What is online investing?

“Online investing” means investing money over the Internet.You invest money in investments – from your computer or mobile phone.

For example, if you have a computer at home or a mobile phone in your pocket, you can buy and sell shares online relatively easily.This has made the issue of investment much more accessible and simpler. More people can participate and invest – not just the professionals. But the unwritten investment law, whether online or offline, is: Don’t play a game whose rules you don’t understand. It is important that you only invest in investments where you have a clear view. A few basic rules:

  1. Scatter your risk
    No matter where, how and in what you want: growth-oriented investments are never completely risk-free.

And extremely low-risk investments rarely allow your wealth to grow properly. Fortunately, there is a reasonable middle ground: risk diversification. By dispersing your assets to different industries, companies, and instruments, you minimize the risk of losing all your money in the event of a collapse. Conversely, you maximize your chances of winning by responding differently to specific events from different companies and industries.

  • Beware of complex packages and hidden costs
    Many people invest in managed funds or ETFs (Exchange Traded Funds) because they think this is the cheapest and easiest way.
  • And yes, it is true that investing on your own involves transaction costs and requires a certain amount of know-how. But ETFs and funds also have some drawbacks. Since these are not individual shares, but complex, combined financial packages, it is very difficult to keep track. You only hold a package, but you are not the owner of the individual shares. That means that if you don’t like a company anymore, you can’t just replace it. And last but not least: fund managers often estimate high, incomprehensible consultants, which cost you much more money than you thinkbefore.In our article “ETFS: What you need to know” you will learn more about the advantages and disadvantages of ETFs and why we at Yova Impact Investing prefer to rely on direct investments in equities.And these are easier online than ever.

  • Long breath pays off
    Absolutely no one can foresee the stock market.
  • And the past can also give us clues at best. So if you’re just looking for quick money, you’re taking an incredible risk. A long-term, risk-optimized strategy pays off. The longer the time horizon, the better you can simply “sit out” weaker years. Incidentally, this is also the strategy of star investor Warren Buffet, who says: “My favorite stock holding period is forever”. Of course, you don’t have to go that far, but definitely plan to invest your money for at least five years.

    You now know the most important game rules for online investment.

    If you feel like it, check out the Yova website.With just a few clicks you can create a personal online investment strategy for you free of charge and without obligation. Here is the link to it.

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