Let's break down the basics.
When I first learned about investing on the stock market, I was overwhelmed to say the least. How could I buy something that I couldn’t see or touch on a virtual market? How could I ever make money from this purchase? As I began to understand more about the ins and outs of investing, the whole process became more clear to me. I began to use the stock market in a way that worked for me, my risk comfortability, and my budget.
It might seem like there’s a huge learning curve to start investing in stocks, but I’m here to tell you that anyone can learn to invest successfully, and now is the time to do it.
Start Now, Thank Yourself Later
Some might be concerned about finding the perfect time to invest, but (like many other things in life) the perfect scenario doesn’t exist. Experts do advise that we pay off most of our debt before diving into the world of investing, but after you’ve taken care of your major debts, it’s time to start buying stocks.
“It’s now or never!” as they say. The stock market goes through frequent ebbs and flows, depending on economic and political happenings (and many other factors). This means that the millions of stocks on the market are constantly moving, allowing for opportunities for investors like us to buy them at good prices. After you buy your stock at a good price and sell it at a better one, you’ll start to realize that you can truly build wealth from investing on the stock market. So, if you want to set yourself up for future success, start investing now.
I know, I know. Picking a stock to invest in sounds like a huge decision! Well, it is and it isn’t. There are two keys to success that every new investor should know before buying their first stock.
Do Your Research
First of all, do your research. Before buying a house, we walk through the home, research its history, and scrutinize its price. The same should be true for stocks. We need to vet them, research their company history, and check out their historical prices before pulling the trigger and buying them. This step can be as simple as a Google search on company news, checking out the historical stock prices, and even watching some trustworthy YouTube videos on predicted success for the stock.
Buy Low, Sell High
There’s one simple mantra that took my investing from 0-100 fast, and it's not a multi-level marketing scheme. The concept of “buy low, sell high” has helped me earn a pretty penny with my investments.
Essentially, this concept means that you buy stocks when they’re at a low price (as compared with their history of pricing), and you sell these same stocks when they reach a higher price. Think of it like thrifting a perfect pair of name-brand mom jeans at $4.99, only to turn around and sell them on Poshmark for $50. The trick here is knowing when to quit, and deciding how high the stock should rise before you sell it so you don’t miss your window of earnings.
If you remember these two simple concepts when buying stocks, you’ll be set up for success. The world of investing doesn’t have to be that complicated, after all!