Choosing the right investment tool
A website? An app? Yes, but which one do I choose if I’m just starting out in investment? As a general rule, if you’re just starting out, it’s a good idea to…
Did you know?
1. When you hold shares in a company, you are, to a certain extent, an owner of the company. Of course, you only own a tiny percentage, but it’s worth knowing, don’t you think?
2. Depending on which sectors you invest in, this can vary significantly. For example, the technology sector is known as being a volatile sector, unlike the energy sector and the services sector which are, generally, relatively stable.
3. Shares may be listed on multiple stock exchanges. Yes, the world contains more than one stock exchange! That’s why it is essential that you choose the market most appropriate for you. A few stock market indices that you may have heard of are: Dow Jones, Nasdaq, S&P, Dax, etc.
4. With multiple stock exchanges worldwide come multiple currencies! You must not forget the exchange rate when considering an investment in a foreign currency.
Do you know how the markets and investment products work? If you are the type of person who is keen to know everything, then seek out information, read books and articles, watch videos, subscribe for magazines, listen to podcasts, etc. This will provide you with a good understanding of the subject in the best way possible.
Here are a few free websites and podcasts that we recommend to improve your knowledge:
Spuerkeess has also produced a Complete Investment Guide (Download the investor guide).
These are only suggestions - there are, of course, many other financial websites and you should choose those that you find the most accessible.
Shares are for you if:
you invest over the long term.
you have time each day to devote to reading news articles about your shares.
Go to your securities portfolio or to Speedinvest to begin searching for the shares that you want to buy. Shares are searched for using their ISIN codes, which are alphanumeric codes, the first two letters of which identify the country in which the security was issued (for example, LU for Luxembourg, FR for France or US for the United States, etc.).
If you want to buy shares in a company, you first need to search for the company’s ISIN code, so that you can find it easily. Simply search for the ISIN codes on Google! You can then go to your securities portfolio and search for the shares using the 12-digit code, then buy the shares if you wish so. It’s as simple as that!
Only invest money you don’t need in the short term.
Use a software tool tailored to your skill level to make investing easier.
Monitor the companies you have invested in.
Find out about transaction fees and set yourself a limit on your orders to avoid any surprises.
Diversify your investments (different companies and different sectors). The LUXFUNDS range of equity funds are a good alternative 😉.