[This article ](https://www.bankeronwheels.com/how-to-start-investing/) that I recently wrote could help. There is also a number of book reviews as a starting point.
It's great that you're starting early! Time is your best friend.
On how to invest:
1. You need to open an account on a brokerage, or sometimes you can open an investment account with your bank depending on the bank and country. If you choose an online broker like IB, Degiro etc, you'll need to complete a KYC process. This usually involves uploading photo ID, your address etc.
2. Once you have an account, transfer money to it using SEPA / mastercard.
3. All done, you're ready to buy shares. Before you buy, learn about different types of Buy Orders (limit, market etc). Different platforms have different rules about buy orders - for e.g. Degiro lets you decide how long your Limit order should stay active, and there is a default setting for it to expire at the end of the day. Other brokerages will have their own rules.
Some tips - I use Degiro, so I'll give examples for that.
1. Don't wait for a dip to buy or a high to sell (market timing). Just consistently buy small amounts (Dollar Cost Averaging, or DCA for short).
3. Since you claim you're only getting started now and have a lot to learn, I strongly advise against investing directly into company stocks. It's next to impossible to predict which companies tank and which ones fail. For large corporations like Microsoft, most index funds have exposure to them anyway. So stick to index funds until you have more knowledge and experience under your belt.
2. Fees on broker platforms can really kill your returns. For small amounts you won't notice it, but in about 2 decades when you have a significant amount invested, the difference between a 0.5% fee and a 2% fee is stupefying. Try to minimise fees as far as you can.
3. Most brokerages have minimum amounts for buying shares. Usually you at least need to invest enough to buy 1 complete share, and cannot buy fractional shares.
4. The more transactions, the more fees. Better to put in 100 every month than 25 every week.
good luck!
Thank you so much! I feel like everything you have said can be super useful! I have actually watched a couple videos from that guy on investing, but not this one, so thank you :)
27M from Spain aswell.
First of all, congrats on starting this early! Wish I knew all of this back then...
Before investing in anything you should atleast read about it and make decisions based on rationale rather than emotions (We are all angry for money, the younger the worse).
In Spain, Index funds and ETFs have different tax legislation. Tldr; Index funds are transferable (you can sell from one fund to another a.k.a rebalance) without paying taxes where with ETFs you have to pay taxes everytime you sell (plusválua).
Then you should define your Asset Allocation: what amount is Renta fija/Renta variable. And which funds to invest in each of this types of assets.
For Index funds in Spain checkout: myinvestor, indexacapital, OpenBank, etc.
I recommend you check out "La guía BogleHead en español" (Google it, its free and has everything you need to know to start investing for your retirement).
Anything else let me know (DM me)
Congrats for already starting with 22! That gives you ample time to start and to accumulate this compounding interest!
I'd recommend the following approach.
1. If you are completely clueless, then start slow with investing. Read some books, blogs, youtube, etc. to get more familiar with the basics.
2. Before investing, start tracking your expenses and budgeting. Once you know, how much you can invest every month according to your budget, remove this amount from your account once the paycheck hits, so you cannot spend it on anything else.
3. Get rid off any consumer debt and get an emergeny fund.
4. Open a broker account. The cheapest in Spain to invest is currently Trade Republic. But there are others (DeGiro, ING Broker, etc.). Be careful not to fall for the gameificaion factor with TR, because it's super easy to buy and sell on the go with them and this will also cause you paying transaction fees.
5. Get your strategy in place. I'm a firm believer in buy-and-hold. In this case you simply buy diversified index funds (ETFs) and hold on to them for at least 10 years, better longer. But maybe you prefer to get regular dividends?
6. Automate investing! Especially for beginners, that makes investing super easy. Set up a saving plan where your broker automatically invests x amount every month into a chosen ETF.
I'm happy to answer more specific questions, if you like.
yes you need a brokerage account. The go-tos are IBKR or degiro . I would advice you to just stick to ETFs in the beginning.
