Set investment objectives
Before you start investing, you should set concrete goals. Based on these objectives, you can define the investment strategy.
How can I start investing?
Investing is generally not difficult. However, you need to do some preliminary work in order for investments to be successful. We show you the steps you should take and how to start investing the easiest way.
How to start investing
Six steps to investing on the stock market
1. Acquire financial knowledge
You don't need to have an economics degree to start investing. But you can't do it without any financial knowledge at all. It helps if you build up a basic understanding of the subject. You can find the main stock exchange terms here. Understanding these terms will give you an important foundation for making investment decisions and the opportunity to achieve your financial goals. By continually learning, you can generally optimise your investment strategies and invest more safely.
2. Define your investment strategy
Think about what goals you want to achieve – whether it's early retirement or buying your own home. Your investment objectives have a direct impact on the time horizon, risk and availability of capital. A long-term objective usually allows you to make more risky investments with potentially higher returns, as you can wait out market fluctuations. Short-term goals generally require safer and more liquid investments so that the capital is available when you need it.
3. The magic triangle of investing
An investment always requires a compromise between the three factors of liquidity, security and return. No investment can usually achieve all objectives equally. Depending on how you weigh the factors, different asset classes may be suitable: Those seeking security may prefer government bonds, which may provide lower returns. If the focus is on high returns, equities could be interesting, but they have higher risks.
4. Broad diversification
There's no way around it, broad diversification is essential. By not placing all your eggs in one basket, you can reduce the risk of losses – this also holds true for financial assets. You can diversify across asset classes, regions, sectors and currencies. This typically minimises the risk that a single negative factor affects your overall investments and gives you the chance to achieve more stable returns in the long term.
5. Review your investment strategy
The financial markets are constantly changing, as is life. You should therefore regularly review your investment strategy. If your life situation or goals change, adjust your strategy. To make informed decisions, it is also important to be informed about market trends and economic developments. Talking with other investment experts can also help.
6. Place a buy order
To invest, first open an account and a custody account if you do not already have one. Log in and navigate to the “Securities trading” area. Search for the desired financial instrument by ISIN or name. Review the details and then place a buy order by specifying the number of units and the desired purchase price. Confirm the order and complete the purchase.
