Take a first Step to Invest in the Stock Exchange

Posted by Andrewleon on October 17th, 2019

1. Seek Advice

To form an investment portfolio MRK stock, it is necessary that you know the mechanisms with which the stock market works. There are several financial institutions, such as banks and brokerage firms, which have advisors, who will help you know the risks to which you are exposed if you wish to invest, as well as the estimated time necessary for your investments to yield the fruits you want. In addition, they will advise you to place your money in the best investments.

2. Know your Profile as an Investor

Depending on the time you want to devote to the management of your investments and the risk you want to assume when investingin MRK stock, you must decide if you are a passive investor, with which you would have to dedicate 4 or 5 hours per month to manage your portfolio, in addition to Your risk profile would be low, so you should invest in funds. If you are an active investor, you would have to devote at least 6 hours a week to the management of your assets.

3. Define your Investment Objectives

After you have ordered your personal finances and have determined your investor profile, you need to know what you want to invest in the MRK stock, since if you lack investment objectives, such as buying a house, a car or guaranteeing the resources for your retirement, the decisions that you must make when making transactions in the market will not be based on what you want to achieve with the money invested, but on the luck you think you have when making your investments and this could take you away from the profits .

4. Do not Invest all your Assets

Although you have decided that your risk profile at the time of investing is high, that is, that you are able to tolerate fluctuations in the prices of the shares that you have acquired, it is not recommended that you allocate all your assets to the investment in the Stock Exchange. This is because these fluctuations, as well as certain investment schemes, will not allow you to have the money invested in case you have an emergency or if you are scheduled to make a significant expense. It is best to allocate a fixed amount with clear objectives.

5. Avoid Falling into Anchoring

While it is necessary that you have a financial advisor that answers all your doubts about how the incursion in the stock market works, it is important that you consider asking for a second or third opinion when determining the shares or titles that you want to sell and buy, this in order not to fall into the so-called anchoring (anchoring), a problem where you run the risk of not taking into account the context in which you are making your investment by anchoring your attention in a particular action or moment , so your results may not be as expected.

6. Invest Through Authorized Intermediaries

The only stock brokers authorized to buy and sell shares are the brokerage houses, so to invest in the MRK stockit is necessary that you open an account in one of them. There are a lot of options to enter the stock market, you must compare which one suits your objectives and your investor profile, as well as verify the qualifications granted by national and international consultancies for the portfolio in which you wish to invest.

7. Diversify

Not putting all the eggs in the same basket or not playing everything in a single card are expressions that perfectly summarize what it means to diversify our investment portfolio. You can invest in different instruments within the stock market, such as shares of foreign companies, government debt or companies that are listed on international indexes; likewise, you can choose the purchase of shares of different sectors and with a different size, to prevent losses caused by the fall of a specific sector or by the instability of the national market.

8. Continually Analyze the Behavior of your Investments

Keeping a journal of buying and selling stocks, as well as the reasons for buying and selling, will help you know your mistakes and successes, making it easier for you to develop a long-term investment strategy. Studying your own decisions will help you learn more about your profile as an investor and your risk tolerance. Likewise, analyzing the behavior of your investments will give you, with patience and discipline, the ability to take advantage of different opportunities with greater effectiveness.