Stock Market 101 – How To Start Investing In Stocks For Beginners

Stock Market 101 – How To Start Investing In Stocks For Beginners

In order to invest in stocks, one must learn how to invest in stocks. Investing in stocks has been simplified as companies have made it possible for investors to start an account through a website or mobile app. Stock investing is an excellent tool to grow wealth longterm. Begin your investing journey off by learning how to buy stocks with this beginner information at hand.


Decide how you want to invest in stocks. There are many ways to go about investing in stocks such as buying stocks yourself through a broker, or by hiring a financial or rob-advisor to buy them for you. The best approach would depend on the amount of effort and guidance you would like to invest.


Open a brokerage account. To invest in stocks, you need an investment account. For the investors that are hands-on, this means opening a brokerage account. For the investors that need assistance, opening an account through a robot-advisor would be another option. Both investment accounts allow investors to open an account with very little money.

Image via Digital and Radio Facts


Know the difference between these two investment types: stock mutual funds and individual stocks. When you invest in a fund, you also own small pieces of each of those companies. Individual stocks are specific companies where you can buy a single share or a few shares.


Set a budget. To invest in an individual stock, it depends on how expensive the shares are, shares can range from a couple dollars to a couple thousand dollars. Mutual funds often have a minimum of $1,000 or more, so if you have a small budget, an exchange-traded fund may be your best option since they’re traded like a stock, purchasing it for a share price for as low as $100 or lower.


Avoid the habit of checking how your stocks are doing multiple times a day, everyday. Don’t look at them. Revisit your investments a few times a year to make sure you’re on track with your investment goals.


For more information on how to properly get set up investing, inquire with @theinvesther_ on IG. 


Feature Image via Forbes

Post a Comment