Entering the stock exchange does not take several million pounds, or even several hundred thousand. In fact, it does not even take several thousand. It is possible that the novice stock exchange will simply start investing A few pounds a day. Just like that.

Regular investment habit

Putting down 2 pounds a day can support in long -term, regular suction. Money may get up soon. During the year it would invest 730 pounds. In addition, £ 2 is only the initial amount. Over time, the investor can decide to put more if their finances allow it.

The obvious first move would be to set up an account or shares and shares and shares of ISA and to start regularly putting on money.

Dealing with investments

Before launching money to the market, it is worth spending some time to learn more about how the stock exchange works.

For example, an investor should understand ideas such as reduced risk by diversification (more arduous in a very compact budget, but still possible and crucial). And why the valuation matters not only how sturdy the company is and how to be a good investor.

Finding shares for purchase

Then they can start looking for shares to buy. When they start investing (and outside of it, in many cases), investors can overestimate their level of skills when choosing shares and underestimate the possible impact of risk.

So I think he can pay to start with a more conservative approach focusing on maintaining wealth more than striving for dramatic creating wealth.

As an example of a participation that the investor should consider, I would indicate J Sainsbury (LSE: SBRY).

The demand for groceries is high and resistant. Sainsbury’s is able to successfully compete in this market, both online and offline, thanks to a sturdy brand, a huge customer base, a well -developed loyalty program and shopping property.

Has dividend performance over 5%.

I see the risk. The food industry is highly competitive, squeezing the margins of profit. The company plans to reduce costs by getting rid of many employees can harm customer service, which leads to purchases elsewhere.

In the long run I think the prospects FTSE 100 The seller looks decent.

Being a realist in terms of expectations

With about 5%, investing 2 pounds a day for one year may earn just over 36 pounds of dividends every year. Dividends are not the only goal when people begin to invest, because growth can also be crucial. Individual investors can decide on their own concentration between growth actions and income.

This 2 pounds a day, even within a few months, can generate more money in the form of dividends. Passing it back, still putting 2 pounds a day (or more) and buying shares in the long run, I think someone can start investing without experience and potentially build the foundations of creating wealth in the coming years.