Stock Trading for Newcomers

Open a Custody Account

  • A custody account is opened for stock trading.
  • Online custody accounts are reasonable. Documents can be directly downloaded from the website or they can be delivered via mail.
  • asic and account fees should be taken under consideration.

Share Purchase

  • Information regarding shares should be obtained.
  • Good strategy: widely diversified shares.
    Particularly suitable for newcomers.
  • ecommended term: 8 to10 years.
    Some shares pay dividends.
  • Shares are not recommended to investors who speculate on fast profits, but instead they are more suitable for a longterm investment strategy.

Share Sale

  • Basic rule: shares should be sold when the share price increases (and not decreases).
  • Stick to the target value: once the share achieves its target value, it should be sold immediately (rising share prices arouse greed for even higher share prices).
  • In Germany profits and dividends are liable to tax (exemptions are possible up to a specified amount). Therefore, shares are more suitable for longterm investments (e.g. pension plan).
  • Study: Germans want the school subject “Money and Finance”. According to the study of „comdirect Wertpapierradar Deutschland" it is useful to introduce an obligatory subject “Money and Finance”.

  • „The printing press is still running." The current decline in share price at many stock markets give a preview of the upcoming interest rate.