Do you want to start investing in stocks, bonds, but don’t know how? Find step-by-step instructions right here!
In this article, we will give some advice to a beginner on how to start investing and what to exactly pay attention to.
- Decide on the amount you want or can start out your first investments with. Then write down your goals that you want to reach with those investments and add your rules (eg if the market starts to fall, you will not sell the shares in panic, but you’ll wait for the market to recover, etc.)
- The first thing you’ll have to do is to create an investment account. Currently, both Swedbank and LHV Pank offer to investment in Baltic market shares (Estonia, Latvia, Lithuania) without service fees. In both environments, opening an account is free and does not charge any extra service fees. NB! In the LHV library, you can read almost every possible investment-related book free of charge.
- If you have a Mac or iphone then you have a stocks app. As a novice investor, I encourage you to start using it. First of all, I recommend adding all the companies of interest that are listed on the stock exchange and then to pay attention to the shares of Estonian companies on the Baltic stock exchange (you can find a list of companies on either LHV or Nasdaq Tallinn)
- While researching which companies are listed on the Estonian stock exchange and taking a look at the rest of the world, we recommend that you also create an account on finance.yahoo.com so that you can keep up to date with what is happening in the world. In the Yahoo environment, it is also possible to create your own lists of companies (eg “currently in the portfolio”, “potential future investment”) or keep track of a list that has already been made by someone else. The idea is that you can easily filter out news about companies you are interested in.
- Now that all the necessary preparatory steps have been taken, it is worth looking around all the pages and just to start to explore. However, if you feel that you are still confused and don’t understand anything, look for Jaak Roosaar’s book “A Textbook for Becoming Rich with Shares”, because in this awesome book, all the terms are very simply explained and even examples are added to help you understand everything more easily.
Here are some pages that have helped us along the (investment) way:
aripaev.ee (Ebsters also have a discount for reading)
Author: Kaarel Keskküla
Editor: Tea Teesalu
Translator: Marlen Kuusk