If you have money saved there are different options to obtain returns, but one of the most popular is investing in the stock market. For this process to be a success, you first have to configure your portfolio of stocks , and this is not easy, since the final result must adapt both to your investor profile and to the moment of the market.
Do you want to know how to do it? So keep reading, in today’s article we are going to explain everything you need to know to start investing successfully.
What is a portfolio of stocks?
Let’s start at the beginning, to create your portfolio you must first understand well what it is about. We start from the basis that a share is a participation in the capital stock of a company . As normal is to buy several shares of different companies, what is formed is a portfolio.
That is, in a very simple way we can define the stock portfolio as all those shares we own .
Why invest in stocks?
In the case of the stock market, the risk may be a little higher, since the markets are very volatile . However, it is proven that investing in the stock market is the most profitable in the long term . So if you create a good portfolio of stocks and have long-term profitability goals, you can get more profits with the stock than with other investments.
What is the value of shares and what does the market value of a share imply?
The value of a share is the price it has on the stock market at a certain time, and this is calculated from supply and demand .
The market value determines what the value of some shares is by multiplying their value by the number of shares that are circulating in the market.
What types of actions are there?
- Defensive : they are issued by low-risk companies and therefore offer a fairly stable performance.
- Offensive : they come from companies with much more volatile results, such as oil companies or technology companies, so their price can rise or fall quickly.
- Preferential : these are titles that can eventually pay dividends.
- Ordinary : they do not necessarily distribute dividends, but they give the right to participate in the General Meeting of Members.
- Above par : they are those that have a price that is higher than their nominal value.
- At par : when the nominal value is equal to the market value.
- Below par : the price is below the nominal value.
How to create a portfolio of stocks and keep track of it?
The first thing is to define your profile as an investor by determining the level of risk you can assume and the profitability you want to obtain . This is conditioned by factors such as your age and your wealth.
Then you must establish the objectives that you pursue with the investment . There are those who seek to obtain maximum profitability and those who prefer to preserve their assets and see it grow little by little.
You can then start creating your portfolio based on your profile and your goals . This can be very different from person to person, but diversification is essential . This implies buying shares of companies belonging to different sectors.
Keep in mind that the portfolio is not something static, since what is profitable today may not be tomorrow. It must be adapted to the market moment . Lastly, don’t lose sight of costs . Taxation and commissions are going to take part of your profits, so an investment that seemed good to you in the beginning may not be so profitable in the end.
As you have just seen, there are many variables that must be taken into account when creating a portfolio of stocks.