How To Invest In The Stock Market – Advice From Real People For Real PeopleJul 7, 2020
A couple of years ago, I decided I wanted to learn how to invest in the stock market.
I’d grown up around it my entire life. My dad would invest in the stock market and teach me a few things from time to time. My husband currently invests in the stock market and so does my older brother.
But one day, I just decided that I needed to learn more about the stock market and how to invest properly, for myself. If anything happened to Paul, I wanted to be able to make wise decisions regarding our investments without someone else’s input.
The stock market is always changing and no one can know every single thing there is to know, but we can all learn…
Here are quick tips from myself – as well as – real men in my life regarding investing in the stock market. This is for beginners only.
STOCK MARKET TIPS FROM ME:
Become well acquainted and knowledgeable about the company you are investing in. Buying a share means you are a part owner of that business.
See this as an opportunity for long term growth – investing properly into the stock market is not a get rich quick scheme.
Make a pros and cons list about each company you invest money into. If the cons include huge changes in the company like: a large competitor is beating your company more and more each day or the business model changes or the executive team is leaving…it might be time sell.
Stock Market Tips from my husband:
Buy a simulation software to learn before you use real money. An example of this would be from Ameritrade, E*TRADE, or Fidelity.
Find a mentor who has more experience investing and learn from them.
Create a brokerage account you can consistently transfer money to each month designated for investing only.
Only invest money you will not need for any other purpose. Once it’s invested, treat it like you no longer have it available to spend or access for other reasons.
When purchasing stocks, pick companies that are large, stable, and offer dividends. Companies with a share price above 20 but below 150 are established enough to not go bankrupt but still have room to grow. (Dividends are a set cash payment a company will pay shareholders 4 times a year).
Buy stocks when the share prices are down and sell them when the share prices are high for what is called a “capital gain”.
Stock market tips from my dad:
Know why you are investing (retirement, home purchase, college fund) this will help you remain calm during the inevitable market turmoil when you can see how distant your money need is.
Let your winners run, you could have bought a chip stock, NVDA for $14 a share during the 2008-2009 Great Recession. It was recently priced well over $300 a share with bright future prospects as well.
The stock market historically averages around 7% a year, dating back to the 1900’s, so buying a mutual fund that “tracks” the overall market may work well for you if your time and expertise level leaves you filled with trepidation.
Google and read Warren Buffet’s top ten pieces of investment advice. Print a copy and read it frequently.
STOCK MARKET TIPS FROM MY BROTHER:
The best stock tip I ever received (from a professional trader): if you get a tip to buy a stock, short it!
Here is a comprehensive, step-by-step guide, on how to invest in the stock market for beginners.
Disclaimer - none of the information contained in this article should be considered an encouragement to invest. Investing can be highly risky and is not for everyone.
Thanks! This information is very helpful.