Investing in the stock market: the 3 questions to ask yourself before getting started

Investing in the stock market to grow your savings? At first glance, this seems like a great idea. The key to a well-managed heritage lies, among other things, in the ability to diversify one’s investments. However, risky investments are not good for all savers! On its official website, the Ministry of the Economy explains that a share is “a share of the capital of a company”. Thus, “by buying shares, you invest in a company and receive dividends if it makes a profit”.

Before getting started, you should ask yourself a number of questions. The Ministry of the Economy lists three, namely:

In practical terms, it is important to remember that buying stocks involves risk. “You can never be sure of finding all of the money invested,” insists the ministry. In addition, you have to know how to arm yourself with patience! Investing in the stock market requires knowing how to wait for the action to increase in value before reselling it. “You are therefore linked to stock market fluctuations and the Autorité des marchés financiers recommends planning an investment for a minimum of five years”, continues Bercy.

Finally, you will have to choose between direct purchase and collective investments. In the first case, you are alone with the rest of the world and must choose and monitor the stocks in which you invest. In the second, your portfolio is managed by a professional. It’s up to you to see if you have the time – and the skills – to monitor your investment yourself.

Investing at the right time, paying attention to pitfalls, getting off to a smooth start… This is one of the topics covered by Lettre HB. For more free information, click the button below.

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