How To Buy Stocks

Buying stocks involves a series of steps. Here’s a general guide on how to buy stocks:

Mindset:

It is common thinking that the stock market is like automatic money without risk but it is not. Most new investors lose 90% of their money that they invested within 90 days because investing in the stock market is very challenging. The mindset is that you will lose money because YOU are still learning. I find it funny that people has no problem spending $250,000 and spend 4 years to get a degree without earning any money. The same people have a problem losing money the first year investing.

Educate Yourself:

Before diving into the stock market, it’s important to educate yourself. Understand basic financial terms, how the stock market works, and the factors that influence stock prices. There are many online resources, books, and courses available to help you learn. I have many resources from my podcast and many blog articles on investing tips. Stock market for beginners http://dorianfinance.com/stock-market-for-beginners

Set Financial Goals:

Determine your investment goals. Are you looking for long-term growth, income through dividends, or short-term gains? Your goals will influence your investment strategy. 

Create a Budget:

Assess your financial situation and determine how much money you can afford to invest. It’s crucial not to invest money you can’t afford to lose. My blog article on how to make a budget with VIDEOS

Risk

The stock market runs very fast and stocks go up and down. Before investing in any stocks ask yourself “why am I investing in it?” than ask yourself “if the stock goes down by 30% would I still buy it?” Know yourself and what you can handle. I made investments thinking it might go up and Later learned that I was mistaken to make this investment and I had to sell it at a loss. 

Choose a Brokerage Account:

To buy stocks, you’ll need a brokerage account. Research and select a reputable brokerage that suits your needs. Consider factors such as fees, available investment options, user interface, and customer support. The two brokerage accounts that I use the mosts are WeBull and RobinHood Start investing using one of the leaders in the stock market We Bull Start investing using stock market app RobinHood

Complete the Account Setup:

Once you’ve chosen a brokerage, you’ll need to complete the account setup process. This usually involves providing personal information, financial details, and sometimes submitting identification documents. This can take up to two weeks to be done but in most cases it is done within the same week.

Deposit Funds:

Transfer funds into your brokerage account. This is the money you’ll use to buy stocks. You have to connect your bank account to your brokerage account.

Research Stocks:

Conduct thorough research on the stocks you’re interested in. Consider the company’s financial health, performance, management, and industry trends. You can use financial news, company reports, and analysis tools for this purpose.

Place an Order:

Once you’ve decided which stocks to buy, place an order through your brokerage platform. There are different types of orders, including market orders (buy or sell at the current market price) and limit orders (set a specific price at which you want to buy). For me, I always use Limit orders because market orders, you can be paying up to 5% more for the stock.

https://www.youtube.com/watch?v=9JjI_R2869Y

Monitor Your Investments:

Keep an eye on your investments regularly. The stock market can be volatile, and conditions may change. You may need to adjust your portfolio based on your goals and market conditions. Check up on your stocks reports and see if they are doing what you thought they would do. 

Diversify Your Portfolio:

Consider diversifying your investments by spreading your money across different stocks and industries. This can help manage risk. The thought behind the strategy is that not every single sector is down at the same time and when some sectors are down others will be up.

Stay Informed:

Stay informed about market trends, economic news, and any developments related to the companies in which you’ve invested. This is a big point to stay informed because I sold all my stocks weeks before the Covid-19 shut down hit. I just rebought my stocks when they all went 30% down or more, which all went back up very quickly. I did that because I was staying informed in the world around myself.

Remember that investing in stocks involves risks, and there are no guarantees of profits. If you’re unsure about making investment decisions, consider consulting with a financial advisor.