Today we are increasingly aware of the fact that to secure a future it is important to invest a part of your money in something that is safe. There are several possibilities to invest your money today . In this first phase it is advisable first of all to understand exactly what your needs are.
Today we are increasingly aware of the fact that to secure a future it is important to invest a part of your money in something that is safe. There are several possibilities to invest your money today . In this first phase it is advisable first of all to understand exactly what your needs are.
Investing in 5G stocks
Recently, we hear more and more about the 5G network (read our article How to make money with the 5G network ). The reasons are different, there are those who speak of it in a positive way given the importance of its potential and there are also those who speak of it in a negative way due to possible damage to health or for the protection of privacy.
One fact is certain that 5G will totally revolutionize our way of life because in addition to increasing the speed of the internet, it will allow the so-called IoT which is the acronym for Internet of Thing which in Italian has been translated as “Internet of things”. This means that everything will be connected to the internet such as cars and roads.
Then the attention shifted to another aspect, namely the possibility of being able to take advantage of it by investing your own money.
This is a business that could prove to be very profitable in the near future. Now what is most important is understanding which stocks to buy.
Of course, telecom companies are still in the early stages of building 5G networks, but there are interesting stocks from companies that are already testing .
For example, we are talking about American companies such as Qualcomm (QCOM) which has made agreements with the Apple company regarding the distribution of 5G chips . Then there is the AT&T (T) company, Verizon Communications (VZ) and also the Xilinx (XLNX) company. Not to mention Chinese companies like Huawei , Japanese and South Korean companies like Samsung . Among the many names we also find Nokia and Ericsson .
Thanks to Tim Italy conquers the European primacy. The company together with Ericsson and Qualcomm have made a stable connection that is capable of exceeding the speed of 2 Gb per second, taking advantage of the frequencies of 26 GHz on the 5G network.
This can only make us understand that whoever buys the shares of companies that deal with 5G is investing in the future.
Investing in cryptocurrencies
Is it still worth investing in the cryptocurrency market in 2020 ? Which assets to aim for?
As everyone will already know, the cryptocurrency market is very volatile and this means greater risk but at the same time also good profits if the investment is successful.
For this reason we recommend that you first understand the characteristics of that particular cryptocurrency, the financial market and then move on to the actual investment.
You must understand if it is more convenient for you to make a short-term or long-term investment and above all understand which cryptocurrency is best to buy at that moment.
According to the latest studies carried out by analysts, the cryptocurrency market should go from bearish to bullish . This could be a reason to invest in cryptocurrencies.
In 2021 we still find Bitcoin and Ethereum at the top, which are part of those cryptocurrencies that allow you to make a safe and profitable investment.
Moreover, in May 2020 the Bitcoin halving will take place , i.e. the miners ‘ compensation will be halved and will go from 12.5 to 6.25. This means that the price of the bitcoin market could undergo a sharp rise, experts predict that by the end of the year it will reach 2 million dollars .
Today there are roughly just over 18 million Bitcoins and the maximum limit set is 21 million. Two more halvings took place in both 2012 and 2016 . This led, both times, to a large increase in the price of Bitcoin. However, it should not be assumed that it will happen again this time.
How to buy cryptocurrencies
When you hear about cryptocurrency investments, the first thing that comes to mind is: “ Where can you buy them in total safety? “
You can contact exchange services or you can make the purchase directly, as we will see later.
To proceed with the purchase of cryptocurrencies on exchange platforms it is necessary to open an account. The procedure is simple, once activated you can start your purchases, but not before having deposited your money on the platform.
Today, compared to the past, you are lucky enough to be able to make purchases with much more security, for example you can use the credit card that are part of the Visa and Mastercard circuit and enable it for 3D Secure . Every time you buy a cryptocurrency, the protection system will send you a secret code via text message.
All kinds of currencies and cryptocurrencies can be exchanged on these exchanges . Depending on the type of platform you will find yourself dealing with different fees , of course we advise you to find the most convenient ones. Also, before proceeding with purchases, check the official price of the cryptocurrency .
Cryptocurrencies can be bought both directly on the platform and directly from other users.
In Italy there are several such as there are in Rome, Florence and Milan. These doors allow you to carry out the operations in a practical and fast way. Just insert your credit card or cash to buy cryptocurrencies . Furthermore, from the counter you can manage your wallet and therefore you can do various operations such as changing your digital currencies into a FIAT currency.
Online trading on cryptocurrencies
Another well-known way to invest in cryptocurrencies but without actually owning them is Online Trading .
