Step by step.. Learn the 5 most important tips for investing in the stock market during the new year

Many people with financial surplus seek to invest in the Egyptian Stock Exchange, through stocks or investment funds, in order to hedge against the expected movement of the Egyptian pound’s exchange rate against the US dollar, and against the increasing inflation rates that the Egyptian economy is currently witnessing.

Ways to invest in the stock market

There has become an urgent need for many Egyptians to enter the world of the financial market and invest in the stock market with the aim of achieving financial returns and diversifying income. However, there remain question marks and ambiguous aspects regarding the nature of the stock market’s work, especially for beginners, which require careful explanations and understanding before entering the market.

Methods of investing in the stock market

It is known that the Egyptian Stock Exchange has its own law, and its many methods that are so intertwined that it is difficult for many to make any decision in it unless they are fully aware of the financial rules of the market in order to make the right decision. To start investing in the stock market, the investor must take all necessary precautions, know the steps of speculation and trading, and take the advice of experts. market, to make a profit and avoid financial loss.

The specialists and experts in the stock exchange explained a set of tips that help the investor make the right decision at the right time, led by Rania Yacoub, a member of the Board of Directors of the Egyptian Stock Exchange.

Tips for those new to the stock market

Yacoub said that in order to find out the most important advice for those new to the stock market or for old investors, there are several steps and procedures that the investor must follow, in addition to the advice that must be implemented, to be careful and take all precautions to enter and exit this market without suffering a loss.

Trading companies and funds

Yacoub says that there are two ways to deal with the stock market for the novice investor. The first is investing through securities trading companies (brokerage), which are private companies that mediate between the client and the stock exchange, and the second is through investing in funds that deal in stocks, and these companies provide services to investors such as: Financial analysis and technical analysis service, through specialists who have been approved by regulatory authorities.

Using brokerage companies

Brokerage companies provide services that help the investor, such as providing research and financial and technical reports that help him make a decision. The company’s technical analysis department also helps the client by clarifying the entry and exit points and the direction of the stocks.

Investing in stock exchange funds

“As for the second method, which is trading through funds that deal with stocks, and which are managed by specialists, some of which deal with stocks, treasury bills, or government bonds, and some of them are funds affiliated with banks and others affiliated with private companies, and the return on them is announced, but the client must, before starting, He should be familiar with the type of fund in which he invests.

Social media sites cannot be relied upon to collect information and make decisions

Yacoub advised investors not to rely on social media sites or non-specialists to collect information and make decisions, but rather to seek help from people with experience and expertise in this field. It is also necessary to follow the market first-hand and watch news economic analyses, to avoid falling into crises and make the right decision at the right time. It is appropriate to go to invest in another sector, because when a crisis occurs, not everyone loses, but there are sectors that benefit.