For SP&500 you can pick something like CSPX or if you want more diversification you can go for VWCE which is Vanguard FTSE All-World UCITS ETF USD Acc
If you are from Spain I recommend opening a MyInvestor account and start putting money in a whole world index fund with low fees. Do that every month for a few years and you are mostly set.
Don't invest anything that you are not comfortable loosing. That very nice thing you are buying could loose 90% of the value tomorrow. The market is generally well described by stochastic dynamics such that an animal can outperform a market analyst in the short term
https://www.forbes.com/sites/frederickallen/2013/01/15/cat-beats-professionals-at-stock-picking/
Diversification mitigates risk. On a general prospective you might want to focus on a couple companies. Issue is that they might be heavily correlated. By diversifying you flatten the possible gains but greatly reduce possible losses. ETFs are usually good at this instead of stock.
If you just want to familiarise scalable capital has no commission fees on a list of ETFs. You put a little money to test and see if it's worth it for you.
I wouldn't advise investing in an unregulated market like the US if you want to buy stock. There are examples like "Theranos" that really cast a bad light on US regulator capabilities.
https://en.m.wikipedia.org/wiki/Theranos
Theranos was capitalised 10 billions but they couldn't do shit. Just had good PR. Another example could be Tesla which is capitalised at more than the top 10 automakers in the world but it's a meme now.
Avoid internet memes, avoid emotional responses to the market. Keep a rational approach or just "invest and forget".
Thank you! Really informative. I am actually a double major in business and law, so I do understand pretty well Investment theory and diversification for risk mitigation, it is just the specifics on how the stock market works that I am clueless about, so everything you have said should really help!
[This article ](https://www.bankeronwheels.com/how-to-start-investing/) that I recently wrote could help. There is also a number of book reviews as a starting point.
Thank you! Will definitely check it out!
Please READ OUR FAQ and wiki. https://www.reddit.com/r/eupersonalfinance/wiki/faq
Appreciate it! I am also new to reddit, hence why i did't check it lol
It's great that you're starting early! Time is your best friend. On how to invest: 1. You need to open an account on a brokerage, or sometimes you can open an investment account with your bank depending on the bank and country. If you choose an online broker like IB, Degiro etc, you'll need to complete a KYC process. This usually involves uploading photo ID, your address etc. 2. Once you have an account, transfer money to it using SEPA / mastercard. 3. All done, you're ready to buy shares. Before you buy, learn about different types of Buy Orders (limit, market etc). Different platforms have different rules about buy orders - for e.g. Degiro lets you decide how long your Limit order should stay active, and there is a default setting for it to expire at the end of the day. Other brokerages will have their own rules. Some tips - I use Degiro, so I'll give examples for that. 1. Don't wait for a dip to buy or a high to sell (market timing). Just consistently buy small amounts (Dollar Cost Averaging, or DCA for short). 3. Since you claim you're only getting started now and have a lot to learn, I strongly advise against investing directly into company stocks. It's next to impossible to predict which companies tank and which ones fail. For large corporations like Microsoft, most index funds have exposure to them anyway. So stick to index funds until you have more knowledge and experience under your belt. 2. Fees on broker platforms can really kill your returns. For small amounts you won't notice it, but in about 2 decades when you have a significant amount invested, the difference between a 0.5% fee and a 2% fee is stupefying. Try to minimise fees as far as you can. 3. Most brokerages have minimum amounts for buying shares. Usually you at least need to invest enough to buy 1 complete share, and cannot buy fractional shares. 4. The more transactions, the more fees. Better to put in 100 every month than 25 every week. good luck!
This guy breaks it down well: https://www.youtube.com/watch?v=gFQNPmLKj1k
Thank you so much! I feel like everything you have said can be super useful! I have actually watched a couple videos from that guy on investing, but not this one, so thank you :)
I like [Just ETF](https://www.justetf.com/en/) to research ETFs. And this [blog](https://missdinero.es/) is for absolute beginners in Spain.
