As I unwrapped my sandwich during my lunch break last week, I had a conversation with a security guard regarding stocks. To my shock, this 22 year old guy had extensive knowledge about stocks. My astonishment came not because he was so young but because I didn’t think that people were investing anymore. In fact, I had established that the regular people in the world didn’t invest in stocks; it seemed almost antiquated. Throughout our discussion, I realized that not only is the stock market still a reigning champ for economic growth but it’s pretty entertaining to have as a hobby.
You have seen so many films and television episodes that have dedicated itself to dramatizing the effects of investing but there happens to be a very strategic method to “winning” so to speak. You cannot just simply go on Google and purchase thousands of shares and become a millionaire in one week; but there is an exciting aspect of investing that makes you hope it happens. There are certain tips to keep in mind when trying your hand at the stock market but mostly, you have to understand the process.
Do your research
As I explained above, you can’t just Google something like this. Do your research on the stock market as it is. Look at what people are interested in and start to analyze its potential in the future. Allow yourself to embrace the inner “Wolf of Wall Street” that lives within you.
These damn stocks don’t buy themselves. Decide what kind of money you want to invest and begin to save your money for it. It’ll be hard and you’ll want to spend the money on things that are more instantly gratifying, but you can’t! Take the money you want to put toward your stock and put it in an account that cannot be touched.
Determine your investor type
Decide if you want to be the sole person that is doing all the dirty work when it comes to the stock market. If you prefer to keep this a solo project, you can go this route but some may prefer to get some help from the more experienced. In this case, you would want to get an advisor that can better step you through the process.
Choose the right stock
Obviously you can’t just close your eyes and pick a stock and throw all your money at it. Again, this is money you are putting towards something in the hopes to make a profit. Don’t just choose a stock because it seems like its doing well at the time. This is your money and your future we’re talking about, be smart.
Open an account
For us newbies, getting a broker can help a lot with this part of investing. If you already have a 401(k) plan, you can kind of ignore this tip because you may have already invested in stocks but if you don’t have this, you should look into IRA accounts. This will allow you to invest in the right choices like your retirement.
Keep up to date
It can be consuming but you have to look at the market every day even if its just for a moment. Just like with anything in life, you should always be informed about what’s going on around you. Take some time to check the market daily.
If the stocks are down, don’t panic and want to sell it immediately. Part of the enticing part of the stock market is the way it goes up and down. Obviously you don’t want to lose money but it’s exhilarating when it seems like its going nowhere and all the sudden it skyrockets up.
Just do it
Don’t be a bitch, just do it.