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How To Start Investing

October 13, 2020
4 min
How To Start Investing
Beginner
You will learn

    In order to start investing consciously, it is not enough to be a good saver. In fact, unlike saving money, investing aims to put your money to good use, i.e. to generate a return on the value you have by buying a range of financial products. 

    Let Go To Take Charge

    Investing is a path that starts from capital, even very small capital, and is built with strategy and rationality, stemming the emotional component that can cloud our awareness. 

    We often let fate guide our financial flows without mastering them. We are frightened by the responsibility of taking charge of them or distracted by the tasks of daily life. Fear, anxiety and haste are our worst enemies.

    This approach stems in most cases from a conflictual relationship with money. Evidence of this is the tension and stress we feel when we are surprised by unforeseen expenses (such as bills, fines, etc.). The feeling that accompanies us is that of “never having enough” and although we work with constancy and commitment, our economic situation does not seem to improve.

    It is not hasty to think that old habits and long-standing beliefs inherited from our families aggravate the situation. The confidence given by their past experience may lead us to choose investments that no longer make sense on the contemporary scene. 

    So, why don’t we start from scratch? Let’s begin.

    What variables become functional when we start investing?

    Moreover, when we talk about investments, one of the variables to take into account is certainly time. It is important to assess the period in which we can keep our capital “immobilised”, provided that it does not represent a substantial part of our finances, nor all our liquidity.

    start investing

    Risk is the other fundamental element that goes hand in hand with the concept of return. In principle, the higher the risk, the higher the probability of obtaining high returns, as well as of losing all our capital.

    Memo

    The return is the profit margin that you are able to obtain in relation to the capital invested, over a given period of time.


    Keeping our nerve in the face of market fluctuations is by no means easy. The panic effect is typical when you suddenly see the value of your investment plummet and can lead you to abandon your choices for the wrong reasons. 

    Which direction to take in order to start investing today?

    The aim, however, is not to train yourself to go over every limit or blindly follow market trends. We need to learn to “look from above“, to be familiar with the financial markets and understand what is happening in the world around us. A cold and lucid awareness is the only way to build a personal method based on numbers, analysis and practice.

    This is why knowing about money and the tools available in the world of investments is the first step to take in order to improve your financial situation, observing the markets on a longer time scale and not only based on contingent events.

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