Important questions at the start of investments for all: what market, strategy, broker choose

Which market to choose?

My opinion is that serious investments begin in the US stock market, but for beginners most likely it will be lowered at once.

The initial deposit is big and all sorts of issues with tax. Therefore, I think it is better to start from the Russian market. On it you can receive information without language barrier, the businesses are more or less understandable, and the main risks are well known to us.

You can try with completely small amounts.

Start your investment the most ideal option with 2 funds. Of course, index. And only a year later, two trying forces on separate promotions.

If we talk about US stocks, it is very unlikely that without experience you have enough competence to take away promising paper and distinguish a good analyst from bad. Therefore, the same advice, funds.

What strategy to choose?

We would recommend everyone at the initial stage to diversify the investment. As already wrote the previously large part of the portfolio to place in ETF. Wide diversification will save you from strong losses on the first pairs. Funds will simulate errors of the choice of issuers.

The first your strategy should be «buy and hold.» And here the most difficult will be to keep. Since at first it seems to everyone that the more often we traded the more profitable it will be. And here just the opposite. Less movements on the account, more profit.

What broker choose?

It is worth paying attention to the top for customers — Sber, VTB, Tinkoff. All of these brokers commission is approximately the same and one of the lowest for private investors (carefully examine the tariffs). It is best to choose between VTB and Tinkoff, since Sberbank has no access to St. Petersburg stock exchange and buying currency is not so comfortable.

When will the first profit?

This is the burner). This is not a contribution and not a deposit. There are no more guaranteed expectations and deadlines. But here the statistics on large periods work well.

For example, the US market over the past 90 years has increased by 9% per year. There is no such story on the Russian market, but the last 20 years this growth amounted to 17%.

What does it say about? The fact that on the horizons from 10 years can be expected similar profitability. But it does not mean that you will have exactly so much every year. In some years you will have significantly more. For example, last year awarded investors 30-50% yield. But there will be negative years.

My opinion, the average annual profitability is better for the first time after 3 years or 5 years.

✅ Be patient in investments, and the market will reward you with a good profitability.

✅ Choose the yield of your strategies first relying on possible risks.

Want to learn how to correctly choose the tools of the stock market? In our consultations, we explain on your fingers, where to start and where to invest savings. Our strategies make money from 8% per annum in dollars.