission is to offer a price for the purchase and sale of each financial product.  There is no need to pay directly to a market maker, as their margin already includes the difference between the sale price and the purchase price (spread).

 All about stock market products:-


 To optimize your stock market investment, it is important to know the different financial products that exist.  Indeed, it 's not just actions!

 Listed or over-the-counter products:-


 Contrary to popular belief, exchanges of products listed on the stock exchange are not the most important in terms of volumes.  There are for example much more liquid over-the-counter markets such as the Forex (foreign exchange market).

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