The answers to basic investment questions you’re too scared to ask
Learn about the markets with Invstr
Let’s face it, investing can be a daunting prospect for a first-timer. So many questions may arise for a beginner to the markets. This guide will keep it simple and stick to the basic queries that some newbies might be afraid to ask.
Can I invest by myself?
Absolutely, yes. You don’t need to rely on financial advisors, banks or brokers to tell you how to invest or what to invest in. The Invstr app provides you everything you need in one place to help you become a successful self-directed investor. Investing shouldn’t be laborious, long-winded and expensive. It should be fun, simple and fairly priced. That’s where we come in. Through our low-cost Portfolio feature, investors can start trading their favourite stocks quickly and easily with minimal fuss, removing complications and helping to encourage beginners to get started.
Read more here.
Do I need a lot of money to start investing?
No you don’t. With our platform, you can invest using fractional share ownership that allows you to own a slice of the companies you love with as little as $1.
Fractional share ownership refers to a process whereby investors can choose to purchase parts of a share, as opposed to paying the full share price.
This is a particularly attractive option for beginners to the financial markets, who may want to invest in their favourite businesses, but do not yet feel totally comfortable with paying the full market price for a share of a major company such as Amazon. This is understandable given that purchasing a single share of Amazon would cost an investor just over $1585 at the time of writing.
At Invstr we have lowered the financial barriers to entry for new investors, by creating the Invstr Portfolio in association with our partners at US brokerage firm DriveWealth.
Read more about fractional share trading and the basics of stocks and shares here.
How do I become a better investor?
It pays to understand the markets. By developing an understanding of how and why prices move and the types of events that influence them, investors can hedge against losses and improve the amount of successful investments they make, thus becoming better at their craft.
Within the Invstr app you can stay in tune with the markets by following live updates inside your watchlist and on the feed, which contains live streaming news from top sources as well as insights and analysis from the Invstr staff and price alerts for the instruments you’re following. This means you can understand what is driving trends in the markets and use this knowledge to your advantage.
Practice is also a valuable tool. By playing the Investment Game in-app, Invstr users can play the markets risk free and become confident managing a virtual portfolio before moving onto the real thing.
Learn about the markets while following companies you’re passionate about and interested in. This will help you make solid investment decisions and become a better investor.
Why do markets move?
The main mover of asset prices is supply and demand, as well as investor sentiment and external events.
There is a limited number of shares in circulation for a given company, so if many investors want to buy a share its price will increase as its relative scarcity increases. The same is true of other assets like commodities.
Sentiment (one of many words explained in our basic market terminology guide) will also drive prices, because if sentiment is positive for a certain stock, its popularity will increase, thus encouraging more people to invest in it. The reverse is also true if sentiment is negative (or ‘bearish’) towards a certain stock or other asset.
External events which affect markets can range from anything to political upheaval, changes to government policy which can affect certain asset classes and sectors, as well as the weather (which can disrupt sales or global trade).
Want to learn more about the markets and how to become a better investor?
Download the Invstr App now.