I was talking to a close friend of mine a few days ago and he told me this. “I want to start investing but I just don’t know where to start.” This is when I finally realized, we have been talking so much about strategies, news, and answering why you should invest. But, we have hardly ever spoken about HOW to start when it comes to the stock market!! To my friend, I hope you’re reading this right now…
What are stocks?
Stock or (shares) of a company is essentially a percentage of ownership for that company. 1 share of stock is part ownership in a company. Yes, when you buy Apple’s stock, you own an extremely small percentage of Apple. Do yourself a favor right now and search up, “Who owns Apple”? 40% of Apple is owned by investors like you and I, the other 60% is owned by the “higher ups” like Tim Cook, the CEO. This means 40% of Apples shares are owned by individual investors, the other 60% is owned by CEO’s, CFO’s, and COO’s.
Why put money into owning stocks?
To grow. your money
When a company decides to go public, they have a plan to GROW their business immensely. Public company: When a company goes onto the stock market and gives out shares to the public.
When people invest their money into a companies shares, this then gives the company more money to work with and grow themselves.
If a company is showing signs of growth & profitability, it is reflected into their share price. Because the shares now become a supply & demand case, driving the share price up. If more people want a companies stock, guess what the seller is gonna do? Yup, raise the share price.
Bottom line. If you investing into profitable & growing companies, your money will grow along with them.
Stocks are guaranteed to grow your money.
Look at a chart of any company that continues to expand their service/product & increase profits. If you just buy and hold their shares at any point, you will make money in the LONG-TERM.
The key is to NEVER SELL when investing for the long-term. When people lose their money in the stock market it is for the sole reason they sold early. Or invested into companies that decreased profits.
Talk to anyone with a general understanding of the stock market. They will always tell you the same thing. Buying and holding won’t loose you money.
Where to start
On our “Get Started” page we have a list of our favorite platforms to invest. For long-term investing, I recommend M1 Finance or TD Ameritrade. I use both for my 2 long term accounts where I hardly ever sell my shares. They’re super easy to use and display graphs of all your investments. Which is something I can’t seem to find on any other platform.
Once you make an individual account, fund it with money!
Things to do once your account is funded
1.) Invest into companies that you use regularly. I always recommend buying into companies that I use myself. For example, I have shares in Microsoft and Apple because I use their tech every day of my life.
– Put about 70% of what you initially funded into buying shares. Save the other 30% for buying opportunities and market dips.
2.) Make sure to have a percentage of your portfolio dedicated to an index fund or multiple. I recommend having about 15-25% invested into one or more of these funds. $VOO, $SPY, $QQQ, $VTI.
– Index fund: A stock you buy which is a collection of companies put into one holding. When you buy a certain index fund, you are buying very tiny portions of several different companies. These are very safe and conservative assets, which will give your portfolio security.
3.) Follow our site every day to keep up with our personal stock picks, new strategies to follow, and our callouts for buying opportunities!
4.) Set up a payment plan every single month, funding your account with a certain amount of money. Every month I put a combined $300 into my stock portfolios. It’s an amount I am comfortable with, and I know I can sustain it.
5.) Have an open-mind to investing in companies you do not know about. In the future, we plan to fully analyze stocks we find. Showing why we think they will grow, as well as showing you the numbers and facts to back up our theories.