Recently, a highly experienced investor ?? I see saving as a variable, it sometimes falls hard, and sometimes it rises adamant ??. They were striking words, especially since it also requires a lot of emotional detachment, because who squeezes ?? m now not when you investment ?? 10,000 - month sees decline sequentially in value? Fear is a dangerous emotion to invest!
What do you therefore need to be successful? Correct: discipline, time and patience.
The following paragraphs are a few tips to be successful in the stock market.
The earlier you start, the better. When you're young you still have plenty of free time and investment is required once a long-winded, so only start on your 60 th ?? makes little sense. The best is of course if you have a family member that you can make some ropes. And stab invest mainly time in reading books.
In short, the younger you start, the longer you have the time to grow your capital and the younger adult you are successful. But how do you realize this? Please read the following tips.
Why then a mutual fund? A fund invests spread and that is not possible for many individuals, and spread is absolutely important.
Perhaps you know the formula ?? dollar cost averaging ?? . This means that you are buying more and a small portion effects over a long period of time. You therefore buy even more when the market is low and less when the market is high.
Growth capital: monthly 200 euro so you stop investing EUR 200 each month into a fund, noting the 20 euro fund, you automatically buy 10 pieces. Note the fund a year later, for example, 100 euro, you buy automatically 2. So you buy more if the shares into which the Fund invests are cheaper, and less if the shares are expensive.
Right you see a chart here, a picture often says more than 1000 words indeed.
For example, you invest monthly 200 euros in a fund with a return of 8% per year, then you have after 30 years of 249 054 Euro.
Shell returns with or without reinvested dividends, invest in dividend payout thus FOREVER! Do not give it out to a new phone or anything, but reinvest it. See the effect of reinvested dividends in the graph on the right. The red line shows the efficiency dividend is issued. The blue line befitting a successful investor, which are indeed dividends reinvested and thus its ability to develop many successful shows. You can see who the real winner is.
Find hence no such shares or investment funds pay dividends. The return will be similar to the above red line Shell. So again, a dividend is very important.
Briefly, the tips at a glance:
- Start young, therefore you have more time to grow your assets;
- Siege monthly, with the familiar dollar cost averaging formula;
- Have time and patience, the key to success;
- Keep it simple, do what you know and understand what you are doing;
- Dividend is the main source of capital, herbeleg this always!