It is a system highly appreciated by most investors, who among the various assets prefer to invest in cryptocurrencies.
Among the different ways of investing it is the one that presents the best opportunities to diversify your portfolio .
Among other things, it allows you to obtain profits in both the short and medium-long term .
To trade online safely and profitably, it is necessary to turn to trading platforms that naturally allow you to invest in cryptocurrencies as well. In Italy brokers are regulated by CONSOB and they also possess the certification issued by CySEC which authorizes them to operate in Europe.
If you are a beginner trader you can start by opening the Demo Account , which is the account that provides a platform that allows you to make simulated investments. This means that virtual money is used instead of your money.
Another alternative is offered by the eToro Social Trading platform which, thanks to the presence of Popular Investors , beginner traders can follow and copy professional traders. This is possible thanks to the presence of the Copy Trader system .
Do you want to invest in Cryptocurrencies with a virtual € 100.00 Demo Account?
CFD trading
Trading online, specifically CFD ( Contract for Difference ) trading, could be safer and more convenient than buying them and keeping them in the digital wallet.
Exactly CFD trading allows you to invest on the trend of the cryptocurrency , that is, you can proceed with the purchase if you think that the digital currency will undergo a rise or you can proceed with the sale if you think it will suffer a decline.
As we can see, there are many more opportunities to make a profit. Furthermore, thanks to the presence of financial leverage, the trader can invest even only a small part of the entire value of the transaction. Being a multiplier both profits and losses are greater.
For this reason we advise you to act with caution before starting your operations.
Bitcoin Futures Stocks
In recent years, for those who want to invest in cryptocurrencies and in particular on Bitcoin, they have the opportunity to do so by exchanging Futures Securities .
These are contracts that take place on regulated markets where both the buyer and the seller exchange a certain value of the asset at a certain price.
Also in this case, like CFDs , we invest in the price trend of the cryptocurrency, but with the difference that these close on a set deadline.
At the very end of 2019, bitcoin was launched on Wall Street , at the NYSE which created the first Future contract.
For the financial markets it was a big shift because it put Bitcoin on the same level as gold. We read that these are physical replication contracts , that is, that the underlying asset, unlike CFDs , is actually purchased.
Tips for novice traders
The cryptocurrency market is very volatile and therefore if you are starting out it is good to invest only the money that at that moment you can afford to lose.
We tell you this because unfortunately there are those who get enthusiastic and therefore invest a large part of their capital, but given their lack of experience they lose everything even with a single investment.
Volatility shouldn’t just be seen as a downside because professional traders are able to make money by using swings to their advantage.
Online trading is not a game , it is good to practice it before starting your first trade. As it was said previously, you can use the demo account which gives you the opportunity to make any type of investment without running any type of risk since virtual money is invested.
In this way you have the opportunity to study the financial market, the cryptocurrencies of your interest and the trading strategies.
Outside of the type of investment you want to make, it is essential to choose regulated platforms, be it exchanges or brokers . Only in this way can you avoid running into some scam.
To be able to make money with online trading you need to be more than just a trader, you have to aim to become a professional. Don’t believe those who tell you that you can make profits quickly and easily.
Investing in legal cannabis
As of January 13, it is possible to invest in legal cannabis . We have heard a lot about this market in this last period and it seems that we have reached the turning point.
Precisely on January 13 , the first European ETF on legal cannabis was launched on Deutsche Boerse XETRA . This was done by the Canadian fund Purpose Investments and the ETF is called Medical Cannabis and Wellness UCITS ETF (CBSX) .
It is an ever-growing market, and it has been estimated that this ETF will most likely grow from its current $ 11bn to $ 50bn.
It is a very diversified and transparent basket of stocks. There are companies that follow the entire production, linked to legal cannabis, cannabidiol and hemp products, which goes from producers to suppliers. For example, there is Charlotte’s Web and GW Pharmaceuticals .
The ETF complies with the UCITS regulation which is the acronym of Undertakings for the Collective Investment in Transferable Securities, which in Italian stands for UCITS (Organisms for Collective Investment in Transferable Securities). Therefore the investments are valid at the European level .
This indicates that, at the moment only in Italy, the United Kingdom and Ireland, it is possible to invest in legal cannabis.
The legal cannabis market, specifically the therapeutic one, is strongly expanding and has enormous growth potential.
What are ETFs ?
For the uninitiated, ETFs ( Exchange Traded Funds ) can be traded on the stock exchange as if they were shares.
They are specific passively managed investment funds that replicate the benchmark index.
