Going public is often less difficult than it seems.
But that doesn’t mean you have to jump in with your eyes closed without thinking.
A minimum of preparation is necessary to avoid costly mistakes.
Learn to invest
The best way to crash in the stock market? Invest without thinking .
Like watching a YouTube video of someone showing you their great looking wallet and deciding to replicate it at home.
Or deciding to buy Tesla stock because you hear about it all over the place, and a lot of people say they made a lot of money from it.
Investing requires a strategy, and above all, taking into account many personal criteria.
This is why it is essential to train and learn before starting .
This does not mean that it is necessarily very complex, especially if you choose to invest for the long term. Only that there are basics that you should master to avoid messing up.
A good way to educate yourself financially on investing: books, which are full of advice from experts in the field.
If you wish, you can also be accompanied by Wealth Management Advisors whose job is precisely to support you in your financial decisions.
Invest money you don’t need
As you were told earlier, and as you have already heard in the disclaimers on the radio, “investing presents a risk of capital loss” .
Which simply means that you risk losing money by investing it in the stock market.
It is therefore essential not to invest the money you need to live there .
Otherwise, you could find yourself seriously impacting your financial situation.
The investment is also often to be considered for the long term.
Then, as the maturity date of your project approaches, you can gradually secure your investments by allocating a larger portion to low-risk assets such as bonds or euro funds (an investment with guaranteed capital that you can find in life insurance contracts).
Some life insurance policies (we can, for example, cite , which we discuss a little further down), do this automatically for you.
Also, before you start, make sure you keep a precautionary savings in a savings account or any other easily accessible investment.
Define an investment strategy
Take the time to think about your overall investment strategy – not just buy stocks here and there because you like them, or you’ve heard they’re a good investment.
This is an important point for any long-term strategy, which should be your main objective to limit risks and realize your projects.
In particular, this can allow you to avoid selling too quickly during periods of market declines that could cause you to panic. And to stay calm during fluctuations because you know your goal is far in time anyway.
Choose between free management and controlled management
There are two main ways to manage your stock market investments: free management and controlled management.
There is technically no better or worse way: it all depends on what you prefer and how much weight you personally place on each of the pros or cons.
Free (or direct) management
Free management is interesting if you are the type who wants to manage everything yourself. You want to choose directly which stocks or funds you want to invest in and monitor the performance of your portfolio yourself.
Directed (or delegated) management
If you are more of the “less I do, the better off” type, delegated management may be for you.
Here, you entrust the management of your investments to a professional, or go through what is called a robo-advisor .
Your money will therefore be invested and managed by these professionals. This may, however, result in higher management fees .
And why not also a mixture of the two?
You can choose to go through delegated management either for all of your investments (for example by calling on a Financial Investment Advisor), or decide on a case-by-case basis for each of your investments which you prefer.
Nothing therefore prevents you from varying the management methods according to your investments.
Track your investments
Investing is good. But it is also important to follow your investments – and the place they have in your total wealth.
Already, this will allow you to have an overall view of your financial health. But it will also allow you to make better investment decisions in the future.