Start your training – first steps

Investing is a process that requires not only knowledge, but also careful planning. For beginner investors, the most difficult moment may be choosing the right place, assets and amounts to invest. Meanwhile, it is the first steps in investing that often determine the further strategy and influence subsequent financial decisions, which is why it is so important that the beginnings in the world of investment are well thought out and planned. In this article, we will discuss how to start investing, what assets are worth choosing, and how to properly prepare for your first investments.

 Invest, but where?

Investing requires an intermediary who has access to the markets we are interested in. In the past, these were traditional brokerages, but today most investors use an investment platform that allows them to execute trades, check out analysis and track changing trends.

Choosing the right investment broker is therefore the first and most important step to be able to start investing.  There are many trading platforms that offer a variety of investment opportunities. When choosing a place to invest, it is worth paying attention to:

• Regulation and security of transactions. Encryption security, identity verification and regulatory compliance.
• Transaction costs. Commissions, spreads, account maintenance fees.
• Access to markets and instruments – it is worth checking whether the trading platform gives access to all the assets we are interested in.
• Tools and support. Analytical tools, educational materials, technical support.

The pro-trading firm 1cft is an excellent example of an intuitive and flexible trading platform that allows traders to trade a variety of assets. With a broad market offering and advanced tools, 1cft gives users access to global markets, enabling quick and efficient portfolio management. The choice of the right broker should be tailored to the individual needs of the investor, taking into account the experience and investment goals.

 Invest, but in what?

Choosing the right assets to invest in is another important step that affects the success of the investment and the ability to execute the plan. There are many types of assets available on the market, including stocks, bonds, commodities, cryptocurrencies, and ETFs. Each of these financial instruments has different features and offers different levels of risk and return, so it is worth analyzing them well before making the final decision to invest

Here are some of the options you might want to consider:

1. Shares, i.e. shares in companies listed on the stock exchange. Investing in shares allows you to participate in the profits of companies through an increase in the value of shares and dividends. However, it requires a careful financial analysis of companies and ongoing monitoring of the market and economic situation. Potentially high profits, but also high investment risk.
2. Bonds, i.e. debt instruments issued by states or corporations. Bonds provide a fixed income in the form of interest and are often used to stabilize an investment portfolio and reduce risk, but this is associated with lower returns.
3. Mutual funds and ETFs allow you to disperse risk without having to manage individual investments yourself. There are various types of funds to choose from, e.g. index or sector, which makes it easier to match them to the investor’s strategy.
4. Raw materials, i.e. gold, crude oil or agricultural products. Such investments usually serve as a hedge against inflation and volatility in financial markets. However, commodity prices are vulnerable to fluctuations related to geopolitical and climatic factors, as well as changes in demand and supply, which can affect their volatility.
5. Currency. Currency trading allows you to speculate on changes in exchange rates between different currency pairs. The Forex market operates 24 hours a day, which offers many investment opportunities, but also requires advanced knowledge, high commitment and risk management skills due to high volatility of exchange rates.
6. Cryptocurrencies. They have the potential for high returns, but they are also not very stable, which comes with a lot of risk. Therefore, investing in cryptocurrencies requires an understanding of blockchain technology and an acceptance of the high level of risk associated with regulatory uncertainty and digital security.

Invest, but how?

Before making your first investment decisions, it is worth developing a personalized investment plan, which should take into account your financial goals, investment time horizon and acceptable level of risk. An important part of many investors’ strategies is portfolio diversification, which makes it possible to reduce risk by investing in a variety of assets.

Preparation for investing also includes constant deepening of knowledge about financial markets, investment strategies and analytical tools. Education and development are essential for making informed and thoughtful investment decisions, so it is worth taking an interest in current trends and reading forecasts and expert opinions. This is made possible by the 1cft investment platform, which gives you access to a huge knowledge base and many useful investment tools.

It is also worth remembering to control emotions and avoid making decisions under the influence of fear or excessive enthusiasm. This allows you to maintain discipline and consistency in the implementation of the plan. It is always important to remember that investing is a long-term process, requiring patience and thoughtful actions.

 Invest, but how much?

Determining how much to invest at the beginning is one of the most difficult decisions, which should depend on your individual financial capabilities and investment goals. The most important thing is never to invest funds intended for current needs or from the created financial cushion (emergency fund). Investments are carried out only from the financial surplus, which can be devoted to the long-term development of the portfolio, and its possible loss will not result in the loss of financial stability.

Creating an investment plan and determining the amount allocated to the investment portfolio is therefore always a very individual matter. However, it is worth considering a few tips that will make it easier.

• A financial cushion. You should always first build savings for unforeseen expenses and random situations. It is recommended that the emergency fund is equivalent to the cost of living with a minimum of 3 to 6 months. However, it is best if the financial cushion ultimately allows you to survive 12 months.
• How much to invest? Percentage of income. Some experts recommend investing a certain percentage of your monthly income, e.g. 10 – 20%.
• Set limits. Determining the maximum amount we are willing to lose and sticking to that limit. This reduces ill-considered decisions and excessive risks.
• Gradual increase in financial commitment. It’s best to start with smaller amounts and increase your investment as your experience and confidence grow.

Of course, the investment plan must be flexible and adjusted as life and market circumstances change.

The first steps in investing are crucial for later financial success. Choosing the right broker, assets and investment strategy requires careful analysis and planning. You need to consider the risks associated with different investment styles and asset types, as well as your financial goals.  By doing this and gradually increasing your financial exposure, you can build a stable portfolio that will bring long-term returns. Using professional tools such as a pro-trading company  and constantly developing knowledge and skills in the field of investing allows you to make informed decisions and achieve your financial goals.