How to invest in the IBEX 35 from home | Steps and Tips
As we have written about previously on the blog, the IBEX 35 is the main stock index of the Spanish Stock Exchange. It reflects the variations in prices of the 35 most prominent companies that make up the Spanish stock market.
Before investing in the stock market, as well as in any other type of investment, one of the most important aspects, and one that we always insist on, is financial training. Having knowledge about financial terminology, markets, how they work, how to invest, what techniques to use, when to do it... is essential. It will give you security and confidence when investing, and in this way, you will know how to make the best decisions and you will know how to use the appropriate strategies when the time comes to act in the markets.
It is also important to study and maintain control of the prices of listed companies (how they evolve, quarterly results, financial situation, competition, etc.), the news around them, and what is happening in the international markets. In this way you'll have a better understanding of the context around a given company.
With some training and background information in your pocket, it is time to get going on the stock market and, for this, you will need to open an account with a regulated broker. Study the market brokers, how they operate, what commissions they charge, etc., and choose the one that suits you best.
Once you are in the clear, you should also choose an analysis tool to interpret the market, either through technical analysis (studying a value in the market, how it has evolved, its historical price trajectory, the fluctuations between supply and demand) or fundamental analysis (it focuses more on other internal and external variables that may affect the price. Plans for future expansion, income forecasts, profits, growth, the sector the company is in, or the economic environment of the country or countries in which it is based etc.). Currently, there are many the tools on the market. A good rule of thumb is to choose the tool with which you feel most comfortable.
Currently, there are many applications on the market for trading on the stock market - without having to leave home. Some of them are:
- Naga: our favorite application, free and available for web and mobile. Intuitive, simple, and easy to use. It keeps you informed about the financial news of the markets and allows you to interact with other followers in real-time. It allows self-copying to other traders and has multiple payment methods available.
- Plus500: free and available for web and mobile. It is quite popular, simple, intuitive, versatile, and functional, although the graphics are not interactive.
- eToro: free and available for web and mobile. It uses innovative technology and a simple and accessible interface, with personalized notifications, and allows self-copying.
- XTB xStation: Free and available for web and mobile. More focused on experienced traders. It stands out for its dynamic graphics system and for the multitude of technical analysis tools that it offers in real-time.
- Capital.com: Commission-free and available for web and mobile, with an intuitive, easy-to-use interface. It provides free access to real-time quotes and updates, technical indicators, advanced charting, and analysis tools.
Choose the platform with which you feel most comfortable and safest.
Unlike other markets, the IBEX35 closes on some holidays and therefore there is no activity on certain days, such as New Years', Good Friday, Easter, Labor Day, Christmas. Before planning your strategy, check the stock market calendar and make sure the market's not going to be closed!
Also, the opening hours and closing hours vary. The hiring hours are between 9:00 a.m. and 5:30 p.m. On December 24 and 31 the session is normally reduced and closes at 2:00 p.m.
And finally, plan and define your investment strategy so that you can obtain long-term benefits. Decide, in advance, how much money you are going to invest and what objectives you want to achieve. In other words, you must be clear about what return you want to obtain, in what term, and what risk you are willing to assume. Our advice is to start small, wisely, remember that the market is volatile and profitability is constantly in flux. Remember the stock market allows you to diversify stocks, so we recommend that you diversify your investments in different companies so that you can minimize risks.
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