Many people associate stock trading with high risk and large sums of money.
But the purchase of securities can also be worthwhile with little investment.
When it comes to stock trading, many think of chaotic scenes from Hollywood films or the big stock market crash of 2008. In reality, however, trading in stocks looks very different.
Although there is the possibility of getting large amounts of money at risk, long-term investments are recommended for beginners and private investors who want to be on the safe side.
We explain what stock trading means and how beginners can get started on the stock market *.
Shares - what is it anyway?
Shares are
shares in a company
that private individuals can also acquire. If a company needs money, it goes public in many cases. There his share capital is divided - the individual parts of this capital are now sold as shares. The person who buys the stock is called a
shareholder
. Shareholders can benefit when the company makes a profit. You receive a share of the profits, the so-called
dividend
. Many companies distribute these once a year, others quarterly. However, some do not pay a dividend either, according to verbüberszentrale.de.
If the value of the company increases, for example through a successful new product line, its share price rises.
If shareholders sell their shares now, they can make a profit.
Provided that the value of the company was even lower at the time of purchase.
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Stock trading: These are the options
There are two basic models of stock trading.
These differ based on their risk and the amount of possible profits.
Day trading
-
the variant for the experienced:
Day trading is not about investing, but about speculative trading in securities. Investors keep an eye on the stock market at all times. They buy and sell stocks, trying to catch the time when they make the most profit from them. This type of stock trading is very risky. Because even experts can often only speculate whether the respective share price will rise or fall. At best, short-term, high profits can be achieved for this.
Long-term investments - suitable for beginners:
With long-term investments, shareholders keep their shares even in the event of price fluctuations.
To do this, they buy certain stocks or invest in a so-called equity fund.
This contains shares from various companies.
This has the advantage that the risk of losses is reduced.
One investment trend is the so-called ETF fund.
With the help of computer algorithms, it tracks a stock index such as the DAX.
Investors can diversify their money very widely - and minimize their risk.
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Stock trading: how to buy stocks
Interest rates are low - so accumulating money in a savings or overnight account is hardly worthwhile these days. In stock trading, on the other hand, there is the chance of substantial profits. Anyone who wants to trade in shares first needs a so-called
securities account
. Interested parties can open this at a bank or an online broker. You can then organize purchases and sales from the depot. Private investors cannot trade shares directly on the stock exchange. For this they need a bank or a broker. In order to regulate the financial situation, a separate
trader or clearing account is
required in
addition to the deposit
.
Investors can invest in stocks with little money.
Their price is regulated, for example, by supply and demand.
Ultimately, however, there remains some risk in trading stocks.
There is always the risk of depreciation or a stock market crash.
Therefore, it makes sense to only invest money that is not needed immediately.
(lw) Merkur.de is an offer from IPPEN.MEDIA.
Sources: dpa, focus.de, t-online.de
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