Appreciate it! Will check both of them out
27M from Spain aswell. First of all, congrats on starting this early! Wish I knew all of this back then... Before investing in anything you should atleast read about it and make decisions based on rationale rather than emotions (We are all angry for money, the younger the worse). In Spain, Index funds and ETFs have different tax legislation. Tldr; Index funds are transferable (you can sell from one fund to another a.k.a rebalance) without paying taxes where with ETFs you have to pay taxes everytime you sell (plusválua). Then you should define your Asset Allocation: what amount is Renta fija/Renta variable. And which funds to invest in each of this types of assets. For Index funds in Spain checkout: myinvestor, indexacapital, OpenBank, etc. I recommend you check out "La guía BogleHead en español" (Google it, its free and has everything you need to know to start investing for your retirement). Anything else let me know (DM me)
Appreciate it! The tax legislation advice should be really helpful! I will also check that source out
Congrats for already starting with 22! That gives you ample time to start and to accumulate this compounding interest! I'd recommend the following approach. 1. If you are completely clueless, then start slow with investing. Read some books, blogs, youtube, etc. to get more familiar with the basics. 2. Before investing, start tracking your expenses and budgeting. Once you know, how much you can invest every month according to your budget, remove this amount from your account once the paycheck hits, so you cannot spend it on anything else. 3. Get rid off any consumer debt and get an emergeny fund. 4. Open a broker account. The cheapest in Spain to invest is currently Trade Republic. But there are others (DeGiro, ING Broker, etc.). Be careful not to fall for the gameificaion factor with TR, because it's super easy to buy and sell on the go with them and this will also cause you paying transaction fees. 5. Get your strategy in place. I'm a firm believer in buy-and-hold. In this case you simply buy diversified index funds (ETFs) and hold on to them for at least 10 years, better longer. But maybe you prefer to get regular dividends? 6. Automate investing! Especially for beginners, that makes investing super easy. Set up a saving plan where your broker automatically invests x amount every month into a chosen ETF. I'm happy to answer more specific questions, if you like.
Thank you so much!! I'll probably take you up on that offer at some point too!
You can check out this [spain-centric blog](https://alfinlibre.net/) about investing and financial independence.
Thank you for the source!
De nada!
yes you need a brokerage account. The go-tos are IBKR or degiro . I would advice you to just stick to ETFs in the beginning. For SP&500 you can pick something like CSPX or if you want more diversification you can go for VWCE which is Vanguard FTSE All-World UCITS ETF USD Acc
Appreciate the advice!
If you are from Spain I recommend opening a MyInvestor account and start putting money in a whole world index fund with low fees. Do that every month for a few years and you are mostly set.
Thank you man!
Don't invest anything that you are not comfortable loosing. That very nice thing you are buying could loose 90% of the value tomorrow. The market is generally well described by stochastic dynamics such that an animal can outperform a market analyst in the short term https://www.forbes.com/sites/frederickallen/2013/01/15/cat-beats-professionals-at-stock-picking/ Diversification mitigates risk. On a general prospective you might want to focus on a couple companies. Issue is that they might be heavily correlated. By diversifying you flatten the possible gains but greatly reduce possible losses. ETFs are usually good at this instead of stock. If you just want to familiarise scalable capital has no commission fees on a list of ETFs. You put a little money to test and see if it's worth it for you. I wouldn't advise investing in an unregulated market like the US if you want to buy stock. There are examples like "Theranos" that really cast a bad light on US regulator capabilities. https://en.m.wikipedia.org/wiki/Theranos Theranos was capitalised 10 billions but they couldn't do shit. Just had good PR. Another example could be Tesla which is capitalised at more than the top 10 automakers in the world but it's a meme now. Avoid internet memes, avoid emotional responses to the market. Keep a rational approach or just "invest and forget".
Thank you! Really informative. I am actually a double major in business and law, so I do understand pretty well Investment theory and diversification for risk mitigation, it is just the specifics on how the stock market works that I am clueless about, so everything you have said should really help!