Becoming an Investor isn't difficult. Here I'll layout 3 steps to get you closer to Financial Freedom.
1) Start a Brokerage Account
The very first step to becoming an Investor is actually starting an account that you can trade securities on. There are plenty of great options for first timers like Public, WeBull, and Robinhood. Take a look at this video explaining the differences in the most popular brokerages out there today. It's alright to start with one account, but it's not uncommon for investors to have multiple accounts with different brokerages. I myself have 6 accounts where I run different investing strategies.
2) Fund Your Account
Adding funds to your account is how to get the new member rewards or referral gift (if you used another users referral code). These gifts or rewards, and pre-requisites vary depending on the brokerage you chose.
I recommend $100 for your first deposit on your new account. This amount covers the pre-requisites for most of the top brokerages out there. I also recommend setting up weekly deposits. DCA or Dollar Cost Averaging is the best way to combat market downturns. Simply put: the more you make regular contributions, the less volatility you'll see in your portfolio over time.
3) Purchase Your First Stock!
Now that you have a brokerage account and you've funded it, you're all set to make your first trade! Instead of going out to do a ton of research, just take your $100 and purchase several companies that You actually use.
Don't worry if the share price is more than you actually have, as all modern brokerage accounts allow fractional share trading. That means you can buy a fraction of a share instead of the whole thing. Neat, right?
Good Luck!
If you've followed these steps, congratulations!!! You are now a bonafide investor in the stock market. Keep up to date on everything investing by subscribing to Invest Now.
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