How are stock investors paid

Stocks and the stock market: What distinguishes gamblers and investors

Car maker Tesla with a new record on the stock exchange, iPhone maker Apple is the first company worldwide to achieve a market value of 2 trillion dollars. And there are also opportunities for short-term price gains with German companies: For example, when the food supplier Delivery Hero is promoted to the Dax or the biopharmaceutical company BioNTech makes progress with the development of a corona vaccine.

Lots of small investors then keep asking themselves: Should I get into this stock rally now? Is it worth to quickly rely on this trend?

Main problem: The prices are then usually already relatively high, nobody knows when a correction can start. Especially with stocks that are celebrated in this way, it is easy for the price to collapse again. Then the shares would suddenly be worth less.

Sure it is possible on such Equity trends to set and to be successful with it. But let's be honest: This is more gambling than sustainable investing. What exactly is the difference?

A gambler hopes. He's waiting for an opportunity. And he also needs a good dose of luck. Anyone who buys a single share because it is currently in vogue has to find the right time. And then hope that nothing negative happens that pulls the price down and thus means the loss of the money invested.

Let's be honest: no small investor reads the figures in detail, knows business plans, market analyzes, complicated P / E calculations or chart analyzes. All data that would justify an investment decision. So it's not about a well-founded analysis - and certainly not about hope. You gamble - in the hope of price gains and returns.

Mutual funds vs. stock index

Because even those who are paid for it need a good dose of luck in their investment decisions. That shows a Analysis of financial test (Stiftung Warentest): It examined how well fund managers got their assets through the corona crisis - experts who do nothing all day but deal with stock values, analysis, future concepts and valuations.

The result is sobering. “Far more than half” of the Germany funds examined performed worse than the German Dax share index, according to Finanztest in its September issue. When the stock market crashed during the corona crisis, only one in three (33 percent) actively managed funds was better than the leading index Dax. The majority of professional gamers do not even manage what hobby gamers dream of: being better than the market.

AInvestor takes a systematic approach. He doesn't have to hopeto fear for his money or to keep an eye on prices. He has one goal: old-age provision, wealth accumulation, saving for a child or dream home. Investors are focused on achieving this goal. This is what distinguishes the two: An investor focuses on the long term and reliability and is much less risky than a gamer. After all, he does not want to lose the money, but rather to achieve a good return in the long term. Only that will bring an investor closer to achieving personal goals.

So he does not focus on individual stocks that can quickly lose value. Instead, he relies on the overall market, on the positive development over several years, on a reliable return. The experts at Finanztest recommend ETFs for precisely this purpose: “ETFs remain the first choice for investors who want to bet on the German stock market. The exchange-traded index funds are available on the Dax with 30 stocks and on the FAZ index with 100 stocks. "

Why ETF saving brings more

Advantage of ETFs: They reflect the overall market and get by without highly paid fund managers, which is why they are significantly more cost-effective. With them you can therefore benefit from the development of the markets without any problems. Since ETFs also invest worldwide, the soaring of a share such as Tesla or Apple also has a positive effect. But: If the individual share crashes, there are enough other values ​​in the index from which the investor can still benefit.

It's especially relaxed for investors when they use a robo-advisor like growney. Your money is then automatically invested in various ETFs around the world - with the aim of achieving good long-term returns. And the investor doesn't have to do anything more than wait until his savings and investment goals have been achieved.

Of course, not every investor has the same goal. That is why the robo-advisor supports you in finding the right investment strategy for each investment goal. What sounds complicated, goes very quickly with digital asset managers: After just a few clicks, a suitable investment strategy is determined so that the desired savings target can be achieved.

What exactly does it look like you can just try it out here!

Because let's be honest: Your retirement provision or money for the children or a dream house - that shouldn't be gambled away lightly on the stock market, right?