Investing in stock is one sure way of bidding a perfect farewell to poverty. There are millions of people all over the globe who are into the business. Whether you are still actively in service or you are retired, investing in stock is a perfect way of increasing wealth.
However, before you think you have found a treasure chest. It is important that you know the technical and psychology know-how of investing in a stock.
In our bid to always satisfy the curiosity of our readers, we have strategically compiled the best ways to start investing in a stock.
1) Know how you want to invest in the stock
First things first, you must decide the type of approach you would like to use. For the records, if you are the type that has the luxury of time to make in-depth research on stocks, you can decide to do the individual stock. The individual stock permits you to critically follow the activities of the company that you invested in yourself. This means that you must be good with statistics and must surely have headed for numbers.
However, if you do not have the luxury of time to monitor things on your own. You can decide to employ the service of a Robo-advisor. This service is offered by most brokerage companies. They will help you monitor the ongoing activities of the stock on a daily basis.
Meanwhile, this service attracts a charge that is relatively low.
2) SET ASIDE THE MONEY FOR INVESTMENT
You might be wondering why this is really necessary. It is worthy of note that the stock brokerage is not a treasure chest. Hence, there is a need to expect the unexpected by doing proper risk management.
There is money that should not be invested. The stock market is not an immediate money doubler. Reasonably, an investor has to exercise a whole lot of patience before the market starts yielding fruits. Having this in mind, any more than would be needed in no time, e.g tuition fee, rent fee, health insurance fee and many more should not be invested into stock.
3) OPEN AN INVESTMENT ACCOUNT
Before you can start investing in stock, you will need a specialized account. Whether or not you are the one handling your investment yourself, you would still need an account.
For individual investors, such accounts are known as the brokerage account. However, for those that would need the services of Robo-advisor. It is easier for them to get an account because the stress will be on the Robo-advisor.
4) CHOOSE YOUR STOCK
For a starter, there are top stocks that you can choose from. They include:
« Amazon.com (NASDAQ:AMZN)
« Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL
« Intuitive Surgical (NASDAQ:ISRG)
« Facebook (NASDAQ:FB)
« Axon Enterprises (NASDAQ:AAXN)
Stated above are the top five stocks for starters. We would not be able to give an in-depth analysis of the criteria for selecting the most suitable stock.
However, below are some ideas to have in mind while selecting
« Invest only on stocks you are familiar with
« Learn the basic metrics and concepts used to evaluate stocks
5) DON'T STOP INVESTING
Have you heard the saying that quitters don't win and winners don't quit?
The future is definitely bright for those who patiently prepare for it. Warren Buffet is a living example.