Are you ready for your money to make money?
Investing in the stock market is an excellent way to build your wealth. The next question for beginners is how do you start? For those of you in this situation, here are a few steps to help guide you as you begin your investment journey.
1. Decide how you are going to invest in stocks
There are basically two ways to approach stock market investing. Either you can do it yourself or you can hire someone to manage your investments for you. This is your choice but we strongly believe that understanding why and how you make money is absolutely critical. If nothing else, by understanding your investments more, you'll make better choices even if you decide to hire someone to manage your money.
2. Open a brokerage account
An online brokerage account likely offers your quickest and least expensive path to buying stocks, funds, ETFs, etc. There are also many new app based accounts popping up every day, such as Robinhood or Acorn. So how do you choose? Well, we're going to say something different than most. In the beginning, you actually don't need to choose a brokerage. Our goal for you and all our clients is to start with a simulation. In our opinion, the best out there for learning is thinkorswim. You can sign up for a free account without moving a single dime and we'll show you how.
3. Figure out your strategy
Here's where it can get tricky. There are stocks, ETFs, mutual funds, futures, options, and many more. Confused or scared? Here's what we recommend. You need to educate yourself. Think about anything you have done in life. There was always some portion of training and then practice. In school, there are lesson plans and then homework to practice. The same holds true for driving a car, playing a sport, or even your job. For the training portion, obviously, you can work with us. But even if you decide not to, there is a lot of info out there whether it's Youtube videos or seminars. But this leads us to the next step.
4. Practice, Practice, Practice
We can't stress this enough but once you have built up some knowledge and have a strategy on how you are going to make money, you need to practice and test it. If someone gave you a musical instrument, would you watch some videos or read some online articles and expect to do well playing the instrument? How long should you practice? In the end, that's up to you but at Success Options Group, we have a detailed plan for all of our clients and specific metrics before they go live with real money.
5. Have an Exit Plan for each position
The biggest reason people lose money is that they don't know when to get into a trade or when to get out. You need to determine rules for how much you are willing to lose in each position and how much you are looking to gain as well. Sure, it is possible that this stock can just keep going up forever. Unfortunately, it is not very likely. Remember, Hope is NOT a strategy.
Financial insecurity is one of the main sources of anxiety in life. People dream of having peace of mind, knowing they can meet their needs and supply some comforts for themselves without worrying about a sudden recession or financial demand. When you are educated on how to build your financial health and security, the fear of uncertainty will not govern you, and the turbulent economy will not fluster you. Your dream of financial independence is one click away.