Have you been struggling financially during this season of COVID-19 and racial injustice? If so, you are not alone. I have had those same struggles, and this was years BEFORE this pandemic. As a wisdom wealth encourager, those who know me know that I encourage good health and wealth in all areas of your life. This includes healthy eating, healthy money management (aka good stewardship) and as a believer in Jesus Christ, praying with strong faith and sharing with others of a healthy spirituality. The reason I can share my expertise in these areas, is because I have lived in these areas and have experienced the downfalls. On the positive side, I didn’t stay there. I received the help I needed in some areas, became self-taught in other areas and took advantage of opportunities via social media. Stock investing has shown me there there is more than one avenue to go.
Although I am no financial expert and do not give financial advice, I can direct you to resources that can. I may not tell you what stocks to invest in and when, but I can tell you what has worked for me. So, here are a few ways to learn how to invest in the stock market:
Research, Research Research.
Do your due diligence, if it means getting referrals and checking customer reviews. I personally listened to stories and testimonials of others along with pros and cons of the stock market. This also means checking out good books such as The Intelligent Investor by Benjamin Graham which you can get as an e-book or paperback. Billionaire investor, Warren Buffet contributed to the preface of the book. Buffet has read The Intelligent Investor early in his career and credits some of his knowledge to avid reading and applying what he learned.
While reading, watch the market and observe what is g
oing on around you. When you watch the market, you can know when to buy low and sell high, the difference between a bullish and a bear market, etc. Or you have the option to buy low and hold the stock if you are a long term investor.
Speaking of options, there are also resources that teach you about options trading. That area is a little more complicated for my blood, so I would rather stick to long term investing until I am comfortable enough to take those risks. I don’t like risking hard earned money or even passive income on trading when there are so many other ways to obtain wealth. With trading, it may seem faster to reach your goal, but it is also an easy way to lose your money if you are not careful.
Hire a trusted mentor. To learn how to invest in the stock market, it is important to take your time to research good mentors online by watching what they teach and learn how to do better than or just as good as they can. Once you find someone reputable with true reviews from students, you can enroll in their online classes or even buy their course that specifically caters to those who are interested in investing in the stock market. Prior to the pandemic, some mentors also host phone consultations, fee-based live conferences in person and over-the-shoulder training. During this season, of course, many are opting for online training, Google Hangouts, Zoom, etc
When searching, decide whether you would like to become a long-term investor or a trader. There are specific niches and training for either niche.
Invest in businesses instead of the stock market.
This also goes back to research. Study companies that you buy from often. For example, if you only buy Apple products such as I-phones, I-pads, etc., study the financial history of the business. Many businesses have financial reports that although seemingly boring to read, it may help spare your financial life. Long-standing businesses, tech industries, companies that pay dividends and have a good price to earnings ratio are all areas to consider during your s
For beginner investors, TD Ameritrade, the Robinhood app. and Vanguard are just a few brokers you can use. Most brokers charge trading fees of around $5 to $8, but Robinhood is free to trade if you don’t have any extra funds to spare. You can with shares of one stock and eventually add more businesses and continue to build and diversify your portfolio. You know the saying, “Don’t put all your eggs in one basket”.
Whichever route you choose to learn how to invest in the stock market, whether they are books like The Intelligent Investor , course enrollment or hands-on learning, just starting is the key to opening the door. Staying the course is the key to keeping it open.
Have you started investing in a stock? If so, what businesses and sectors are you interested in? If not, what are you waiting for? Check out the market for yourself and let me know your thoughts about it.