Have you set aside some money, more or less? You can invest in stock market operations to make them profitable. In fact, it is a very lucrative investment. However, it is crucial to be well informed about the risks before making any decision. Why should you do this? Because, yes, the stock market can bring you a lot of money. But it can also make you lose a colossal amount of money…
The market trend and the listed company
You want to buy shares? First and foremost, you have to consider the integrity of the managers. Indeed, it is not that a company has a lot of media coverage that it is doing very well. No, it is not always the case! You have to be very vigilant because the information published on the Internet and in the press is not always reliable. Therefore, delete from your list the managers who have been sanctioned by the Autorité des marchés financiers.
In addition, before investing, it is crucial to be informed about market trends, stock market developments, etc. To master the most essential principles, you can take introductory courses in the stock market, at the grandes écoles or by distance learning.
Note: When you plan to carry out stock market transactions, you must use a broker. Nevertheless, it is advisable to compare the rates, which can vary from simple to double depending on the provider.
The ratio of the share price to earnings and the number of shares on the stock market
The calculation of this ratio or P/E is an important part of the stock market. The ¨PER indicates the value of a share. You should take this into account to avoid buying a stock on the spur of the moment. The calculation is simple.
PER = Share price / Net profit per share
for a PER between 0 and 10, the action is underestimated
for a PER between 10 and 17, the score is in the middle
PER more than 17, the investment is overvalued
In addition, diversification of investments is essential to a successful stock market stock. So don’t put everything you have in one stock. Diversification is one of the best strategies for successful stock market trading!
Note: A stock may be sold at a low price, but the future may be bright for some businesses. That’s why it’s important to be informed about everything that’s going on in the sector!
In stock exchange transactions, there is no such thing as luck. Therefore, put aside your emotions and avoid investing on a whim! The decision must be carefully considered.
Moreover, wealth projects are also interesting investments. Nevertheless, you should make the right choice to avoid unpleasant surprises. The accompaniment of a professional is often necessary if you lack experience!