{"id":39,"date":"2022-11-25T21:52:59","date_gmt":"2022-11-25T21:52:59","guid":{"rendered":"http:\/\/localhost\/etf\/?p=39"},"modified":"2022-12-03T15:49:17","modified_gmt":"2022-12-03T15:49:17","slug":"how-to-invest-in-stocks-as-a-beginner","status":"publish","type":"post","link":"http:\/\/localhost\/etf\/investment-ideas\/how-to-invest-in-stocks-as-a-beginner\/","title":{"rendered":"How to Invest in Stocks as a Beginner"},"content":{"rendered":"

For over four decades now, people have banked on stock investments for wealth building, representing smart work options. In investment, your money works for you. If done right, stocks are great options for high profit.<\/span><\/p>\n

However, there’s always a challenge when it comes to first-time investing. Beginners are always concerned about how to start investing in stocks. In this article, you’ll learn what stock investing is and how to start investing.<\/span><\/p>\n

What is Stock Investing?<\/span><\/h2>\n

Stock investing or investing in stocks simply means gaining ownership rights in a company by buying its shares. Basically, when companies need to raise money to expand their activities, they sell their stock to the public.\u00a0<\/span><\/p>\n

The company compensates the individuals who bought the stocks (referred to as investors or shareholders) with a good sum of money. So, put in another way, stock investing is investing in a company with the hopes of gaining profit through the stock’s value appreciation.\u00a0<\/span><\/p>\n

If<\/span> you’re getting a little confused about stocks and shares, let’s break it down. When you buy a company’s stock, you purchase a portion of that company, called a share.\u00a0<\/span><\/p>\n

It’s exactly like getting one or more of ten slices of a family-sized pepperoni pizza.<\/span> Stocks are<\/span> divided into shares so that you can buy as much as you can afford.\u00a0<\/span><\/p>\n

To throw light on the ownership rights earlier mentioned, this is the right to participate (by voting) in the company\u2019s decision-making in selected cases.<\/span><\/p>\n

The Best Way to Invest in Stocks as a Beginner<\/span><\/h2>\n

One of the most common mistakes new investors make is trying to buy stocks directly. While this isn’t a wrong approach to investing, <\/span>you may need to be a stock guru to get it right with individual stocks investing.\u00a0<\/span><\/p>\n

The drawback is that you can’t be sure that the company you’re investing in will gain power in the next 5 – 10 years. And so, if the investment fails, you stand a chance of losing all your money.\u00a0\u00a0<\/span><\/p>\n

These days, stock investing has been made easy with lots of alternative investment vehicles. Examples include mutual funds, index funds, and exchange-traded funds (ETFs).\u00a0<\/span><\/p>\n

All of these stock investment options have one thing in common. They allow investors to buy different types of assets at once. Typically, investing in any of them means you aren’t buying one type of asset, stocks for example, rather you also buy bonds and commodities at the same time.<\/span><\/p>\n

However, Exchange Traded Funds (ETFs) are usually the best bet for beginner investors. ETFs pool investors’ resources and invest them in different types of financial assets such as a variety of stocks, bonds, commodities (gold, oil, etc) and currencies, offering diversification and lower investment risk. Returns from other assets can cushion the effects of failed investments in the basket so that you don’t lose all your money<\/span>.\u00a0<\/span><\/p>\n

Not to be mistaken, being a bundle of financial assets doesn’t mean ETFs are more expensive investment vehicles. In fact, one of the greatest benefits of investing through an ETF is that you get to diversify your investment portfolio cost-effectively.<\/span><\/p>\n

There is a myriad of options with some letting you invest with as little as $1. In addition, ETFs typically carry lower fees than equivalent investment funds. ETFs also enjoy tax advantages and are also very liquid.\u00a0 Liquidity means that you can easily sell off your investments.<\/span><\/p>\n

Conclusion\u00a0<\/span><\/h2>\n

Investing in stock is an age-old approach to building a sustainable income stream, especially when you have solid assets in your portfolio. But to keep risk low, experts would advise that beginners start their investment journey with a diversified investment portfolio.\u00a0<\/span><\/p>\n

And in this case, ETFs are a great option. This explains why they’ve gained so much massive popularity in the last two decades. Most ETFs offer an annual return percentage of about 10%.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

For over four decades now, people have banked on stock investments for wealth building, representing smart work options. In investment, your money works for you. If done right, stocks are great options for high profit. However, there’s always a challenge when it comes to first-time investing. Beginners are always concerned about how to start investing in stocks. In this article, you’ll learn what stock investing is and how to start investing.<\/p>\n","protected":false},"author":1,"featured_media":85,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[21,22,5,12],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":5}},"acf":[],"_links":{"self":[{"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/posts\/39"}],"collection":[{"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/comments?post=39"}],"version-history":[{"count":1,"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/posts\/39\/revisions"}],"predecessor-version":[{"id":40,"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/posts\/39\/revisions\/40"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/media\/85"}],"wp:attachment":[{"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/media?parent=39"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/categories?post=39"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/localhost\/etf\/wp-json\/wp\/v2\/tags?post=39"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}