What tips does a stockbroker give

Ten tips for stock market traders

1. Never buy stocks on credit. Because then the shares of the bank serve as security. If the price of the shares collapses, the bank is entitled to sell the shares. Therefore: only invest money that you can do without in the long term.

2. Don't put everything on one card. There should be different values ​​in the depot in order to distribute the risk. This requires a few thousand euros, which should be invested in two to four purchases. An even broader denomination in individual investments of only a few hundred euros causes excessive bank charges. Above all, the portfolio should not contain more than 15 different values ​​- otherwise the investor will lose track of things.

3. Prefer companies that pay dividends. Such stocks are usually not subject to such strong price fluctuations as stocks without dividends. Companies that don't pay dividends are often young, making losses, and at greater risk of bankruptcy.

4. Only buy what you know. Shareholders acquire a stake in the company. In order to properly assess the risk, one should therefore know exactly what the company makes and what the market for this product looks like.

5. Let profits run. The trend is the shareholder's friend, says a stock market proverb. It makes sense to set long-term course goals.

6. Limit losses. If the price of a stock crashes, sell! Investors should set so-called "stop-loss limits": If the share falls below a certain price, it should be sold. With this rule you can avoid even greater losses or total losses.

7. Keep an eye on the depot and collect information. Shareholders should follow the business news very closely, because company and industry situations can change quickly.

8. Rely on industry leaders. The company with the most market shares in its sector usually gets through crises best.

9. Buy only liquid stocks, i.e. means of payment that are directly available to companies. Stocks that are rarely traded should be avoided. Especially since their price can make unexpected jumps because, for example, the seller has set a limit, but the buyer has not. On the other hand, stocks from the "Deutsche Aktien Index" (DAX) or "Midcap-Index der Deutsche Börse" (MDAX) are always traded in large numbers.

10. Look for serious advice. The best advisor is your own mind. "Stock market gurus" with "hot tips" should be mistrusted because it is not their money that is at stake.