When you go ahead with the purchase of an ETF it is as if you are buying a basket of stocks together with other investors.
With ETFs you have the opportunity to diversify your funds and consequently you can reduce the risks. Another good thing is that the negotiations are transparent, flexible and happen in real time.
The legal cannabis market
According to the latest events, investing in the legal cannabis market proves to be a great opportunity not to be missed .
Experts predict that in the near future the market price will quadruple, as previously mentioned at the moment the value is around 11 billion and it is expected that in ten years this will reach 50 billion and even more.
For those who have to do with the financial sector, they know that timing is essential to be able to make excellent investments.
Investors must be able to identify well in advance which assets will be the most profitable in the future. This is true whether you are making investments in the short term or in the medium to long term.
Many will be wondering if it is really worthwhile to invest in cannabis. We can tell you that according to the latest data from ETFs listed in the USA, for example, they haven’t been doing very well lately. This, however, should not discourage you because it is normal that the markets can suffer collapses which, however, are always accompanied by recovery .
Online trading, where to invest in 2021?
Online trading still remains an excellent solution for those who want to invest in the financial markets . Given the recent studies for 2020 globally there will be no recession, indeed there will even be growth.
They have also identified assets in which to invest that would prove to be more convenient. For example currency pairs ( Forex market ), commodities and government bonds.
Forex market
The Forex market is also called the foreign exchange market. It is the largest and most liquid in the world, think that about 5 trillion dollars are traded every day. It has the characteristic of being open 24 hours a day, five days a week.
Specifically it is a decentralized market and this means that the currency pairs are traded in whatever market is open at that particular moment.
With the Forex market, the gains derive from the purchase of one currency and at the same time from the sale of the other currency and therefore you invest in the rise or fall of the price.
Forex Trading is a widely used system of traders, you can make investments on a wide range of currency pairs and if you use brokers like eToro you get additional benefits.
Raw material
Even the raw materials prove to be the winning asset. If we only think of commodities such as gold , oil , diamonds and silver, for example, we understand that they are timeless assets.
There are even those who suggest investing in certain indices , i.e. those that contain the main futures on commodities worldwide.
Government bonds
When you hear about Government Bonds, you are referring to public debt securities such as Treasury Bills , Bonds , Bunds and Gilts .
These are bonds, credit / debt securities.
Exactly with online trading, specifically with CFD trading you can buy and sell stocks based on the price trend.
This type of investment is also very interesting and profitable, the important thing is to do it seriously and diligently.
Investing in Gold
Most investors have always thought of gold as a safe haven asset .
In fact, it falls into that category of material assets that allow you to safeguard your savings thanks to the fact that they have the characteristic of retaining their value over time.
For example, if an economic and financial crisis were to occur, the value of gold would remain unchanged.
For this reason, many people still continue to buy gold or trade gold CFDs today . Now we will explain to you exactly how to invest your money in this precious asset.
There are several opportunities that are divided between direct purchase and indirect investment.
Buy gold bars
For those who intend to make a direct investment of gold this is the most common form.
When you hear about gold bars, you don’t have to think about exorbitant measures. On the market they are found starting from one gram, these are usually used as a gift for example for baptisms.
For those who intend to make a real investment, it is usually recommended to buy bars of at least 100 grams, in particular because they are easier to resell.
The bars, for safety reasons, all have a serial number . They are also classified according to the purity of gold and its weight and the value also depends on the price of the moment .
Generally we proceed with the purchase when the price of gold is falling and then resell it when the price undergoes a rise.
Of course, the profit comes from the difference between the purchase price and the sale price.
Gold bars can only be bought from traders who are authorized to sell investment gold . These can be for example banks or even jewelers, but today they can also be bought online .
Once purchased, bars can be stored anywhere you think they can be safe. We advise you not to keep them at home which, as we know, is a very vulnerable place. Instead, it is preferable to keep them in a deposit box in the bank , but being a paid service, it is up to you to decide if it is convenient.
Investing in gold ETFs and mutual funds
For those who want to avoid owning physical gold can consider the possibility of buying financial securities in gold , in this way it is as if it were securitized .
Specifically, you go to invest in one of the gold-traded funds. The ETF replicate the benchmark to which they refer, in this case it is precisely the gold.
Therefore, when you invest in this type of funds your task will be to identify the right trend in the price of physical gold, or if it will go up or down.
In addition, gold, like oil, is a commodity that is quoted in dollars on the stock exchange . This means that when the dollar goes up or down, the value of gold moves in the opposite direction. For example, if the dollar goes down it will take more dollars to buy the same amount of gold.
