How to invest in the stock market: our tips for managing your portfolio
You've made up your mind, you want to invest your money in the stock market. This is not a decision to be taken lightly, the choice of your investments requires more thought. What strategy should you adopt to invest in the stock market? How much money should you invest? When can you start to benefit from your investments? Discover all our advice on how to invest in the stock market with peace of mind!
WHY INVEST IN THE STOCK MARKET?
When you invest, you buy shares in one or more companies. You then become a shareholder and own a small part of the capital of that company. With the investors' money, the company can finance various projects or grow. You can choose to invest responsibly by choosing to support a company that you want to see grow and whose project is close to your heart, for example.
Another reason to invest in the stock market is to make your money grow. Thanks to your various financial investments, don't let your money sit on a savings account and diversify your investments to increase your chances of making a profit. Investing in the stock market can bring you a high return, provided you know how and when to invest your money.
Good to know: to be able to invest in the stock market, you must be of age and have a bank account in your name. For minors aged 16 or over, parental authorisation is required to make their first stock market investment.
DEFINE YOUR BUDGET BEFORE INVESTING IN THE STOCK MARKET
Before you make your first investment in the stock market, decide how much money you want to put into it. Our advice: avoid investing all your savings in the stock market. Set up two envelopes: a savings budget for life's contingencies and a budget dedicated to your stock market investments.
Another piece of advice is to be sure that this is the right time to invest for you. A purchase in sight, studies on the horizon, will perhaps push you to postpone your investment project for a few years.
Good to know: you thought investing in the stock market was only for big budgets? While some investments require a minimum amount, most investments are possible regardless of your budget. Whether you have a budget of €50 or €1,000, there is bound to be an investment solution that suits your profile.
STOCK MARKET INVESTMENT: DIVERSIFY YOUR FINANCIAL INVESTMENTS
Règle numéro 1 lorsqu’on commence à investir son argent en Bourse : diversifier son portefeuille financier. Plan d’épargne en actions (PEA), fonds commun de placement (FCP), compte-titres ordinaire (CTO), assurance-vie, cryptomonnaies, actions, ETF, les possibilités sont nombreuses. Diversifier son portefeuille d’investissements permet de vous assurer une certaine sécurité en cas de mauvais placement ou de soudaine chute boursière sur un marché financier.
Rule number 1 when starting to invest your money in the stock market: diversify your financial portfolio. Stock savings plan (PEA), mutual funds (FCP), ordinary securities account (CTO), life insurance, crypto-currencies, stocks, ETFs, the possibilities are numerous. Diversifying your investment portfolio gives you some security in case of a bad investment or a sudden drop in the stock market.
Good to know: The regularity of your investments also plays an important role in your chances of getting an attractive return. Make small, regular investments rather than investing a large sum all at once.
Investing in the stock market: how to choose your investments?
Ordinary securities account, life insurance, equity savings plan (PEA), crypto-currencies, ETFs, are you hesitating between the different products? Choose your financial investments according to :
- your investor profile,
- the degree of risk you wish to take,
- your budget,
- your objectives,
- your experience in the stock market.
ALONE OR ACCOMPANIED: HOW TO INVEST IN THE STOCK MARKET?
You would like to invest in shares on the stock market, but you don't know much about it? Although investing is accessible to everyone, it is advisable to seek professional help, especially if you are a beginner or have little time to devote to your stock market investments.
The best way to start investing in the stock market: the PEA (Plan d'épargne en actions). The PEA allows you to invest in various shares of your choice and to benefit from a tax exemption after 5 years. Another advantage is that the PEA is managed by a professional, which means you can avoid making any mistakes in your first investments.
For your first stock market investment, opt for management under mandate or managed management with a broker. The professional will help you define which investments are advantageous for you and will monitor the stock markets to ensure that you invest in the right shares at the right time.
💡 Before you make your first investments in the stock market, start by getting your feet wet on a trading app. There are several free apps to practice managing a virtual portfolio, such as Stock Trainer. This application allows you to invest virtual sums in shares on different markets, both French and international, and to follow their evolution with the stock market price in real time. Some banks also offer an introduction to trading by creating a virtual stock portfolio on a simulation site.
THE BEST INVESTMENTS REQUIRE PATIENCE...
Are you looking for long-term or short-term returns? Investing in the stock market allows you to make different kinds of profits, depending on the type of financial investment. While some investments allow you to make profits quickly, others require a little patience. In the stock market, it is advisable to invest for at least 10 years to hope to see your first profits while limiting the risk of losses.
Although investing in the stock market provides a higher and sometimes faster return than saving in a passbook, it is not without risk. It is important to be sufficiently informed before embarking on an investment.