Introduction to Stock Investing
So everyone’s talking about investing in stock but you’re not sure where or how to start. I understand how overwhelming stock investing can seem and I’m here to help you get started. On episode 9 of thenetworthy “My Stock Ben Going Up Like a Crescendo” I break down some stock market terminology & take you through some different investment options. But at some point we have to make the leap from talking about it to getting started.
Sign Up & Get Your Free Stock
This wonderful technology dependent time we live in has made stock investing more accessible for the average person. We’re now able to dabble in the stock market from a app on our phones. There are a few options that allow you to get started, I recommend and personally use Robinhood. When signing up for Robinhood through my affiliate link you will receive a free share of stock. I recommend looking around for other options, but Robinhood is free & beginner friendly.
Research, Research, Research
It is SO important that you do your research before buying any shares. Don’t just buy stock because your friend bought in or because someone on Instagram told you to do so. Take time to look into the company you are considering investing in. Check their past performance, see if they pay dividends & how much. See how they’re performing in the current market & how experts expect them to perform moving forward. Places like marketwatch make for good resources during this step. But Google will be your best friend. Publicly traded companies also release annual reports for their shareholders. and yes, shareholder sounds so fancy but once you buy stock in that company you are technically a shareholder. They grow up so fast.
Buy Low, Sell High
A huge mistake beginners make is buying into a investment when it’s at it’s peak. Remember when bitcoin was a big thing a few years back and it seemed like they gained popularity overnight. Suddenly people were getting rich off of what? A COIN? People rushed to throw money into bitcoin at it’s spike. Once bitcoin started tumbling people got scared and pulled what they could out of the market. BUY LOW, SELL HIGH. Buying high and selling low only leads to loss. When you log into your Robinhood account and see red, don’t freak out right away. Your stock will have good days & bad days, chances are if you ride out the bad days you’ll set yourself up for profit. Selling when you’re in the red only locks in your losses. Give your stock time to turn itself around… unless you truly believe it won’t and then, good luck charlie.
Diversify
Do not put all of your eggs in one basket! Diversify your portfolio. Invest in different companies, in different types of stocks, bonds & commodities. Diversifying helps to reduce your risk. If you invest all of your money into Apple and Apple crashes tomorrow you will be a very unhappy fruit picker. Okay I’ll stop with the dad jokes but you get my point. Diversify your portfolio like it’s the stock photo on the home page of a tech companies website who is currently getting lit up on twitter for having a all white staff. Your coins depend on it.
Do Not Invest Money You Can’t Afford to Lose
Last but not least, do not invest money you can’t afford to lose. I personally do not recommend investing until you have a $1,000 emergency fund and a safety net that could cover 3-6 months of your expenses in case you lost your job tomorrow. But I know you’re hard headed and so am I. So at the very least do not invest your rent money, your grocery money, your mommas hair money. Make investing apart of your budget. I set aside a certain amount every week to go into my robinhood account. That way there’s never any surprises.