Investing in stock can be a great way to grow your wealth and learn more about the industries that matter most to you. However, choosing which stock to invest in and when to sell can prove challenging if you’re new to the field.
To help you turn dimes into dollars, we’ve compiled a list of tips for new investors. So keep reading to find out everything you need to know to start investing!
Find Trusted Sources
The good news is that you’re already following one of the most important tips for new investors: maintaining financial literacy!
Learning how to navigate investments can be downright intimidating. Thankfully, there are quite a few experts out there willing to share their knowledge for free.
Here are a few of the best stock advice resources to pay close attention to:
- Dave Ramsey
- Investopedia
- Clark Howard
- CNBC
- The Motley Fool
All of the above have strong digital presences. Add them to your list of social follows so you can get the latest news delivered to your feed.
You can also check out the list of books recommended to billionaire investor Warren Buffett.
Start Small
You might have dreams of hitting it rich, but new investors would do well to keep their heads out of the clouds. At least, at first.
Though it’s possible to borrow a loan with the explicit intent to invest, we don’t suggest this route. While loans are great for your finances in some situations, even if you have bad credit, remember that investments are a gamble. If you lose the money you’re investing, you’ll still have to pay it back — plus interest!
If you’re looking to get comfortable with the market and gain some experience buying and selling, start with something simple like penny stocks.
You may also want to look into using an app such as Acorns, which links to your debit card and rounds up to the nearest dollar following every purchase. Once you hit a certain threshold, Acorns invests that money in a stock of your choosing. It’s a perfect, low-risk experimentation tool for new investors.
No matter which option you choose, it’s wise to start by only investing a small amount. Then, once you feel more comfortable with the market, you can start getting froggier with your investments.
Check the Markets Each Day
Make a habit out of checking in with the market each day so you can gain a better understanding of daily operations and see how your stock is performing.
As Investopedia points out, the market tends to fluctuate the most during the first and last hours of the day. Your best bet is to check-in during the middle of your day when things are a bit calmer so you can get a stronger sense of your stock’s performance.
This is yet another reason why it’s important to find reliable news sites or forums. These sources often provide valuable feedback on the up and coming stocks, as well as which stock you’ll want to get rid of at your earliest convenience.
In essence, it’s all about giving yourself a wide array of information. The more info you have, the easier it is to make a smart stock decision.
Follow These Tips for New Investors
To summarize, the key to managing your new investments is to stay informed. Whether you’re reading books from the experts, checking Twitter for NASDAQ news, or looking at the markets for yourself, knowledge is power. Or, in this case, money.
We hope you’ve found these tips for new investors helpful! For more financial tips, make sure to check out the rest of our blog!
