The Absolute Beginner’s Guide to Start to Invest in Stocks
Financial Foundations
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Financial Foundations •
Recipes for Financial Foundations: Investing
“I am COMPLETELY new to investing and have never sold or bought a stock. How do I even start??”
We get this question a lot and agree that most beginner’s advice skips this step and typically starts talking about types of stocks to buy. This is for those who are completely new to stock investing — you want to start, but what the heck do you even need to do or to think about? We’ve got you covered.
Starting your journey into the world of stock investing is both exciting and a big step towards your financial goals. Here’s some simple, straightforward things you can do to get started:
1. Educate Yourself:
Start with the basics. Understand what stocks are, how the stock market works, and the different types of investments (like individual stocks, mutual funds, and ETFs). There are plenty of resources online, including websites, YouTube channels, and podcasts dedicated to investing for beginners. To get started with stock investing and make your first informed trades, you can sign up for our upcoming virtual BootCamp: Get Started with Stock Investing 101: The ‘Everything’ Bootcamp.
2. Set Your Investing Goals:
Think about what you want to achieve with your investments. Are you saving for retirement, a home, or maybe an emergency fund? Your goals will influence the types of stocks you invest in and your strategy.
3. Create a Budget:
Decide how much money you can afford to invest. It’s crucial to ensure this is extra cash that you won’t need for immediate expenses. Never invest money that you can't afford to lose.
4. Open a Brokerage Account:
To buy stocks, you’ll need an account with a brokerage firm. There are many options out there, including online brokers that are user-friendly for beginners. Look for one with low fees, good resources, and strong customer support.
5. Start Small:
You don’t need to invest a lot of money right off the bat. Many online brokerages offer fractional shares, allowing you to buy a piece of a stock if you can’t afford a full share. This way, you can start small and gradually increase your investment over time. Even if it is $20 or $200 or 1 share of stock, it’s not as important how much you buy, as it is to make your first trade and get started.
6. Diversify Your Portfolio:
Don’t put all your eggs in one basket. Investing in a mix of stocks and other assets can reduce risk. Consider starting with mutual funds or ETFs — Exchange-Traded Funds (like a basket of stocks in one), which automatically diversify your investment across many stocks, and are beginner-friendly.
7. Keep Learning and Stay Patient:
Investing is a long-term game. The market will go up and down, but staying informed and patient is key to seeing your investments grow over time.
Remember, every investor started somewhere, and it’s perfectly okay to take it one step at a time. If you have more questions or need personalized advice, don’t hesitate to reach out to us. If you’re ready to get started with stock investing and make your first informed trades, you can sign up for our upcoming virtual BootCamp: Get Started with Stock Investing 101: The ‘Everything’ Bootcamp. Happy investing!
Taking Tiny Action Today: A small step
We can take a moment to search and compare brokerage accounts. Many will let us open up the accounts online. A great rule of thumb is to look for one with low fees, good resources, strong customer support, and an easy to follow digital experience.
To get started with stock investing and make your first informed trades, you can sign up for our upcoming virtual BootCamp: Get Started with Stock Investing 101: The ‘Everything’ Bootcamp.
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