What are your thoughts on the stock market?
Is it only for people with money?
Is it only for the greedy?
Is it something you would like to think about doing “some day”?
Does just the thought of it scare or overwhelm you?
I get it. The stock market can be scary. All those weird terms: puts, calls, capital gains, dividends, basis… it is a foreign language.
I am here to tell you that you can invest in the stock market.
Right now.
Even if you only have a few dollars in your wallet.
Everyday men and women, just like you (and me) can invest for as little as $5. Here’s how:
1. Open an online brokerage account.
Do a little research to determine the best one for you.
2. Transfer funds to your online brokerage account.
Depending on which online broker you go with, you may have a minimum or you may be able to transfer exactly how much you want to invest. ***Do not invest any more than you can afford to lose.***
3. Decide which stock you want to purchase.
This is an area that is really easy to get stuck in the weeds on. The easiest way for beginners to get started is to choose a company that (a) you personally know, like, and trust, and (b) would be missed if it disappeared tomorrow (the Motley Fool “snap test”).
4. Create the order to purchase the stock you want.
You will have to know the stock ticker symbol of the company you want to invest in. You can find it by googling “[company name] stock symbol”. If your company is owned by a parent company you may have to search for “who owns [brand]” to find out. You might be surprised to discover which companies are owned by other companies! There is the chance the company you want is not publicly traded. In this case, come up with a different option.
5. Watch and see what happens.
Invest for the long term. Stocks will go up and go down. Trying to “beat” the stock market is a good way to drive yourself crazy. If you feel a company is on the way out, sell it. Otherwise, watch and see what it does. It is a bit like a roller coaster, but it can be very rewarding. Just remember, not every stock will make you mega rich- especially those early “safe bets”. Hopefully, over time, your gains outweigh your losses and your money grows faster than inflation.
6. Learn a little at a time.
Like any foreign language, it is going to take a little time to learn the lingo. Start by looking up terms you are being asked about as you make your purchases. Expand from there as you start to venture out and expand your comfort zone.
7. Repeat- and expand.
Once you have made that first purchase, start thinking about what you want to buy next. Maybe get your spouse or the kids involved. This is a great family activity that your children may benefit greatly from in the future.
I have been thinking about putting together an investing club where members can discuss their questions, concerns, and experiences. Would you be interested? Please email me. If there is enough interest I will set it up!
Also, if you want to DIY it, but would like to know a little more before getting started, you can find the Effortless Investing mini e-course at https://www.howtobeamoneymaster.com/effortless-investing-online-course/