Hello! I am The Millennial Investor! I discuss any and every thing about finances. I save as much of my income as I possibly can. I manage to save a reasonable amount of my income even though I pay for my entire college on my own without student loans. I am a business major and I work part time at Olive Garden and post YouTube videos in my spare time. The stock market has always been a HUGE interest of mine. So much of my life revolves around investing in the stock market. Whatever money I save goes directly into buying stocks. I invest in stocks, exchange traded funds, exchange traded notes, commodities, and stock futures. So if the Dow Jones Industrial Average, the S&P 500 Index, and the NASDAQ are all up, then I'm one happy guy. My goal in life is to become financially independent independent. Thank you for watching! Any and all support is appreciated! Stock market investing for beginners! If you are new to the stock market and new to investing then you are probably filled with a lot of questions. Information about how to invest in the stock market or anything about finances are not taught in schools. So, unfortunately all your knowledge on investing will have to be done through your own research. So in this video I’m discuss the five steps to begin stock market investing.
The key to gaining wealth is investing. But the more powerful of the two is investing. Saving and investing your money is the best way to gain wealth. When I first started investing in the stock market there was a lot of unanswered questions. I thought I knew everything there was to know about stock market trading. But until you press the button yourself, it is a lot different. The key here is to get consistent gains regardless of your investing method.
The first step is to begin paper trading. Paper trading is something you can start right now. Literally, start this right now if you are new and considering stock market investing. Paper trading is a stock market simulation which you buy and sell stocks in real time but with fake money. The point of this is to become familiar with the stock market. You can practice this buy starting accounts for free and then buying stocks just as you normally would. The money is fake, but the point is to treat it like it is real money so you know how to spend it. Experience will beat any kind studies when it comes to stock market trading. I would recommend TD Ameritrade or MarketWatch to begin. They have highly advanced charts and information to analyze a stock.
The next step is to learn how to read annual reports. An annual report is a company’s yearly report to the shareholders, documenting its activities and finances in the previous financial year. Public companies are legally required to give quarterly and annual reports. They provide literally ANYTHING you could ever possibly imagine about a company. Assets, liabilities, cash flow reports, projections, shareholder information, growth, revenue, expenses, profits, locations, CEO information, and MANY more. But most importantly, look into seeing if a company is profitable. For example, let’s take the new public company Lyft. All the hype revolved around Lyft came crashing down in its IPO. Why? Because the company is not profitable. As you can see, Lyft is operating at a loss to gain market share. Now you have to ask the question, is this company worth investing in?
The third step is learning technical analysis. There is a difference between trading stocks and investing in stocks. Investing in stocks is buying in companies you believe in which have good balance sheets and good business models. Trading stocks is buying mostly off of trends. This is where technical analysis comes into play. There a ton of information about learning what is technical analysis. But, some of the most important one to learn about is simple moving average, exponential moving average, volume, parabolic SAR, and momentum. While reading a basic line is easier, I recommend reading these using candlestick charts.
The fourth step is downloading the Robinhood app. Robinhood is a commission free trading app which is perfect for the newbie investor. Use my download link below in which we will both get a free stock. I got a share of Microsoft for $120 for a referral. If you have a very large amount of money or plan on holding the same stock for years, then there are better options. TD Ameritrade is the one I recommend which is a bit more professional.
The fifth and final step is to go fund your account and buy your first stock. If you want, if you did not practice paper trading, or if you still aren’t 100% confident, I would recommend buying and selling just one stock at a time. You now know how to begin trading and investing in the stock market! So go out and buy your first share of stock!
If you would like to financially support my college career, click here.
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