The influence of the movement of the EUR / USD applies to both ETF investment and physical gold investment. But be careful if you make long-term investments this will not have to worry you because it has been found that it does not affect the final return. Therefore, only when making short-term investments pay attention to the EUR / USD exchange rate .
It should be added that there are ET Fs that already take into account the trend in the price of gold in Euro , so you don’t have to worry about anything because the change in the EUR / USD exchange rate is already included within the financial security. .
Invest in gold with Futures
When we talk about Futures we are indicating financial contracts on the stock exchange that allow you to buy or sell a certain quantity of an asset, in this case of gold, by a specific date in the future. They have the characteristic of being derivative , ie their value originates from an underlying asset which in our case is gold.
There are those who prefer Futures to traditional equity investments because usually the commissions and margin requirements are lower.
Due to the volatility futures are not suitable for novice investors it is good to first get a little experience on the markets, they are very powerful financial instruments.
You have the option to ” go long ” if you think the gold price goes up or you also have the option to ” go short ” if you think the gold price goes down.
Furthermore, like all derivative instruments, you have the option of using financial leverage that allows you to multiply your gains, but in the event of a negative outcome, even your losses.
CFD trading in gold
The CFD ( Contract for Difference ) as ETFs are derivatives contracts, but with the difference that they do not expire. You can invest in gold without actually owning it.
These are exactly financial instruments where their value depends on the performance of an underlying financial asset.
With CFD trading you can trade in gold by focusing on the rise or fall of its price , with the advantage of being able to use the leverage that allows you to invest even a small percentage of the entire value of the operation. Moreover, it has the function of multiplying the profit both in the event of a negative outcome and in the case of a positive outcome.
You can invest in gold indirectly, for example by trading securities belonging to specialized companies, for example in the mining sector.
Buying and investing in oil
For those looking for an excellent investment, you will certainly have heard of oil . Thanks to the presence of platforms that deal with online trading, today it is possible to negotiate on the trend of the oil price . Therefore it is not necessary to actually own barrels of oil.
On the stock exchange, oil is present in the form of barrels of crude oil and therefore we do not speculate on oil companies, for example.
You can decide to invest in the oil sector in various ways, one of these, the most used, is CFD trading which allows you to make long-term investments and short-term investments. It all depends on your forecast, that is, if you think that in the future the price of oil will go up then you will have to buy ( Long Trade ) and if you think that in the future the price of oil will go down then you will have to sell ( Short Trade ).
Oil has always aroused strong interest among investors due to the high volatility which can also be an opportunity for excellent gains in case of short-term investments . Only professional traders who have more experience in recognizing in advance a very sudden change in the market trend can usually benefit from this system .
For those who do not have much experience, they can opt for an interesting long-term investment because it has proven to be particularly safe.
It is advisable to take a buying position when the price of oil is low. Usually, as happens in all financial markets, after a fall in the price there is always a rise. This allows investors to make good profits.
The only way to decide if it is more advantageous to invest in the short term or in the long term is to study the financial market well, only in this way can the new trend be determined in advance.
Investing in Diamonds
In recent years, the risk in the markets has increased and as a result people have started looking for investment alternatives.
Diamonds are a raw material, like gold and silver, where if the market were to suffer a strong crisis, the price tends to increase instead of decreasing.
To invest in diamonds in a concrete and safe way, like gold, you have mainly two ways, that is, you can buy them physically or you can invest in stocks.
It must be said that if you buy diamonds , unlike gold, you can keep them at home because they take up less space. However, when it comes to security, it is always good to keep them in a deposit box in the bank. You can buy them in specialized centers or online.
The choice of diamonds is not exactly easy, to make a good investment you need the eye of an expert.
You have to be able to distinguish the cut, the purity, the color and the carat weight. Furthermore, there are different types, and it is therefore important to understand which one involves the best investment.
Among other things, you have to pay attention to certification . Each diamond must have it because only in this way can you have more guarantees. For example, there is the GIA certification which is issued by the American Gemological Institute which is the best known and most controlled in the world.
Of course, the purchase of diamonds, in addition to bringing advantages, has its risks. One could be the difficulty of selling it. Your goal logically is to get more profit from the purchase price so you have to keep in mind that you may have to deal with, for example, companies that buy diamonds but do not pay well. Or you can turn to retailers or auction houses.
For this reason we advise you to evaluate the diamonds in detail before proceeding with the purchase and above all, if one day you want to resell them, evaluate their future value.
