Having clicked on this I’m sure you’re expecting a spectacular adventure on my experience in the stock market and my “get rich quick” scheme. At the expense of that first sentence, I’m sure you’re now thinking this is click-bate and you feel quite deceived. Well the truth is, it was in fact click-bate, and the harsher truth is that there is no happy get rich quick scheme in life. I hate to disappoint, but don’t click away yet, because I am going to offer advice on personal betterment and low risk financial advice.
A couple months ago, I became very interested in the stock market. I spent a month researching how it works and took advice from many different blogs, websites, financial gurus, and YouTubers. A lot of them had a similar “Never work a day in your life and earn $250,000 by age 25” kind of motivations, but I didn’t buy into any of that, and neither should you. What IS important, is the knowledge and the message. So after researching for a month, what happened? Well, in short, I bit the bullet and opened up a personal brokerage account. Once I made the initial investment, that’s when I began to really learn how it works. And so will you. At first I lost a tiny sum, (I lost 8 dollars out of fifty in my initial learning process) but I gained it back fast and learned really quick not to sell a stock just because it looses in value, because that’s money that you lose; a rookie move which ill explain further later in the article. At this point, you may be thinking that I’m a novice stock investor, so what advice could I possibly give to you?
In my defense, there’s a reason you clicked on this. Perhaps you know me personally, (Thx) or maybe you for some reason were enthralled to hear a strangers stock adventure story, (Odd choice, but Thx again). OR more than likely, you are curious to get involved in stocks like I was and are a little scared to begin. So fret not and curb that fear because here’s what you should do.
Research research research! Reading this is a great start. it shows that you’re interested and taking it seriously enough to put time into it. I found out what other people look for in company’s to invest in. I also took into account the company’s that I personally support and asked myself, “Why do I support them? Can I see them growing and getting bigger? If the answer is yes, then invest” just do the research and ask questions. Blindly investing at random is a total gamble. You might as well just go to a casino. The stock market is similar to gambling, but more tactful and the odds are in your favor as long as you stay attentive. Also, keep in mind; you don’t have to be wealthy to invest. I personally look at it as a savings account that increases in value more quickly, but can also sometimes decrease in value. In all actuality, I’m very poor and well under the poverty line, so buying thousands of stocks are out of the question, and high end stocks like amazon or tesla are also out of the question. My goal at the moment is to buy cheap stocks and to pay attention to trends so that perhaps one day I can begin to make money off of my investments. This is another very important point; know your goals with investing. Identify what you aim is and try to reach for that. There is more than one way to invest; it all depends on what you want your outcome to be.
The next important step is knowing how to invest. or more importantly, where. You could always get a stock broker to invest for you, but that could cost money, not that theres anything wrong with that. They are trained professionals, i personally just find it fun to invest myself. Robinhood is what I use. It’s an app that you can download on your phone, and updates in real time. It’s safe and cost free. I took an initial $50 to invest and dispersed that around different companies to see what happens. My first mistake was as soon as a stock would go down I’d get scared and end up selling for less than what i bought the stock for. This is the move that made me lose that $8 in the beginning. Really, basic math is why I lost money, which is all it takes to join the stock market. You don’t really need to have economics knowledge to get started.
The stock market fluctuates. It’ll go down and then it’ll go back up again. Pay attention to your buying price and sell when it is higher. Reinvest if you want, but if you begin reading articles saying that it’s a bad investment and you agree, maybe cut your losses and invest somewhere else. Just dont hold yourself back from getting started thinking you’re going to go broke over night. Again, the stock market doesn’t quite work like that. It may be dynamic, but most companies don’t just suddenly go bankrupt overnight. If that is at risk of happening and you’re invested, then that is the point of having a diverse portfolio.
Portfolio diversity means being invested in different companies, markets, and fields to reduce the risk of loss. Don’t put all your eggs in one basket. The idea of investment means that if a stock goes up 50 cents, than you just made 50 cents. If you own two stocks, then you just made a dollar. Cool, right? But the opposite is also true. If the stock goes down 50 cents and you own four stocks, then you just lost two dollars. It isn’t much money at all, but that’s how the stock market works. It fluctuates cents at a time. so that’s why you’re not suddenly going to lose all your money and that how people actually make lots of money off of stocks. They buy thousands of shares in a stock and allow it to increase in value over time. It takes money to really make money. But again, don’t sweat the small stuff. Treat your investments like your savings and let them increase in value. Over time keep adding money to your account and you’ll be in big business in no time.
Overall, you don’t have to be a genius to invest or to understand the stock market. I’m by no means a genius. I’m just your average Joe. I don’t make a lot of money; in fact, I canceled my gym membership just to save money to invest. In all actuality, the stock market is very similar to the gym. You can understand all the information you want about working out and different muscle groups and all, and that will definitely help, but once you start to lift for the first time, or begin whatever exercise path you have, you start to really learn the process from a very different perspective. So in the end, it’s never to early, nor to late to invest. And this doesn’t just include the stock market. Invest in yourself. Get involved with many different facets of your being and take lessons away from all the different adventures of your life as it can only benefit you in the end. Just understand that it can be dangerous to be tied down to one frame of thought or perspective. The more open you are, the better off you’ll be, and as always, betterment should always be the goal.
So as always, be sure to enjoy life to the fullest.
Thanks for following along and peace out.