Mark Lyttleton is a business mentor, speaker and angel investor with a particular focus on supporting early-stage companies created to achieve a positive planetary impact. This article will look at stock market investing, providing information for beginners just getting started.
Investing is a tried-and-true means of building wealth, enabling individuals to increase their money steadily over with time by making small but regular investments. From the investor’s perspective, it’s important to begin investing as early as possible, and the stock market is a good place to start. The attached infographic takes a closer look at some of the most popular online trading platforms of 2023.
Whether you start with £1,000 in savings or can only afford to set aside £25 per week, it is possible to invest in the stock market even with a modest fund. The important thing is for investors to do their homework, deciding their risk tolerance and investment goals and weighing up the costs associated with investing in stocks or mutual funds. In particular, investors should investigate the various broker platforms, clarifying their particular requirements of each to find the best fit for their needs.
Investing in stocks enables people to acquire ownership shares in public companies. If that stock becomes more valuable, they could earn a profit should they opt to sell it on to another investor. Today, most people invest in stocks online via brokerage accounts, although some purchase funds instead, enabling them to hold a portfolio of different stocks chosen by an investment professional within a single investment.
When people invest in stocks, they are hoping to see the company perform well over time. A popular means of beginners becoming involved in investing in stocks and shares is by opening an online investment account, which they can use to invest in shares.
Prior to committing funds, the beginner needs to determine their investor approach. Are they an analytical person who enjoys conducting research and crunching numbers, or would they prefer an investment platform that runs with very little input needed? Do they have time to read about different companies they are considering investing in, or are they time-poor with little inclination to learn about stocks?
From individual stocks to index funds to robo-advisors, there are a variety of different investment tools available today for novice investors just getting started. The attached PDF takes a closer look at asset allocation and why it is important for investors to balance risk and reward by apportioning assets in line with their investment goals.