Investing with stocks in diamonds
If you have little cash, you have the opportunity to invest in shares by buying securities belonging to companies belonging to companies that trade diamonds .
You can make this type of investment through online trading, exactly let’s talk about CFD trading . It is a system that allows you to speculate on the price trend. Therefore you can decide to buy and therefore to go long if you believe that the price of the asset will increase or you can decide to sell and therefore to go short if you believe that the price will decrease.
With CFD trading you also have the advantage of being able to use the financial leverage which has the function of multiplying the gains in case you were to close the operations both positively and negatively. Also thanks to the presence of leverage you can open positions that have a very high value with the possibility of investing only a small part of your capital .
CFDs are derivative financial instruments and this means that you are not going to physically buy or sell diamonds, but you will focus on the value that derives from the underlying asset.
To be able to obtain good profits you must be able to put into practice winning trading strategies and above all you must operate on authorized and regulated online platforms.
Online trading is not a game but a serious activity where if you do not invest consciously, the risk of losing your money is very high.
Invest in silver
We used to hear that the best investment is gold. This statement is not wrong, but among the “precious metals” there is also silver .
It is an interesting opportunity that not only allows you to earn but also to diversify your electronic wallet.
We would like to tell you immediately that silver, like gold, is considered a safe haven asset. So if a market crisis or a rise in inflation should occur, your investments are safe.
In terms of costs, compared to gold, silver is cheaper and therefore more accessible.
It is a very precious metal where the demand is constant but the quantity is scarce. This means that the supply is low and this certainly affects the value of the silver.
Still like gold, it has the characteristic of being subject to strong volatility and this could be an excellent source of greater earnings if managed in the right way.
The price is influenced by several factors that we are now going to list.
We have seen that one of the elements is the relationship between supply and demand , for example if there is a lot of demand this leads to a sharp rise in prices.
Silver is used in particular in the technology sector and this is one of the cases that naturally leads to an increase in demand and consequently in the price.
On the other hand, when the recovery of scrap metal occurs, this leads to an increase in supply and, unlike the example above, the price decreases.
Even the ‘ state of the economic market is very important, as government policies . Furthermore, being listed on the stock exchange in US dollars, the price of silver is also influenced by the currency trend.
Analysts have noted a correlation between the evolution of gold and that of silver ( Gold Silver Ratio ), ie when the price of gold increases or decreases, silver also behaves in the same way.
It is time to invest in silver
For 2020, the outlook for silver is positive. Various studies have speculated that different situations will lead to an increase in value, there are even those who think that the price will reach 22 dollars .
In particular it is expected that in the future due to the increase in electric and solar vehicles using silver it will lead to a sharp increase in demand .
Invest in silver bars and coins
In addition to gold bars and coins there are also silver ones. You can buy them and keep them in safe deposit boxes at the bank.
We cannot confirm with certainty that once bought they are easy to resell. This will vary for example according to the market trend at that particular moment.
Furthermore, the price of the bars varies according to specific characteristics such as the certification that certifies their quality, then you must pay attention to the purity, the reference currency for the exchange, the market value and the commissions and costs.
As far as coins are concerned, we can say that in addition to investors, collectors are also interested.
In the market there is the half-dollar Franklin ; Kennedy ‘s half dollar and Walking Liberty’s half dollar .
In this case you must be absolutely careful to choose valuable coins, otherwise you risk finding poor quality items.
Online trading on silver
You can invest in silver in several ways and one of them is online trading .
We remind you, however, that you can buy silver in the form of bars and bullion coins . Let’s say that this system is used by those who have a capital that allows them to also face the expenses for the conservation of the asset. Moreover, reselling them is not exactly that simple, it has the characteristic of not being a very liquid market and therefore there could be an increase in transition costs.
Going back to the financial sector one way to trade silver is through an ETF ( Exchange Traded Fund ). Basically it is an investment fund where the transaction costs are very low. This is a way to get private investors who don’t have a lot of money to expose on the silver market.
Then there is also the possibility of trading through CFD trading . Specifically, CFDs ( Contract for Difference ) are derivative and leveraged products. Like ETFs, transactions are low cost and fast.
With this system it is possible to earn both if the price rises and in this case you must have proceeded with the purchase and if the price falls and in this case you must have proceeded with the sale . Furthermore, with leverage it is possible to use only a percentage of your capital by exposing yourself to the market by opening positions that have a higher value.
In addition to investing directly in silver, the trader has the possibility to buy and sell shares belonging to, for example, mining industries. Of course their value depends on the value of the silver.
