That's it, you've bought your first shares.
You have just entered the front door into the wonderful world of shareholders but you wonder what you should do these shares to maximize your return.
If you are asking yourself this question after your first transaction, then you obviously forgot to do your research on how the stock market actually works.
It is very strange to note the number of investors who decide to jump into the stock market and ask themselves the following question only afterwards: "Why are we buying shares amongst other things? " Often, the answer is: to achieve gains above the risk-free investments while having a relatively limited exposure to risk compared to other products (derivatives).
Never be too confident As everyone knows, investing in shares means acquiring part of the ownership of a publicly traded company at the best possible price (depending on your own judgement), knowing that these values will fluctuate according to supply and demand.
When demand exceeds supply, your shares go up and you get a virtual gain.
If supply exceeds demand, your shares go down and you obviously get a virtual loss.
We say "virtual" because no gain or loss is realized until you actually make the decision to sell your shares.
On the stock market you should ban the words "certainty", "it is mathematics", "certainly" or "risk-free return".
If you are a beginner, you will soon realize that nothing is ever safe in your portfolio and the price of your shares will vary widely based on all sorts of external events, often unexpected.
Proceed methodically However, the stock market is not a like a lottery or gambling in a casino.
There are, unlike gambling, research methodologies you can follow to discover investments with potential at a specific time.
Manage your portfolio To manage optimally your portfolio made of stocks on a daily basis, here are some tips: - Invest the money you do not need short-term - Have a good memory - Mix the information you get from different sources to establish your own opinion - Be lucky:) - Have in your possession modern computer hardware and software - Do not be gullible (not gullible at all) - Underestimate the possible gains, set yourself a specific goal - Overestimate the losses and their consequences - Adjust your acceptable loss level with a maximum of 18% (except for index trackers) - Have common sense and logic - Do not let the short-term swings affect your mood - Do not be euphoric, keep cool under all circumstances - Get the most accurate information possible as quickly as you can, preferably before other investors From all this information and your state of mind, you should be able to react instantly when entering trade orders in a timely, efficient and thoughtful manner.
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