However, there are many things to consider before jumping into actual investing. First of all, you have to be clear about what you want to invest in and why.
Secondly, don't be fooled by the fact that one stock is doing very well: it could be a passing moment, and other stocks that are apparently not so profitable could instead be much better in the long run.
Thirdly, use what you know and understand so as not to be misled by others who may have less knowledge than you.
Decide well what and how much you want to invest
If you want to be successful in the stock market, it is important to start by deciding how much you are willing to invest, as this is still a risk on your money, and also how much return you expect to get in order to consider the investment a success.
Make sure that both points are in line with your financial possibilities and needs: starting with too much money invested could be a risk you cannot afford to take, just as setting your goal too high could lead you to never finalise your investment, always expecting to achieve an unrealistic gain.
Greed is the main risk in investing, often higher than wrong decisions.
Being too greedy may lead you to invest much more than you can afford just to seek a higher return, just as it may lead you not to sell the shares you bought, despite a good potential return, just because you want to wait until you can earn even more.
Understand the risks involved
As an investor, you need to understand what the risks are and how they work in order to avoid making mistakes that could cause you to lose money.
It is important for investors of all kinds to be aware of the risks involved in investing.
The first thing you need as an investor is diversification; this means having multiple sources of income within your portfolio, so that if one of them fails, the others can continue to go strong.
When choosing companies to include in your portfolio, look at their fundamentals, such as analysing revenue growth trends over time, rather than focusing only on short-term results, as these can be misleading indicators of the overall health of success.
Invest in shares of solid companies
Investing in stocks of solid companies is a good way to start investing. A solid company is one that is financially stable, has strong leadership, and is profitable.
Section: only invest in cryptocurrencies if you know them
One of the most popular ways for investors to make money by trading cryptocurrencies is to buy them at a low price and later sell them at a profit.
This strategy can be profitable under certain circumstances, but it also carries an element of risk: if an investor buys too many coins at once without carefully assessing their value or their potential use as a currency, they could end up losing their entire investment due to unforeseen circumstances.