What you first need to know about shares in Holland. Before you start buying shares, it is important that you understand exactly how shares work. Below we answer frequently asked questions about shares. In The Netherlands we can clearly see that as Dutch people call: aandelen Facebook kopen is very popular and in demand on the stock market. But how can you trade, you might want to know more about how CFDs work? Then read this article.
Long term: buy shares physically
You can choose to buy shares for the long term. You do this with a trading account at a traditional broker. When you buy shares for the long term, it is especially important to check the figures carefully. You want to make sure that the company remains profitable in the long term.
Short term: speculating on shares
You can also actively trade in shares. You speculate on short-term rises and falls. For this you can best use a derivative such as the CFD. CFDs allow you to better respond to rapid price rises and falls.
- With CFDs you can start trading from as little as 100 euros.
- You can use leverage so that you can bet with less, more.
- You can bet on a falling price by going short.
- With orders you can automate your investments 100%.
What exactly are shares?
Shares are property securities. When you own shares in a company you are co-owner of the company. You often receive part of the profits in the form of dividends. However, most people also own shares because they hope that the price of the share will increase. This is also called price speculation. Want to know more about what shares are? Read more about what shares are. Do you want to know more about the stock market in The Netherlands? Then we’ll advice you to check one of the best financial review website in The Netherlands called Spaarbuidel.nl
Dividend: what is it?
When buying shares, you have to take the dividend into account. When a company makes a profit, the company can decide to pay out part of the profit to the shareholder in the form of a dividend. A good dividend can significantly increase your return. With the dividend calendar you can see when companies pay dividends. Want to know more about dividends? Read all about dividends here.
How do you determine when to buy a share?
In order to make money by investing in shares, it is of course important to time the moment of purchase well. There are two suitable methods for this:
- Fundamental analysis: here you analyze the potential of the company.
- Technical analysis: here you analyze the price patterns of the stock.
Pay attention to your risk: reward ratio
Good investors always take into account the risks of their investment. The basic rule is actually simple: make sure your potential profit is higher than your potential loss. To do this, it is important that you draw up a good plan before you buy a share. Consider at what price you take your loss and at what price you take your profit. Suppose you buy a share for an amount of € 10. You expect the price to rise to € 15. Your potential profit will then be € 5 per share. The price of a share can also drop to € 9 which means that the potential loss is € 1. Your risk/return ratio will then be 1:5.
With this investment you can earn five times more than you would lose. It is always wise to take positions with a favorable risk/return ratio.