let’s talk money…
investing for beginners
tips on investing in the stock market
why should you invest?
if you take a look at the stock market over several years… you’ll see that the market is in a constant trend upwards. below, you’ll see a graph of the dow jones over the last ten years. there are two major dips from the ‘08 recession & the market impact of the pandemic in 2020. even with these major market shakeups, the stock market is still trending upwards. what does this mean for you?
if you can allocate part of your savings/income into stocks, you could potentially see a percentage gain in long-term investments based on historical performance of the stock market.
so what does investing mean?
what does it mean to purchase stock in a company? a stock is a form of investment in a company - you are purchasing a part of the company which is defined as a “share”. investing in a stock is an investment in the company’s profits & ultimately their performance is your gain (or their loss can be your loss). public companies will allow their stocks to be purchased in the stock exchange like nasdaq or nyse. stocks can be risky… as some companies could lose their value over time. investing in stocks can also have major rewards… you can make money from stocks when the stock increases in price over time & you sell the stock for more than what you purchased for. some stocks also pay dividends (payments made to their shareholders). it’s always important to remember…when you purchase a share, you are owning a part of the company’s profits.
how i began
i’ve gotten quite a few questions around how to begin investing in stocks & recently posted my first reel (harder to make than i anticipated haha) on investing. you can begin investing with really any budget you’re comfortable with. i started investing after i graduated from college with $250 & put all of that money all into Tesla (now worth over $2,000). if you are just beginning & have less than $100 ready to go, you can definitely get started! it’s really up to you & how much of your income you’d feel comfortable losing (in case the company doesn’t perform well). i wouldn’t put my whole savings into the stock market… it does have its risks, so you’ll need to use your best judgement on what you’d be willing to lose. i personally put about 3-5% of my monthly income into my portfolios. with my first stock being tesla, i’ve held onto that stock since 2017 & have seen a 200%+ gain with a stock split earlier this year (1 share turned into 5 shares). this has been $$$ saved up over time & now in my savings while doing essentially nothing, but watching the stock grow in my portfolio.
click on the image if you’re interested in watching my reel!
where you can begin
first, let’s pick a brokerage account! i personally use both charles schwab & robinhood. some brokerage accounts will require an account minimum & some will allow you to create one for free. i would do your research on which account may be best for you & what you’re looking for out of your investments. if you’re a beginner & looking to get started right away, i would begin with robinhood.
robinhood makes investing easy, simple & intuitive while having a mobile application to invest on the go.
you can also begin investing with any amount you’re comfortable with while getting started with robinhood. they offer a great referral program where if you refer a friend, both yourself & your referral will receive a free stock. another key benefit of robinhood that i’ve seen over other accounts is that they give you immediate access to funds. most brokerage accounts will take 5-7 business days to transfer money out of your everyday banking account into your investment account. robinhood will give you immediate access to $1000 of your transfer before your funds are fully transferred. learn more about instant access to robinhood deposits here. another great benefit of robinhood? they just launched fractional shares! this means that you can now purchase a fraction of a share if you can’t afford the full share, but believe in the future of the company that you’d like to invest in. at the end of the day, your brokerage account is up to you & what you feel comfortable with. :) feel free to leave a comment if you have any other questions/concerns.
my tips & tricks
so all this sounds exciting, right? well, yes it’s money! i’d like to share some tips & tricks that i have found to help build up my portfolios:
i use market watch notifications (free, just add an email) to stay up to date on stock market news & find stocks to look out for.
you can sign up for inside alerts (free, just add an email) to stay up to date on business news/emerging technology.
I have recently purchased a subscription to motley fool stock advisor, which is focused on long term investments… where David & tom provide everyday advice on stocks to purchase/look out for.
on robinhood, i create watchlists & follow stocks that i read about in the news that are up & coming. this allows me to have insight when a stock is at an attractive price that i’d like to purchase the stock at.
always do your research! you can use resources like yahoo! finance, metastock, bloomberg.com, seeking alpha & much more.
diversify your portfolio! look at stocks ranging from technology, consumer products, therapeutics, renewable energy & healthcare.
