Speak to a financial planner to get the right, personalised advice. If you have a growing family but want to balance it with financial security, consider these options.
Investing in stocks beginners guide how to#
Want more tips on how to invest as a first-timer? Click here. Get started online with these Sanlam investing platforms (or speak to your financial planner): Profitable companies can use their profits to strengthen their business, but they might also give a portion to shareholders as a dividend.You make money when you sell your stock for more than you bought it. Over time, the company you have a share in will hopefully grow and your stock will become more valuable.Markets fluctuate, but always remember that investing is for the long term.” Inflation will also affect your investments. Nicolé Cupido, brand manager at Sanlam Investments, says: “Stay the course. Watching your investment rise and fall can be stressful. Practise investing without the risk before taking the plunge. “Investment platforms often let you try out investing with fake money first,” says Lampen. One such opportunity is pyramid schemes.įor your first investment, it’s easier to have a suggested basket of stocks that should perform well. Be wary of investment opportunities that sound too good to be true – they often are. Online information, like the courses he offers through the Sanlam iTrade Academy, is free. “Spend some time reading and learning,” says Lampen. If something bad happens in one sector, you’ve limited the effect it will have on your investment. Protect your investment by buying stocks from companies with focuses in different areas. Learn more about the benefits of an ETF here. Income you get just for having a share in a profitable company, paid quarterly or annually.Ī type of stock that splits your investment across a collection of stocks from top companies. Sometimes this gives them the right to vote on company issues. Someone who owns at least one share in a certain company. They’re your way of interacting with the stock market and they need to be licensed to do this. The Johannesburg Stock Exchange (JSE) is South Africa’s stock exchange.Ī person or company who buys and sells stocks on your behalf, for a fee. This is a central place where you can buy and sell stocks. When you buy one, or a percentage of one, you’re hoping the company does well and the value of your stock increases. The price of a share is the company’s worth divided by the number of shares it creates. Although they may drop suddenly tomorrow, they tend to grow in the long term Some terms, definedĪ share of a company bought for investment. Time allows your money to grow with the power of compounding interest. But this means you could lose money, especially in the short term. The more you risk, the greater reward you could see. Pro: Your money grows exponentially over time.Ĭon: Investing involves a risk. Goal: Your children’s university education, your retirement, growing your wealth without a specific purpose. Put away money now so you can get more in the future.
Pro: Withdraw when you need to, low risk of losing money.Ĭon: Because you’re less willing to take risks with this money, you won’t be rewarded with as good a rate. Goal: New car, a holiday, an emergency fund. Here are some key differences between the two: Saving
Investing in the stock market isn’t the same as saving. You’re putting your trust in companies that can be affected without warning. Remember that the stock market comes with risks the outcome is never guaranteed.
Most are ‘ordinary people’ who have learnt how to invest for themselves. Last updated on 21st October, 2019 at 10:00 am Is it for me?Īccording to head of Sanlam iTrade, Gerhard Lampen, more than 100 000 people in South Africa invest online in the stock market.