So there are hundreds of apps you can use to invest. Some better than others, but in this article ill go over an app I like and why.
When it comes to stocks, I use Robinhood, M1 Finance, and Yahoo finance. Those are my main 3 apps. There are many more but for the sake of this article I want to talk about M1 Finance and why I like it.
With this app you can do some amazing things. When you buy crypto you buy into the coin. You don’t have to necessarily buy the whole coin. With this app it’s the same thing. You don’t have to buy the whole stock. So, what does that really mean. That means you can take $100 and buy a stock worth $1000 if you so please. You are buying into the stock.
The other thing I like about the stock is you can create a pie. Its kind of like a mutual fund or EFT. With mutual funds and eft’s they are already built. You don’t get to pick which stocks you throw into the portfolio. With this website you can pick and choose which stocks you want in your portfolio. Then you can pick what percentage of money you want to go to each stock.
That’s a quick overview of M1 finance and why I like it. Don’t let not have a huge amount of money stop you from getting started. No excuses when you are working on making a financial change.
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I know you heard me say it before but growing up where I’m from we only here about the stock market. We don’t ever get into the stock market. Knowing what I know now that’s pure ignorance. We lack knowledge on the subject. So, I want to make it as simple as possible for you. Let’s get into how to buy your first stock.
In previous blogs I broke down some apps you can use in (How to Get Started in Stocks). Then we broke down how to find what to invest in (Easy Way to Find Out What to Invest In). Finally coming up with a strategy (What’s Your Investment Strategy). So now let’s put everything together and buy a stock.
First you need to find a brokerage. I prefer online brokerage because they are easy. I can make purchases anywhere at any time with the push of a few buttons. This will give you a lot of flexibility. Make sure you research the company and their fees. All brokerages are not created equal. Once you have found one that you like sign up.
The next step is going to be to fund your account. You will need a bank account that you can link to your brokerage account. Some accounts require you to do a monthly amount some don’t. Some require a minimum down payment some don’t. Some you can setup automatic funding some you can’t. So, find the one that fits you. I prefer to add my own money and invest myself. This may change later.
After you have everything setup then you type in the ticker symbol and look at the stock. By now you should already have a few stocks in mind. You have already gone to Yahoo Finance or MSN finance and checked out their financials. Most brokerage companies have a research section that can give you more information. Some are free some are paid. I love to look at the quote unquote experts fair market value. Each company will have a different market value because they use different metrics.
Once you buy the stock, it’s yours. You can either hold onto it or you can sell it later. But it’s yours. Buying stocks is easy. Watching the market and not making mistakes is hard. I am 100% self-taught so I made a lot of mistakes I know a lot of you will make. I’ll go through those in another blog. But in this one I just want you to know how to buy a stock.
So, everyone wants to get in the game. But like everything there is a learning curve. The first time I heard about stocks I thought oh that’s for white people. Nobody I grew up with knew anything about stocks. My examples came from T.V. Then you have the News, which scares you from even wanting to learn. So, it was a bit scary for me. In this blog we are going to break down some things I learned so you don’t make the same mistakes I made.
Like I talked about on the podcast there are 3 apps that I used to get started. The one I like the most is Robinhood, because I feel like I have more control over what’s in my portfolio. What I didn’t know was how to look up a company and make an educated decision. What I was doing was more for day traders, but I didn’t have day trader money. I would buy the stock why’ll it was climbing and sell it right before it went down. If this is your strategy from the beginning, then fine. Here are a few tips.
To be a day trader, at the time of writing this you need to have $25K in a brokerage account. There are ways around this though. So, each brokerage allows you to do so many day trades in a 7-day period. So, what you would have to do is have multiple brokerages. Don’t exceed the allowed limits or they will flag your account as a habitual day trader. LOL
Something else you can do is setup a stop loss in your account. So pretty much you’re telling the computer that if it hits a certain number sell it for you. You can do that with buying and trading. I didn’t know that in the beginning, so I was sitting there watch stocks all day.
This blog was about to super long. But I’ll stop right there and continue on the next one. Those two tips will save you money, time, and a headache. Give them a try.
Investing is one of the best ways to set yourself up for financial freedom and retirement. Every and anyone should be investing in something. Depending on your upbringing many of you don’t know where to start. Well I want to help you get started. But get started the right way. There are only 2 Rules to investing. Rule 1 Don’t lose money. Rule 2 Look back at Rule 1. So, we are going to talk about what do you invest in.
How do you know what to invest in? Don’t make the same mistake I made when I started. Don’t start investing randomly. That’s called speculative investing. Have a formula. Find what you like to do. Then find what you are talented in. Then find where you are spending your money. That’s the start to it all. You need to invest in something you know about. You don’t need to know everything about it but you need to have an idea of what’s going on.
Once you get your list together then you need to see what keeps repeating. What goes hand and hand with each other. Take that information and start figuring what company’s meet those characteristics. I would say write down as many businesses as possible. Once you get into the numbers a lot of them will not meet the criteria you need to make a smart investment.
Hopefully this gave you a good idea of what you should be investing in. It doesn’t have to be super complicated like how people make it seem. Keep it simple and invest in what you know. You may be surprised at how much you know about a business or industry. Take your time and do it right.
We all hear about stocks. For most of us we focus on the stock market crashes that happen every so often. What we don’t pay attention to is all the years that the stock market hasn’t crashed. So I say that to say don’t let fear stop you. I always wanted to get into stocks, but I was scared. I didn’t know much about it and I would look the other way. However, one day I logged on to Facebook and Dr. Boyce Watkins was doing a live. I didn’t catch everything just the tail end of it and he was saying if you want to learn about stocks download these 3 apps.
Acorns: I like Acorns because you don’t have to do anything. You link it to your debit card and as you make purchases it rounds up. Meaning if you spent $4.92 it will add $0.08 to your Acorns account. They don’t withdraw the money until they rounded up $5. So, they will withdraw in $5 increments. They will invest the money for you.
Stash: With stash you are buying into EFTs. The best way I can explain it is they are kind of like mutual funds. Where you buy a group of stocks at a time and you profit off the collective group. The main difference is that you can trade an EFT like a common stock. Mutual Funds you tend to have to hold on to them a little longer. So, you can find an EFT with some high-end stocks and sit back.
Robinhood: With this app it’s a little more complex. You are buying individual stocks. The risk is higher but so is the reward. You can lose it all or you can win. If you like to control exactly what stocks are in your portfolio and have time to really pay attention to them then this is for you. Me personally I like this app the most because I can find specific companies and invest.
At the time of me writing this it doesn’t cost anything to sign up for any of these apps. So really you don’t have an excuse. Lets get to it.
During the first period of a man's life the greatest danger is not to take the risk.