It sounds trite, but you should understand what you’re putting your money into. If you are interested in a specific stock and don’t want to just rely on your gut feeling, you should take a look at the company’s annual report, the current quarterly figures, analyzes and economic forecasts.

Or you use the expertise of professionals and prefer to invest in an  equity fund . The advantage: the fund managers at your savings bank or bank take care of the analyses. Here, too, you should inform yourself: How is the company rated, for example, in the annual capital ranking ? And does the focus of the fund match your personal opportunity/risk profile? Your Sparkasse advisor will be happy to help you with your selection and has the best tips.

Have you found out about the stock market and have a specific stock in mind? This is a good start for beginners. But maybe you’re thinking about several titles and can’t decide. You don’t have to. Because when you first start with an equity fund, your money is divided into hundreds of different values. As an investor, you minimize the risk if a company writes bad numbers and even goes bankrupt.

If you want to invest in equities, but want to take a little less risk, so-called mixed funds are also interesting. They invest the money not only in stocks, but also in bonds. Depending on how the fund managers assess the markets, the proportion of equities can sometimes be reduced.

So you’ve diversified twice: You spread your money over stocks AND bonds – and within these two asset classes again over many different individual values.

You should only invest capital on the capital market that you have not planned elsewhere. If you know that you will need the money in the next five years to make a living, to pay off your personal loan or for other purchases, hands off. Because you should avoid a fixed time of sale, which could then be particularly unfavorable.

An example: you have to buy a car in two years. Until then, invest the money in stocks. But just when you need the car, the stock market is in a weak phase. The result: you have to sell at a loss.

You need a new kitchen, but a few thousand euros are missing. So invest the money on the stock exchange and get the missing funds as quickly as possible? Please do not! When investing in the stock market, you need staying power – it is better not to bet on a quick euro. A good idea, on the other hand, is to save regularly with a fund savings plan .

If you depend on quick profits, you will inevitably have to make a risky investment. That can work well, but far too often beginners in particular fall into a trap here. Because with an unbalanced portfolio, you could end up with nothing.

If, on the other hand, you show patience and invest with foresight, you have a much better chance of making the best possible investment. Over time, the risk of losing money on stocks decreases significantly. Anyone who has invested in the Dax values ​​with a fund savings plan for at least eleven years has always ended up with a plus. However, investment funds are also subject to price fluctuations.

Of course, you go into the stock race with the expectation of achieving the best possible return. But the stock market is always on the move and your portfolio can also show losses at a certain point in time.

Fluctuations in exchange rates are completely normal and happen from time to time. This is not a misfortune, but on the contrary a sign that the securities markets are working and that supply and demand are changing. Prepare yourself for the fact that corrections can occur and do not panic and take action. React with a cool head.

For stocks, you can set a “stop loss” limit to be on the safe side, i.e. a value above which you definitely want to sell your investment. On the other hand, course corrections can also be exactly the right time to buy more at a cheap price.

You hear or read a surefire tip from a supposed stock market guru? Where more than 10 or 20 or more percent returns are guaranteed? Then we also have a tip for you: be careful!

There are a lot of so-called experts in the field of financial investments who make you promises. However, you should always ask yourself why the person is giving you this information.

It is therefore better to approach all too tempting tips and hints with a healthy scepticism.

Buy, sell, buy, sell: This is how many people imagine investing in securities. Normally, this has little to do with reality. Hopefully it will remain the exception for you to buy a share and sell it again days or weeks later.

Because those who act quickly and a lot produce one thing above all else: costs. When buying and selling, fees are due, which first have to be recovered from the performance of the share or a fund.

If you invest in a structured and broad manner, you don’t have to constantly get in and out of shares.

Make your money work for you. This phrase best describes what compound interest means for your investment. It is the lever with which you can exploit the full potential.

The idea behind it is relatively simple: you reinvest your profits or interest in order to generate further income. So you add your winnings to the capital employed to give you the chance of bigger returns. With funds, reinvesting usually happens automatically, so you don’t have to do anything yourself.

Compound interest is one of the most important mechanisms of capital accumulation. When asked what the strongest force in the universe was, Albert Einstein replied: “That’s compound interest!” It pays off for you, especially in the long term. So use this effect to significantly increase your assets.

You should manage your investment with a steady hand. But that doesn’t mean you can neglect your portfolio. Even if you keep an eye on the financial market to some extent, signs can change. You should not oversleep such developments.

It is better if you talk to your investment advisor regularly – ideally at least once a year – about your portfolio and make adjustments if necessary.

You have the feeling that there is still so much to learn and therefore do not dare to approach stocks? Have the courage, because every day without an investment is a day without a chance of a return.

You don’t have to be a stock exchange specialist to enter the capital market. This is exactly why there are funds and professionals who take care of the management. And once you’re there – for example with a fund savings plan – investing in the capital market is completely normal for you.