How to Invest in Stocks for Beginners? (5 Steps)

By Grace

Want to know how to invest in stocks for beginners? If you are a beginner, you should know the proper ways on how to easily start investing in stocks. Investing in the stock market is very exciting. Of course, even more exciting for a beginner. When I was a newbie to investing (2013), I didn’t prefer to invest in stocks because I have the feeling that investing in this vehicle is not for me. I was afraid that time. But, now of course I am more confident because I learned so much things.

Today I will give you some investment tips. You can follow these tips or not. It’s up to you. Before we proceed to the topic, I want to inform you that invest in the stock market is risky. Don’t be afraid to the word “risks”. Stocks belongs to high risks types of investments. I believe you are still young, therefore, stock investing is fit for you.

See Also: Compound Interest Formula Investment

A reader of InvestmentTotal.com asked, “how to invest in stocks for beginners with little money? I want to know If I can start investing in stocks by only putting some amount. I am willing to invest $75 per month, is that okay?”

That question is from Wendell from Boston, MA, USA. I received his email last night. Maybe Wendell is a loyal reader of this blog. There are many interesting topics on this blog related to “wealth accumulation”. And one of my suggestions is to start investing in stocks.

How do you make money out of investing in the stock market? There are two ways to make money in investing in stocks. The first one is through capital gains. Please read capital gains here for more information. The second one is through “dividend”.

How to Invest in Stocks for Beginners?

Before you invest money in stocks, make sure you already have emergency funds, you bough health insurance, life insurance and you already know your investment plan and goal. Assuming you have these stuffs.

Here is the simple step by step on how to invest in stocks for beginners. This is not complicated. Anyone can do it as long as he is willing to start investing;

  1. Choose one of the best stock brokerage companies in your country.
  2. Create an account to your chosen stock brokerage. When creating an account, you need to submit necessary requirements and important documents.
  3. Fund your stock brokerage account. Once your application is approved, fund your account. You can fund your stock brokerage account through remittances banks or in the office of your stock broker.
  4. Start buying stock shares using your funds.
  5. Decide when to sell your stocks.
how to invest in stocks for beginners

Image Credit: Travel Aficionado on Creative Commons 2.0 via Flickr — Stock Exchange

How to Invest in Stocks for Beginners?

  • Do not get excited. You need to learn a lot of things.
  • It is important to open a stock brokerage account.
  • Don’t be afraid of graphs and numbers as if the stock market looks like a monster.

As simple as that. It only takes 5 steps to invest in stocks. This tips is for beginners only. And I think this guide is complete as if you just want to know how to really start investing in stocks. Now you know how to invest in stocks for beginners, let me guess, for you it’s easy, right? It’s really easy to invest in stocks. However, you need to know and learn more things such as the best stocks to buy or when is the best time to buy company stocks. You should also analyze when should you sell your stocks. Don’t just invest, invest wisely!

See Also: Australian Stock Exchange Company Information
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