1 – You can open an account
This is the first step and a must to be able to negotiate securities on the stock Exchange, whether shares, bonds, Mutual funds, etfs or other securities.
This account will allow you to carry out your transactions for purchases and sales. You will stay your cash, and there will be more gains. It will also dividends that can be paid, in shares or in cash, by listed companies. It is the link between you and the markets.
a securities Account or PEA ?
The savings plan in shares (PEA) is the most attractive to invest in the Stock market to the extent that the gains are tax-exempt. This is not the case on a securities account ordinary. Only constraint, the capital must be retained or reinvested in the plan for at least five years.
Since 1 January 2014, you can contribute up to 150000 euros on a PEA. This leaves a good margin of manoeuvre.
If you’re targeting foreign values, you will need a securities account. The companies that do not have their registered office in the european Union are not eligible for the PEA.
Through traditional or online broker ?
to Pass through his / her banker is certainly the easy solution. But be aware that the online brokers have serious benefits. Starting with their brokerage fees, even more competitive. The rights of custody and other account maintenance fees are generally free of charge and you can enjoy the bonus of a whole range of services and tools almost professional. Actors such as Binck, Bourse Direct or Fortuneo is part of the most attractive.
2 – One buys
once your account is open and funded, it is up to you to play. But be careful not to launch yourself in all directions.
The Stock market requires caution and reflection. Assess first your risk appetite so you know if you are an investor of type a “good father of family”, a small-time speculator or a true speculator.
Your knowledge of the financial markets will be here all its importance. You will then be able to invest accordingly. The ideal is to have a base of strong values to begin with.
Choose limit orders
many types of orders exist. But it’s better to use the orders “limit”. The limit that you set at the time of placing the order is the maximum price that you are willing to pay to purchase or that you want to perceive, at minimum, in the event of a sale. Avoid orders so-called “market” or “at best limit” with whom you have no insurance on the price of execution of your transaction of purchase or sale.
And the SRD ?
the cash, the settlement of securities purchase and their delivery to the sales are from orders executed. The deferred settlement service (SRD) is a mechanism which allows you to buy and sell the securities to credit. You will not have to adjust them or to deliver them at the end of the month stock. It is a system to leverage to be reserved for the most seasoned.
3 – sell
In Exchange, you must be able to set limits and not be too greedy. To be clear, he must learn to make its profits. You can’t let him sleep a portfolio during the years.
It is necessary to manage it. Investing in the stock market requires a minimum of attention. In addition to the information provided by the companies themselves, the media and professionals, there are tools to help you determine the right time to act.
We will mention two : the PER (price earning ratio) that can measure the expensiveness of a share, and earnings per share (BNA) estimated for the years to come, which allows to assess the ability of the company to increase its profits.
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Exempt in the framework of the PEA, the gains are subject to tax on the income on a securities account. Dividends, after an abatement of 40 % and a withholding tax of 21 %, which comes to minimise the tax due. Add to that the 15.5 % of social taxes. The capital gains tax from the first euro of sale. They have a 50% reduction if they are held between two and eight years of age, and 65 % for a detention of eight years and more.