Want to grow your wealth? Investing in stocks is an excellent way! You may be confused with how do you actually start investing. Follow the steps to learn and start investing in the stock market.
The First Step
Decide if you want to handle it all or let someone else manage it
There are two ways one can start investing in the stocks:
The Do-it-yourself: In this, you manage all your stocks and you choose your own stocks and stock funds.
Letting someone else manage it: Everyone known stocks can be a great investment but some are not confident enough to manage it themselves hence they hire a broker.
Choose the option which you feel the most confident in. If you think you know your way around the stocks then managing and DIY is for you, or I would suggest hiring a broker that can help in managing and investing in the stocks.
The Second Step
The Investing Account
To invest in stocks, you need an investment account which is also known as a brokerage account.
If you are looking for the least expensive and quickest ways to buy stocks then an online brokerage account is likely to be best for you. There are many brokerage accounts online that you can find some of which have high credibility and are our strongest options like; DiversyFund, Zacks Trade, and Personal Capital.
The options of letting someone else manage it:
A Robo advisor that provides online financial advice and investment management help does not require you to do any legal work required to buy any individual investment.
The service of the Robo-advisor asks for your complete investment management goals during the process of onboarding and will then create a portfolio designed to achieve your goals.
This seems expensive but all the management fees are a fraction of what a real human manager will charge. Many Robo advisors only charge 0.25% to 0.50% of the total assets. That’s all you need to do for a Robo advisor account. The strongest from our list with a low management fee of only 0.25% and a $0 account minimum is Betterment.
The Third Step
Have a budget for your stock investment
I have seen many questions on many forums of beginners. They all are confused between how much money do they need to start investing and how much money should they really invest. The money that you need to start investment depends on the amount of the share. Share prices range from dollars to a few thousand dollars.
Whereas, if you are confused with how much money should you really invest in stocks then it is all up to you! You can start with a small amount of $500 or even invest a fairly large proportion of your total portfolio in stocks.
The Final Step
These were just the basics. Stocks investments are all filled with strategies and approaches then one understands and makes through the years of experience.
Yet some of the most successful investments have only stuck to the basics and they managed to be successful. Just use funds for the bulk of your portfolio and go for the individual stocks only if you think the company has the potential for long-term growth.
If you think individual stocks are for you, learn to research the stocks and plan your strategies. Build a simple portfolio of low-cost, broad-based options that you can use to achieve your goals of capital and financial gains.
Read also Acorn Spare Change Review and The Best Strategy for Investing in 2020.
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