Investing in stocks is a great way to build wealth, although getting started can feel daunting for many beginners looking to get into the market. But with this quick-start guide, you can begin buying stock in minutes, even with just a little bit of money to invest.
Investing in stocks: 4 quick steps to get started
So you’re ready to begin investing in stocks? Here’s a basic four-step guide to get you going:
1. Choose how you want to invest
You have several options when it comes to investing, so you can really match your investing style to your knowledge and how much time and energy you want to spend investing.
- A human investment professional: An investment manager is a great “do-it-for-me” option for those who want to spend just a few minutes a year worrying about investing.
- A robo-advisor: A robo-advisor is another solid “do-it-for-me” solution that has an automated program to manage your money using the same decision process a human advisor might – but at a much lower cost.
- Self-managed: This “do-it-yourself” option is a great choice for those with greater knowledge or those who can devote time to making investing decisions.
2. Open an investment account
- A human financial advisor can design a stock portfolio and help with other wealth-planning moves such as saving for college.
- A robo-advisor can design a stock portfolio that matches your time horizon and risk tolerance. They’re typically cheaper than a human advisor, often a quarter of the price or less.
3. Decide what to invest in
The next major step is figuring out what you want to invest in. This step can be daunting for many beginners, but if you’ve opted for a robo-advisor or human advisor, it’s going to be easy.
- Using an advisor
- Using a brokerage
4. Determine how much you can invest in stocks and then start buying
The key to building wealth is to add money to your account over time and let the power of compounding work its magic.
Highlights For Investing In Stocks
- Investing in stocks and letting your money work for you is one way to grow your wealth.
- Investing involves a chance of losses. However, there are ways to lower your risk, though you can’t eliminate it.
- New investors have never had so many resources for expert advice.
- Following these seven essential steps, you’ll learn how to set clear investment goals, choose the right stocks, and understand the basics of stock investing.