Want to invest in the stock market but don’t know where to start? Our 12 practical and easy-to-implement tips, available in video and infographic form, will help you make the most of your stock market investment.
Also, check out our presentation of the various financial products for beginners to invest in the stock market, the different envelopes that allow you to do so, the characteristics of investing in SME shares, and investing in responsible finance (SRI). The vocabulary yoy need to know to get started in the stock market, our infographic on the 12 commandments of stock market investment, and our comparison of the best stockbrokers will also help you see things more clearly.
Also, discover our recommendations for investing your money during times of crisis, when markets are more volatile and the threat of recession looms, or when markets are at their peak. We’ll also present the assets to consider for investing in the stock market in 2025, solutions for investing in the stock market on a shoestring budget, and different ways to protect your stock portfolio.
Finally, we will decipher for you the developments to be expected on the stock markets for the year 2025, taking into account in particular the political risk and the dichotomy observed between the American and European stock markets.
Several videos complement this article. Are you wondering: why invest in the stock market? Or when to invest in the stock market. Discover our video answers.
Investing in the Stock Market 5 Key Things to Remember
1. Why is it essential to invest in the stock market for the long term?
With the stock market, there is a risk of capital loss, which is even more prevalent the shorter the investment horizon. This is why it is essential to invest money in the stock market that you won’t need right away. The longer your investment horizon, the lower the probability of loss.
2. Why choose DCA for your investments in the stock markets?
To further reduce risk and benefit from the very attractive long-term returns of stocks, it is recommended to invest small amounts, at regular intervals, over long periods. Thus, to avoid entering at a peak, it is better to invest 1,000 euros by placing 100 euros every month for 10 months than by investing 1,000 euros all at once. This is called DCA, for “Dollar Cost Averaging.
3. Why is it essential to determine your investor profile before investing in the stock market?
To know which assets to buy and for how much, you’ll first need to understand your investor profile, particularly your risk aversion. The more risk-averse you are, the smaller the portion of your assets invested in investments with a risk of capital loss should be. But be careful, it shouldn’t be nonexistent either. Cautious investors may choose to delegate their management or, conversely, invest themselves in major stock indices, such as through ETFs. Those less risk-averse may opt for selective stock picking, including growth stocks in exotic markets or turning to small and midcaps.
Be careful to also take into account your knowledge of a sector or a geographical area, but also, more generally, whether or not you are comfortable with the basic concepts of economics, accounting, and finance. All these parameters will lead you to favor a certain type of security.
4. How do you choose your budget for investing in the stock market?
In France, the PEA (Share-Investment Plan) offers a very advantageous tax framework to stock market investors, who benefit from a complete exemption from capital gains tax after holding the plan for 5 years. Social security contributions are still due, however. This means that your gains will be taxed at only 17.2%. Also, note that there is no tax if you don’t withdraw the money from the plan, even before holding the fund for 5 years. Therefore, the PEA seems to us to be the essential fund for investing in the stock market. In addition, more experienced investors can turn to the securities account (CTO) to invest in foreign markets and develop sophisticated strategies. Investing in the stock market, although with a much more limited selection of securities, is also possible through the units of account of your life insurance or your PER (Per-Share Plan) for those who don’t want to multiply the funds.
5. How to choose your stockbroker?
You should also consider choosing a stockbroker if you’re investing through a securities account or a PEA (Share-Investment Plan). It’s possible to open one of these accounts at your bank. But while online banking offers are generally quite adequate, traditional banks’ offerings are far from attractive. Don’t hesitate to look at online brokers. Beginners should choose brokers who also allow them to develop their investment skills with educational content. Make sure you’re comfortable with the interfaces offered so that order placement is seamless. Also, check that you’ll have access to the markets and securities you plan to invest in, for example, if you plan to buy exotic stocks. Finally, compare the prices of stockbrokers who meet all the criteria presented above.
Comparison of the best stockbrokers for investing in the stock market in 2025
Discover our comparison of the best stockbrokers and the financial intermediaries with whom you’ll open the envelopes to house your assets. To do this, you’ll need to consider your investor profile carefully. You’ll need to pay particular attention to the assets offered and accessible stock markets, as well as the trading tools available, the educational materials provided, and, of course, the rates charged.
What is investing in the stock market?
Investing in the stock market means buying shares in listed companies, that is, acquiring ownership interests in businesses. Each share represents a portion of the company’s capital. The share a partner holds in the company is proportional to the number of shares in that company they own. When you buy a share, you become what is called a shareholder, which means nothing less than you become a partner in the company.
Why is investing in the stock market interesting for investors?
Is investing in the stock market a good idea? At Café de la Bourse, we believe that investing in the stock market is a wise idea for all investors over the medium to long term.
There are two main reasons for investing in stocks. First, investing in the stock market means investing in the real economy to become an active member and participate in the development of companies. A company that issues shares sells shares of its capital to investors to raise funds to finance its growth. This money can, for example, be used to expand internationally, launch research and development (R&D) projects to create new products or improve existing products, hire staff, etc.
Then, investing in the stock market is also, and above all, taking advantage of the very attractive return that this asset class provides over the long term. The performance of stocks over 10 or 30 years even makes it the most profitable asset class over the long term. Thus, according to the Institute of Real Estate and Land Savings (IEIF), at the end of 2023, stocks have, on average, returned 9.9% each year over 15 years, performances that amount to 12.4% per year over 40 years. Be careful, however, to succeed on the stock market and position yourself on the most attractive values, it is advisable to familiarize yourself with the financial markets and follow some advice to hope to hold and manage a portfolio delivering a good returnabouto the risk.
Who can invest in the stock market?
Anyone can invest in the stock market. At least in theory. This activity is open to individuals, institutions, and businesses. However, you must be of legal age. However, from the age of 18, it’s possible to open all investment vehicles, including life insurance, securities accounts, and PEA (the PEA jeunes allows 18- to 25-year-olds who are part of their parent’s tax household to hold a stock savings plan in their own).
Be careful; just because anyone can invest in stocks doesn’t mean you should invest in any way. It’s essential to be well-educated and understand how the financial markets work. Some financial influencers, under the guise of democratizing investment, tend to give very questionable investment recommendations or even scam their followers. This is why it’s so important to be educated and understand how the stock market works, but also to know yourself well and establish your investor profile. This guide to investing in the stock market will allow you to put all the chances on your side to succeed in your investments in the stock market.
