Enter the Capital Market | INCAE

Enter the Capital Market

02 July 2019
Yaroslav Lavrinov

Investing in the capital market is a way to generate income that we all know, however, not many dare to venture into this world, which can achieve the realization of large profits or disappear the capital invested in an instant.

According to Warren Buffet, Investing is the process of making money available in order to receive more money in the future. The main objective of investing is to put money to work in one or more investment vehicles in the hope that the invested capital will grow over time, always considering that every investment has the risk of loss associated with it. If you have seed capital and want to grow it through trading on the stock market, without knowing how to get started, the following article will serve as a starting guide.

Investing in the stock market is the most common way for beginners to gain experience and money. There are many ways to start investing in stocks, such as going to the stock exchange offices in your country or using the so-called online brokers to manage your investments from your computer. Probably for many there is no interest in investing in titles, securities or shares of companies in their native country, and this may be due to lack of market information to advise the investment or simply because they want to put the money to work in one of the most important companies. large and profitable that are part of the SP500. This is the advantage of using online brokersThese allow you to invest your capital in companies listed on the United States stock market.

Within the category of online brokers we can choose between full service brokers and discount brokers. The second category is more popular and is preferable for beginners, given that in certain cases you do not have to pay a fee to use the platform and only a commission is paid when carrying out a transaction to buy and / or sell shares. The same way the initial investment can be lower compared to full service brokers, allowing to open accounts from 1,000 US dollars.

The most popular online brokers are Etrade, however, it only works for American citizens. Secondly, just2trade allows you to create an account even if you are a foreigner, you simply have to pass more personal verification controls.

Finally, the best advice is to inform yourself about the market movement and be aware of the news of the financial world. Before starting with real money, it is possible to use virtual money through a simulation with real-time market data with the market simulator investopedia.com, to gain confidence before putting money on the table.


This article was written by Yaroslav Lavrinov, MBA Global Perspective 2019 student. It was originally published in the INCATRAZ Magazine

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