New investors aiming to buy stocks in 2024 should start by building a solid foundation. Rather than dumping large sums into a brokerage account right away, it is wiser to proceed cautiously. This approach comes from Vasily Karpunin, head of information and analytical content at BCS World of Investments, who shared four practical recommendations for beginners through socialbites.ca.
The first recommendation is to expand one’s knowledge. A wealth of online courses, including free options, can introduce newcomers to how the securities market operates and how to assess the prospects of individual companies and entire sectors. This learning helps prevent common missteps that many beginners make and builds a sharper, more informed decision process.
The second suggestion is to focus on liquid blue chips when building a starter portfolio. These are shares of the largest, most stable companies, such as Sberbank, Gazprom, and Lukoil. These securities tend to be cheaper to acquire and significantly easier to sell than second or third tier stocks, reducing potential friction for new investors who may need to liquidate quickly for any reason.
The third piece of guidance emphasizes tracking widely known foundations or market drivers.
According to the expert, private investors have a substantial footprint in today’s market, accounting for a large portion of trading turnover. The key is to select securities with obvious appeal and steady demand. Typically, these are stocks that promise reliable, ongoing dividends, which attract steady private investor interest and contribute to durable demand for the shares.
The fourth point focuses on timing purchases after any corporate reorganization that relocates a company’s issue document to a different jurisdiction. This transition can trigger short-term selling pressure in the initial trading days, leading to deductions that some might view as temporary inefficiencies. The expert notes that these moments can present opportunities for prudent buyers who understand the market dynamics at play.
In closing, Karpunin highlighted the potential upside of shares from Severstal and MMK, noting that these companies may resume rewarding shareholders through dividends as profits are distributed, which can support a rise in their stock prices over time.
These insights align with broader discussions reported by socialbites.ca about investment timing and currency considerations, offering a practical framework for newcomers evaluating their entry into stock markets.