3 things you need to know to start investing in the stock market

3 things you have to know to start investing in the stock market and not fail in the attemptDo you want to start investing in the stock market?

Congratulations, Investment Academy is the right place.

However, before starting to fully introduce you to the world of investing in the stock market, let me clarify a few ideas. My goal is that you do not end up failing in the attempt. Unfortunately, this is what usually happens to the vast majority of savers who want to start taking advantage of their savings with the bag. In this article I am going to explain 3 things you have to know to start investing in the stock market and not fail in the attempt.

Learning to invest in the stock market requires time and effort

Sorry, but you are not going to learn to invest in the stock market overnight. Not reading a book, not two, not three. Learning on the stock market requires time for theoretical and practical training.

I've always liked to compare the learning curve of investing in a stock market to that of a martial art. The basics can be learned quickly and you'll be punching and kicking and a few simple braces in no time. However, mastering the discipline and becoming a great teacher can take a long time. Therefore, it is important to apply the so-called “filosofía kaizen”Or constant improvement.

You won't get rich quick

Looking for a quick and easy way to get rich without investing a lot of money or effort? So I'm sorry to tell you that the bag is not for you.

It is true that the image that is sold from the media and, it is special, from Hollywood movies, is that of “finance sharks” that multiply their money in a short time based on big hits. Nothing is further from reality.

Without going any further, Warren Buffett, considered by many to be the best investor in history, has obtained an average return of "only" 20% per year. Time and perseverance have been the factors that have made him a living legend of investment and the third richest man in the world.

You have to be very careful. The Internet is littered with so-called experts who promise stratospheric returns in no time. The reality is that they are nothing more than scammers looking for sucker money to fall into their clutches. Don't be one of those nerds. When someone offers you extraordinary returns, escape before it is too late.

Value investing is the most profitable and secure method to invest in the long term

Many people, including myself, started investing with technical analysis. However, technical analysis is not a recommended investment style despite its popularity. The truth is that I do not regret my beginnings, since you learn from mistakes, but I advise you to focus on value investing from the beginning.

Value investing is the safest and most profitable investment style in the long term. Investors and mutual funds that follow the philosophy of value investing are among the most profitable decade after decade. Warren Buffett, Peter Lynch, Francisco García Paramés or Iván Martín are just a few examples of the long list of value investors who have managed to consistently outperform the market.

I recommend an article I wrote recently in which Gustavo Trillo explains why investing through value investingif you want to know more about the benefits of this investment style.

I want to learn to invest in the stock market. Where do I begin?

You can start with my free book "Quick Guide to Value Investing: 40 Questions and Answers to Get Started in Stock Investing". It was written with the idea of ​​clarifying the most common doubts of those who want to start investing from scratch.

If you have already read it and want more, you can take a look at my list of recommended books to learn to invest in the stock market. The books are arranged by level and by subject.

Finally, if you have any questions, you can talk to me at blog contact section. I will try to help you in what I can.