Investing independently – simply follow these five steps

Many investors let experts make investment decisions for them. Would you prefer to take control of your assets yourself? Have you pretty much worked out your investment strategy and do you feel ready to put it into practice yourself? Then simply follow these five steps to invest independently.

Step 1: Decide on the form of your investment

• In addition to savings accounts, investors can invest their money in tangible assets and securities. Diversification is a key component of a successful investment strategy. Find out more in our article “Diversification: why is it important?”.
• There are various types of securities, such as shares, bonds or fundsor cryptocurrencies . Every type of investment comes with its own opportunities and risks. For example, gains may be higher on shares if their price rises sharply – but equally, the same applies to losses . In contrast, funds automatically invest in various assets, which reduces cluster risks and generally results in lower fluctuations .

Step 2: Find the right platform

Would you like to invest in shares yourself? Anyone who wants to invest and trade in securities independently can do so via online trading. There are many online trading platforms. They can differ in terms of their user interface, functions, fee structures and the stock exchanges they offer. With a bit of research, you can find out which platform best suits your needs. E-trading gives PostFinance customers access to a modern, intuitive online trading platform.

Step 3: Find out about costs and fees

As an investor, you also need to take account of the different prices and conditions of the online trading platforms. Compare the fees you have to pay for custody account management or individual transactions (trades). High costs can significantly reduce the yield on your investment. But other criteria need to be checked besides costs, such as the range of services, the provider’s domicile and the regulations the platform is subject to.

Step 4: Take well-informed decisions

If you’re planning to invest independently, you’ll need to be well informed. You should note the following points:

• Define your investment strategy: if you’re investing your money yourself online, you should also define an investment strategy and stick to it.
• Spread your risk: are you adopting a high-risk approach in the hope of higher returns? Or is the prospect of high returns less important to you because you prefer to err on the side of caution? Regardless of whether the strategy you are implementing is more conservative or higher risk: diversify your portfolio to spread your risk. Find out more about diversification in the article “Why is diversification important?".
• Keep a close eye on the markets: those who want to want to trade securities themselves need to regularly and continually track the financial markets.
• Order types: if you’re investing in shares, for example, you need to become familiar with the various order types. How do they differ from one another? Which ones are available to you? Find out more in the article “Market orders, limit orders, stop orders etc..”.

Step 5: Stick to your strategy

Especially if you are focusing on shares, you should try to define a long-term strategy and stick to it, even when times get tough. A long-term approach will generally pay off here. You’ll find comprehensive information in our article “What is investment strategy?”.

Invest flexibly – in a way that suits you

Investing in securities independently isn’t that complicated.

Whether you want to put together your entire asset portfolio yourself or trade individual securities in a targeted way: you can do both. Long-term investors often follow what’s known as a core-satellite strategy – combining a broadly diversified core portfolio with selective satellite investments.

Digital services give you precisely this flexibility: you decide how actively you want to invest – based entirely on your risk capacity, risk appetite and investment horizon.

Find out more in our blog post “What type of investor are you?”.