Investing in stocks: tips for beginners


The Dax itself reflects the development of the businesses it contains. A Dax ETF, on the other hand, contains exactly the same number of shares in exactly the same companies as the Dax, which is why it moves in exactly the same way. An ETF is also a mix of several stocks – with the advantage of low fees as no fund manager has to be paid.

Know your risk tolerance

You have understood what the advantages and disadvantages of different financial products are, you know for what purpose you want to increase your money – the question remains, what risk you are ready to take. without risk. You should therefore be aware of the level of risk up to which you can still sleep peacefully. This depends, for example, on the level and security of your income, whether other people depend on you or on the strength of your nerves and your resistance to stress. you are in general. Any investment is useless if you panic at the first crisis and rush to sell. For it is certain that the crises will return again and again.

Choose your strategy

There is no silver bullet that works equally well for every investor. It is important that the product matches your purpose and your willingness to take risks. For example, if you want to make provisions for old age – that is, build up wealth over the long term – ETFs are a good choice. The situation is different if you want to get more money in the short term.

Think about taxes

What many people don’t know is that you have to pay income tax on stocks. They are subject to what is known as the withholding tax of 25% – plus the solidarity surcharge and possibly church tax. The tax will be deducted directly by your securities account provider or your bank and paid to the tax office – unless you apply for exemption. Income is automatically reinvested.

Don’t trust insider tips

Whenever someone claims you’ll make a fortune with a particular stock, don’t blindly believe them! No one can predict the course of the markets with certainty, not even self-proclaimed stock market gurus. Of course, that doesn’t rule out the possibility that some stock tips might still work, but that’s more luck than skill.Loading…Loading…Loading…

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