The biggest question many people have is, “How Do I Invest in Stocks for Beginners?” It’s as simple as opening a brokerage account. If you have a basic understanding of investing, you can open an online brokerage account and buy stocks.
You don’t need to be a millionaire to invest in stocks. In fact, you can get started with as little as $500. But, if you want to make the most of your money, you should have at least $1,000 to invest.
When you’re ready to start investing in stocks, there are a few things you’ll need to do:
Pick a broker. Open an account with a discount broker or a full-service broker.
Select your investments. Decide what stocks or mutual funds you want to buy.
Submit your orders. Place your buy or sell orders through your broker’s online trading platform or by phone.
Monitor your investments. Check your account frequently to see how your stocks and funds are performing.
Re-balance your portfolio. Make sure your investments are still aligned with your financial goals.
How to Invest in Stocks for Beginners
If you’re new to investing, the best way to get started is by buying mutual funds or trickle investing using an app like Robinhood.
A mutual fund is a group of stocks and you buy a certain amount, say $200. With that $200, you earn the rewards of owning a group, or fund of stocks. There are tech funds, manufacturing funds, government funds, small business funds, and thousands more to choose from. The biggest benefit is that the majority of businesses in the fund grow, and so does your money. However, if one or two stocks drop drastically, you don’t lose your money.
An app like Robinhood is a way to trickle invest in individual stocks, funds, and other assets. It only takes $1 to begin investing, and there are no commissions (fees paid to buy stocks).