This is how a beginner in the stock market could start investing with £ 2 per day

Entering the stock market does not take a couple of millions of pounds, not even a couple of hundreds of thousands. In fact, he doesn't even take a couple of thousands. It is possible that a beginner in the stock market begins to invest with only A couple of pounds a day. Just so.

A regular investment habit

Leaving aside £ 2 a day could help form a long -term regular savings habit. The money could soon add. In a year, it would provide £ 730 to invest. In addition to that, £ 2 is just an initial amount. Over time, an investor could choose to put more if their finances allowed it.

An obvious first movement would be to establish an account account of Isa's actions or actions and actions and start putting money on that regularly.

Investigate

Before putting money in the market, it is worth spending time to get more information about how the stock market works.

For example, an inverter must understand ideas such as reducing risk through diversification (more difficult in a very small budget, but still possible and important). And why the valuation matters not only how strong it is a business and how to be a good investor.

Find actions to buy

Then, they could start looking for actions to buy. When they begin to invest (and beyond, in many cases), investors can overestimate their level of ability to choose shares and underestimate the possible impact of risks.

So I think you can pay to start with a more conservative approach focused on wealth retention rather than aim at the creation of dramatic wealth.

As an example of an action that an investor should consider, he would point out J Sainsbury (LSE: SBRY).

The demand for groceries is large and resistant. Sainsbury's can effectively compete in that market, both online and offline, thanks to a strong brand, a large customer base, a well -developed loyalty scheme and a store ownership.

It has a dividend yield of more than 5%.

I see risks. The groceries industry is highly competitive and pressing the profit margins. The company's plans to reduce costs by getting rid of a lot of personnel could damage customer service, which leads to some purchases elsewhere.

However, in the long term, I believe that the perspectives for the Ftse 100 The retailer looks decent.

Be realistic about expectations

With a yield of 5% or so, invest £ 2 per day for a year could gain just over £ 36 in dividends annually. Dividends are not the only approach when people begin to invest, since growth can also be important. Individual investors can decide their own approach, between growth and income shares.

That £ 2 per day, even in a matter of months, could be generating more money in the form of dividends. By plowing that, continuing put £ 2 per day (or more) and buying actions to maintain in the long term, I think someone could start investing now without experience and potentially build the basis for the creation of wealth in the coming years.