From the outside, it can look like a cluttered year on stock markets – and terrifying to start buying shares. But the recent variability of the market we saw was both bad and good points.

One of the good points is that buying some shares in brilliant companies much cheaper. In some cases I would even say that it is possible to choose the opportunity.

But where to start – and does it require a lot of money? The answer to the second question is not. It is possible to start buying shares with a very constrained budget. Here’s how.

Preparation for investing

First things. The assumption, towing and sale of shares and transfer of money as well as transferring money to it can take some time. Thanks to many options on the market, it pays to conduct research and see what sounds the most appropriate.

So the first move, before someone is ready to buy shares, would be a comparison of some of the many accounts, trade applications and ISA shares, which are available on the market.

After choosing one, the money to invest can then be moved.

Learn more about the market

You can start with a lack of knowledge – but it may be costly to buy shares without understanding how the stock market works.

So I think it is vital that someone devotes some time before investing a penny to learn more about some key concepts. Such as diversification even with a tiny budget to get a difference between a real action action and what is known as a value trap.

Wallet building

Then there is a chance to buy shares and build a wallet. Each investor has his own knowledge, risk tolerance and goals. So no two portfolios will be the same, even when investing below £ 500.

But there are several things on the whole board. For example, I think that everyone should strive to be a good investor. Similarly, it is worth trying to avoid some joint mistakes of beginners who make people make when they start buying shares.

Investing, one share at once

One of them, I think, should consider up-to-date investors City of London Investment Trust (Lse: cty).

Investment trust is a collective investment, so when buying a participation in it, the investor effectively receives an exposure to the diverse portfolio of City of London covering dozens of different companies.

These are mainly enormous, known British companies. So in a wide range of City of London should be widely in line with the stock exchange, although this is not guaranteed.

For example, taking the last five years, the price of the City of London shares increased by 45%and the flagship increased FTSE 100 The index increased by 46% during this period.

City of London raised a dividend for action annually for almost six decades. Its current performance of 4.5% conveniently breaks the FTSE 100 capacity of 3.4%.

No dividend is never guaranteed. His enormous exposure to shares in Great Britain means that the deterioration of the economic situation on these shore can eat City of London profits.

Despite this, I expect his managers to try to develop dividends if possible.