Want To Invest In Stocks: Step-By-Step Guide

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It Might surprise you to learn that a $10000 investment in the S&P 500 index 50 Years ago would be worth nearly $1.2 million today. Stock investing, when done well, is among the most effective ways to build long term wealth. We are here to teach you how.

How To Start Investing on Your Own

It’s tempting to put off investing. You can think of plenty of excuses: I haven’t saved enough money yet, It’s time consuming or I don’t know where to start. but the truth is, you can start investing with just a few hundred dollars by following these steps.

Ask Yourself What You Want To Achieve

Is Your goal a down payment on a car? are you saving for your kids education? Or do you just want to get started and learn how to invest in the stock market?

Divide Your goals into short-term, medium-term, long-term (more than 6 years). Then, decide how much money you’d like to save for each goal. You can use calculators available online.

Why you should start investing early

  • More Recovery Time: If You start investing early and incur a loss, you have more time to make up for the loss on investment. Whereas, an investor who starts investing at a later stage in life, will get less time to recover his losses. Thus with early investment get more time to grow in value.
  • Save More: With early stage investments, you develop a habit of saving more. The more you invest, the more you get in future. To follow that thought process, you tend to save more by cutting on unnecessary expenses and divert such saved money towards investment.
  • Improve Risk Taking Ability: Studies prove that young investors have more risk-taking ability than older ones. Adult investors are generally conservative and prefer stability, in turn avoiding high-risk investment avenues. There is an old saying, “more the risk, more is the reward”.

What to consider before making your investment move

1. Draw a personal financial roadmap

Before you make any investing decision, sit down and take an honest look at your entire financial situation — especially if you’ve never made a financial plan before.

The First step to be successful investing is figuring out your goals and risk tolerance.

2. Know Your Risk Taking Appetite

All investments involve some kind of risks. If you want to purchase securities – such as stocks, bonds, or mutual funds – it’s important that you understand before you invest that you could lose some or all of your money.

The reward for taking on risk is the potential for a greater investment return. If you have a financial goal with long term vision.

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