The 5 essential rules for investing in the stock market... without stressing!
By - RC Prabir .
Contrary to what is often thought, it is not necessary to spend entire hours behind a screen to invest successfully in the stock market.
Here are some tips for investing without stress...
1/ Choose the right tax envelope!
The main tax envelopes are the PEA, the securities account, life insurance and the PER... For beginners, it is wise to open a PEA and life insurance:
- the PEA is tax-advantaged and is designed for long-term investments
; - life insurance combines stock market investments and precautionary savings with euro funds for example...
2/ Choose the right media for investing
You have the choice between individual company shares, investment funds (UCITS), ETFs or trackers that bring together shares replicating a stock market index. ETFs
are particularly advantageous due to their diversity and their cost, which means in short that professionals indirectly manage a portfolio of shares for you...
3/ Select the broker suited to your level
You have the choice between managed management and free management... In the first case, the broker builds your portfolio. In free management, you can choose a single ETF like the MSCI Word ETF made up of thousands of companies.
4/ Keep precautionary savings
In the event of personal difficulties while the markets are trending downward, it is necessary to keep precautionary savings which can be mobilized quickly without having to sell in poor stock market conditions.
5/ Invest regularly over the long term
It is better to invest small amounts regularly than a large amount all at once! It is a long-term logic that will prevent you from stressing out while waiting in vain for the right moment to invest... By investing gradually, you can also average out your positions by reinvesting at a better price if your favorite stock has fallen on the market...