The stock market attracts you but you don’t really know if you have the budget to invest. You want to invest with a small amount of capital, but can you really start investing in the stock market with 100 euros?
Buy stocks or invest in your knowledge?
Before investing in the financial markets with just 100 euros, we recommend that you invest on your knowledge. Books, YouTube channels, training will help you better understand the stock market in general.
With 100 euros, you will have access to great knowledge that will allow you to earn much more in the long term than by directly investing these 100 euros in any stock.
Choosing the right investment tools
Stocks, bonds, and other financial instruments like ETFs (exchange traded funds) are available to investors. Choosing wisely, even investors with a restricted budget can participate.
Select financial products suited to your initial capital level, such as ETFs that offer diversification and low transaction costs.
Online trading platforms simplify access to financial markets for everyone.
With 100 euros, it is possible to create an account with different brokers like eToro which offer low-cost or no-fee transactions on certain products.
Possible Strategies to Maximize a Small Investment
With modest initial capital, favoring a prudent investment strategy is vital.
The concept of progressive investment, or DCA, can be wise, rather than risking all your capital in a single transaction, you can spread it over several opportunities.
Some platforms allow you to purchase fractions of shares, so even an investment of 100 euros can be diversified across several companies.
The main mistake to avoid is impulsiveness. For example, engaging in high-risk investments without fully understanding the risks. This is why investing in your knowledge will prevent you from losing all your capital on a poker game.
Think long term
Considering a long-term investment plan could significantly help the performance of the initial 100 euro portfolio.
Systematically reinvesting even small gains and taking advantage of capitalization transforms small amounts into considerable amounts over time.
Adopting this patient and disciplined vision requires resisting the temptation to withdraw profits as soon as they appear and paying attention to transactions consistent with previously defined personal financial objectives.
