1. First of all, be clear on the goal of the investment. What do we want to achieve and within how long? And, related to this, what risk am I prepared to take in order to achieve it?
2. And of course, what capital should I invest? To decide this, you must understand that investing in the stock exchange is uncertain, so the recommendation is to always invest money that you are not going to need in the short term and to not invest your personal or family wealth. Another recommendation is that, if you are starting to invest in the stock exchange, it is better to invest with small amounts.
3. Choose the broker wisely. The best one will suit how you trade: adjusted fees, powerful information tools, option to carry out conditioned banking and setting a stop loss, etc.
4. Being informed is crucial. Obviously, when investing in the stock exchange you need to be informed on the companies you are going to invest in. It is recommended to read about the new products that they are going to launch, markets they operate in, profit forecast, risks…
5. How many portfolio holdings are recommended? It is estimated that a portfolio between 4 and 6 holdings is enough to monitor the companies and their respective sectors.