These are all systems that, if done with conscience, can lead to obtaining good profits, it is up to you to choose the one that is most congenial to your way of operating and your capital.
How to invest with Real Estate Crowdfunding
We have often heard the word crowdfunding mentioned in cases where it was necessary to raise funds to start a project that could have belonged to a private individual or a company. This system was used for example to create new digital currencies, i.e. cryptocurrencies such as dogecoin.
Then in recent years it has become part of real estate and this has revolutionized the concept of ” real estate investment “.
The crowdfunding real estate is mainly divided into two types:
lending : the investor by paying part of the money becomes the owner of a credit right, does not become a shareholder;
equity : the investor, by paying part of his money, gets hold of shares in the company.
Based on the type of real estate crowdfunding you want to do, you must contact the corresponding platform.
You should only choose authorized platforms. The equity is controlled by CONSOB, instead lending are controlled by the Bank of Italy.
Real estate lending crowdfunding
With real estate lending crowdfunding you go to invest in a real estate project of a company and whoever offers money acquires credit rights. Therefore, at a fixed date, he gets back the loaned capital plus the interest rate.
With lending , profits can be said to occur immediately because once the term has expired, the money is sent.
Real estate equity crowdfunding
With equity real estate crowdfunding you always go to invest in a project, but in this case you become the owner of a part of the company that is preparing for the purchase of a property, for example.
With equity , unlike lending , profits are received in a much longer time. The procedure is quite complex because before arriving at the compensation, various procedures are put in place such as the liquidation of the company and the closing balance sheet.
Investing in stocks
For those looking for a safe and profitable short or long term investment, you can try to bet your money on trading shares .
You can start with online trading which allows you to profit both when the share price falls and when it rises.
To trade with confidence, the first thing you need to do is find a broker that is reliable and therefore regulated by competent financial authorities. It must also offer the possibility of trading shares by offering favorable conditions.
To operate it is necessary to create a personal account that once activated you must deposit a minimum amount if you want to start immediately with the real account. Instead, for those who are a beginner trader, they can instead start by opening the demo account that allows you to invest on virtual platforms.
Each broker offers different amounts of shares, it is up to you to choose the one you think is most convenient. Before starting the trade it is good to do in-depth research on companies listed on the stock exchange and it is also important to study the trend of the financial market.
We recommend that you invest in these stocks that we personally select:
Amazon shares ;
Tesla shares ;
Juventus shares ;
Apple shares ;
Google shares ;
Ebay shares ;
Enel shares ;
Coca Cola shares ;
BMW shares ;
Campari shares ;
Mediolanum Banca shares ;
Alibaba shares .
Once you have chosen the action you will have to decide if it is more convenient to buy (go Long ) and then aim for the upside or sell (go Short ) and then aim for the downside. The gain comes from the difference between the opening and closing prices.
Then the next step is to establish the amount , we recommend starting with small amounts and then increasing as you get more experience and feel more confident.
Trading CFDs has its advantages because CFDs (Contract for Difference) are invested in the underlying asset and therefore do not really hold the stock. Furthermore, you can take advantage of the leverage , which means that there is no need to cover the entire value of the operation to start the trade.
Therefore, it is possible to open larger positions that could not have been done with one’s own capital. Pay attention to profit and loss because both in case of positive and negative outcome will be multiplied.
In these cases it is good to learn how to manage risk in order to know how to manage any type of situation that may occur during trading operations with CFDs.
Investing in stocks with stock market indices
For those who want to invest in shares, they can do so using stock market indices which are nothing more than baskets of shares. In this way, you are not going to invest in a single share but in the trend of the market in general.
The value of the index is given by the weighted average of all the prices of the securities present in that particular basket.
You can always make the investment through CFD trading which among the various underlying assets there are also indices.
The most popular are FTSE MIB (Italy), Dow Jones (USA), Nikkei 225 (Japan), FTSE 100 (UK), DAX 30 (Germany), S&P 500 (USA) and CAC 40 (France).
Buy stocks
Buying stocks is very different from trading CFDs.
When you buy a share, you get hold of the share of the capital of a company which varies according to the amount paid by you.
This gives the right to receive a portion of dividends , or profits generated by the company. In addition, the owners of the shares can participate in company meetings which, based on the share held, have more or less the right to vote.
Profit for a shareholder comes from selling the stock when its value has risen or from dividends.
It does not work like CFD trading which allows you to invest in both the rise and fall of the price, in this case you only earn when the price increases .
