Have you ever considered venturing into the stock market? Starting investments in Stock Exchanges as Bovespa (B3) may seem like a distant idea, especially for us, students and trainees that see ourselves on a monthly basis with such small budgets. However, this is not an initiative to be discarded. According to the B3 Investor Profile, released in August of this year, there are 12,287 young people aged 16 to 25 years doing business on the Stock Exchange: 12,730 men and 2,557 women. Compared to 2015, the growth is obviously alarming, with only 2 thousand young people being part of the stock market of the São Paulo Stock Exchange (Bovespa). Thinking about this demand and how to help university students to enter the world of business, Her Campus Cásper Líbero talked to the financial advisor Rodrigo Bussab about the best investments for those who earn low wages and which are the cares to take over in the initial period.
How to begin?
The first step for those who wish to join the Bovespa is to open an account. There are several low-cost investment portals and Home Broker services – system that inserts the investor in the stock trading/trading period – where the student can register to start the business. Securities brokers (corretoras de valores) are also viable options for the beginning negotiator, since they play the role of mediator between the client and the financial institutions, charging small fees to offer the best service according to the interest of each person. The consultant commented that students can and should enter the stock market: a young person, about 18 years old, who starts investing R$ 300 a month, can guarantee R$ 245,000 when he’s 45, for example. However, he emphasized that deposits should increase according to the increase in the remuneration during the professional life.
“At 18 – especially if you still have some bills paid because you live with your parents, separate 10% of what you earn. Because later on, possibly with family, children and more responsibilities, you may need to pay the bills first and separate them from the balance then. And if there is enough!”, Bussab explains.
How to profit and which cares are needed?
For beginners who want to take advantage of the good gains that the Exchange can give, the best option is to buy stocks from large companies, while paying attention to those with low volatility (when the historical profitability chart is more like a rising and less similar line with an electrocardiogram).
A 6 to 8 stocks with an inverse correlation – when one branch behaves differently from the other, as in the crisis, when banks do well and retail does not – are indicated. Thus, it is possible to ensure that in the long run the losses are offset by the gains. Another tip is constant monitoring and use the maximum stock purchase: buy low and sell high.
Regarding the dangers surrounding the Stock Exchange, the consultant warns against speculation, referring to the frequent purchase and sale of shares. “This is for the few experts who have six computers up front and are monitoring the world and the various time zones behind information and opportunities. Few know the right time to buy and sell, ” explains.
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Another important care is to buy stocks that have to supply the “cash” or “envelope” of the long term, that is the money that you won’t use on your day to day, either to buy a ticket of a show of an artist passing through Brazil (opportunity) or for an emergency (I lost the scholarship or I will need to live alone). Here, separating the short-term amount for the low-risk investments such as CDB – Certification of Bank Deposit (not to apply through Bovespa), for example, medium-term moderate risk, such as multimarket funds and investing in stocks for the long term is a good strategy to maintain the reduce risks surround the market. Finally, the financial adviser advises that it is necessary for the student to ask for help from a specialist if he/she has doubts. Recognizing your difficulties is an important step for positive results. In addition, he emphasizes that to be an investor is not enough just to have discipline, it is necessary to have constancy, rhythm and to know what is the purpose of that money.
“I believe that people have to fend their way and keep in mind that keeping money for whatever purpose is always important. It is certain that you will need that amount at some point in your life. So if you usually go to the parties six times a month, you do not have to stop going. Go four times and save money. Remember: there is no conquest without sacrifice,” he concludes.