How to Start Investing in Stocks
Hey guys, do you have some extra money on the side and wondering how you can use this to make more money? Have you thought of investing your money in the stock market? If you have, maybe I can help you guys. Here's how you can start investing:
The first thing you do is open an account. There are many apps or brokerage accounts you can use. Examples are Robinhood, Fidelity, Webull, Acorns, Stash and TD Ameritrade Mobile. I would recommend starting with these apps because they are easier to use, especially if you are a beginner. I would start trying to get used to these apps first. Before you start investing in a company, first set aside a budget, so you don't get carried away and make sure you do your research first. That means studying that company before you invest. There are ways you can determine if a stock is worth investing in, but here are examples, fundamental and technical analysis. Fundamental analysis uses revenues, earnings, future growth, return on equity, profit margins, and other data to determine a company's value and potential for future growth. In comparison, technical analysis uses statistical trends gathered from trading activity, such as price movement and volume, to decide. You can pick one or use both to determine a stock you want to invest in.
After you invest in a stock, you have to decide how long you want to hold that stock.
Do you want to hold that stock for the short term or long term? Short-term investing is holding a stock for less than a year. Long-term investing is holding a stock for more than one year. It is totally up to you how long you want to hold on to your stocks before selling. Just be aware that any profit you make on the sale of a stock is taxable at either 0%, 15% or 20%, depending on how long you held a stock. There is no best way to make money from the stock market. You have to dive in and come up with your strategy. Still, It won't hurt to check out a couple of successful stock investors and get some tips. One example is Warren Buffet, the CEO of Berkshire Hathaway; he is considered one of the world's most successful investors and has a net worth of over US $85.6 billion.
Now you know how to start investing, be patient and make sure to check the news for the companies that you invest in every day because news makes a significant impact on how a stock value increases or decreases.