Buying Stocks for Beginners: A Guide

Published on: 26 April 2018 Last Updated on: 30 October 2024

Investing your money wisely is one of the best things you can do for yourself and your future. It’s never too early to start investing your money so that it will grow.

Buying stocks for beginners can be scary, but there is plenty of guidance available. This is especially true if you are looking to buy US stocks outside of the United States, in which case you´ll need the help of a broker to access those markets.

If you are new to the world of stocks and investing, you will undoubtedly have lots of questions and will need to take the time to learn some basic concepts.

Buying Stocks for Beginners: A Guide

Check out this guide to buying stocks for beginners.

Why Invest?

Investing is a way to make your money work for you. Rather than sitting idly in the bank, investing your money in stocks is one way to help achieve your financial goals.

Though the stock market may have its ups and downs, it has historically averaged a 9% return on investments.

How Much Should You Invest?

How much to invest depends on your goals. This is something to discuss with your financial advisor or brokerage firm, but a good rule of thumb is to contribute about 10% of your income to your investment portfolio.

Basic Types of Investments:

There are many options to invest in, but the basic types of investments include Stocks, Bonds, Cash, Mutual Funds and ETFs.

We recommend you consult with a reputable financial advisor for suggestions on how best to distribute your funds.

How you choose to invest will boil down to how conservative or aggressive you feel most comfortable regarding your finances.

For more information on investments be sure to check out thinkorswim vs tastyworks.

Investing Actively or Passively:

Active investing means selecting investments that are actively managed by professionals, with a goal of beating the market and achieving greater returns. Whereas passive investing is to simply try to match the market’s performance.

The choice of whether to invest actively or passively essentially boils down to how much time you want to spend studying the market. Active investing typically requires a potential investor to do extensive research into individual stocks.

Choosing the Right Stocks to Invest In:

For a beginner, it might be wise to consider certain types of stocks that are good long-term investments. It’s important to take your time, learn the basics, and to research into the ways stocks are valued.

Another thing to educate yourself on is the difference between investing and speculating. While investing is typically designed for sustained returns over the long haul, speculating is a dangerous way of chasing fast money.

Getting Started:

Once you understand the basics of buying stocks, you’ll want to open a brokerage account. Shop around and study the various brokerages to learn about their services and fees.

As a beginner, you will want to find a brokerage with features to guide you through the stock selection process.

Buying stocks for beginners can be an exciting process, and watching the return on investment as your money begins to grow can be a source of great satisfaction.

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How to Save more Money?

In every person's life, there is a time when we start to set different decisions for ourselves. Someone is probably thinking about quitting smoking, someone else starts commuting to work by bike and somebody wants to find more time for the family. If you don’t really know what to do, I strongly encourage you to save money. Each of us likes to be aware of the amount of money in our bank account, wallet or just likes to look at the savings we have accumulated. I know that it's easy to say and much harder to implement, so I've prepared some useful tips for you on how to save more money every day. For starters, you can go shopping only with a list of what you really need to buy, it will protect you against spontaneous and ill-considered purchases of products you don’t even need in the first place. Remember that it’s essential to have a strong will and to stick to the plan. Eco-driving: If you’ve got a car, economical driving is a great way to save fuel. Keeping your RPMs low and not stopping quickly at the last moment but rather slowly rolling towards the red lights can save you a lot of fuel. Verification of the bank costs of our account: it is worth checking from time to time whether it’s not too expensive to have a personal account in your bank by chance. In times of fierce competition on the market between the best national banks, there is no problem with finding a better offer. Less TV, more movement: Instead of wasting time on the couch, it is better to move, even if you walk. Your weight will drop, your mood will improve, and your wallet will become a little thicker. Planning: Planning everything that can be scheduled is an easy matter for the perfectionists. They love to have everything arranged and prepared as early as possible. Planning avoids sudden and massive expenses. A simple example: a school layette. It has always been known that the school year begins on 1 September, so there is no problem to start saving money to buy books or utensils a few months in advance. It is also possible to plan holidays well in advance, a large amount of time will help us to save money. Bills: Negotiating with utility providers, current bills consume a large part of every family's budget, so I see no reason not to try to reduce them. It is worth checking whether it is worth changing electricity supplier. I also encourage you to regularly check the offers of mobile phone operators or Internet providers. If it is cheaper somewhere, it is worth trying to negotiate better conditions with the current company. Motivation: Mobilizing yourself to make savings without a goal is, in my opinion, a little pointless. That is why I think it is worthwhile to find the motivation to save. It can be a dream trip, buying a new car or securing your child's future. Knowing what you are saving for makes it easier to get down to business. The internet: Learning foreign languages over the Internet, there is no cheaper option, and with a little bit of self-denial, you can achieve great results. Car-sharing: Carpooling, a.k.a. joint commuting to work, school or university and all other places you just have to get to. Just ask your co-workers or your neighbors. Many carpooling services unite the interests of people and you can make new friendships this way! Do not forget that it’s a very environmentally friendly – look at the other cars when you commute to work. They have at least 4 seats and most of the time only 1 person is in the car. Just imagine how many cars would disappear from the roads if four people wherein one car instead of one person in each car. This is just a waste of gasoline. Many people are still afraid of credit cards, but using best credit cards wisely saves a lot of money, not just on Moneybookers. Food: No more wasted food! Statistically, the family throws away food worth 20 euros every month. It is hard to imagine a greater waste. So it’s better to buy less and possibly buy the missing products later than to push the fridge and then throw away the overdue food. Shopping: As we know, there are many examples of smart and rational shopping. For example buying winter tires in the summer or Christmas presents... just after Christmas. Be your own dentist: Taking care of your teeth, we can guess that it is always much cheaper to spend a couple of dollars on a toothpick and a toothpaste than waste hundreds and possibly thousands of dollars on treating them. Healthy diet instead of supplements: Europe is the leader in the field of buying all kinds of medicines and pharmaceuticals. We spend vast amounts of money on it and it’s just a waste of money. Why buy a vitamin C supplement if you can, for example, drink fresh juices or eat fruit? It goes out cheaper, and certainly tastier and healthier. Looking through your wardrobe: Going shopping for clothes only to have fun with your friends is a very simple way to waste tremedous amounts of money. If you think you need new clothes, it's a good idea to review your wardrobe first and assess whether something is missing in it. It can be an opportunity to get rid of damaged or too small things. Subscribing to newsletters, I am myself registered for newsletters of several shops with computer components and regularly get codes for discounts of 10% or 20% each. For post-season holidays, it is better to plan your holidays in June or September, for example. Prices of trips and hotels are much lower then than in July and August, and in many countries, the weather is still guaranteed to be at least good. Moneybox - an old but still effective way to save money. I have it myself and for years I have been throwing little things into it, which are in my wallet. This way, without any effort, I can raise a lot of money that otherwise would go to waste. Currency exchanges at internet exchange offices are much cheaper than permanent ones, not to mention banks. I am of the opinion that a lot of work in your home can be done by yourself. For example, painting walls, grouting, or installing panels. Making sandwiches to work is sometimes a nuisance, but it pays off. A healthy lunch will satisfy hunger better than an expensive snack from a scrubbing machine or fast food restaurant. Buying second-hand items: I’m not only talking about clothes, but also computer games and electronic equipment. A great way to save a lot of money is to buy a new car, which officially is no longer new. Showroom cars or the ones that served as a test modelsare almost in a perfect conditionjust like the new ones, but 20-30% cheaper. Drinking water instead of carbonated drinks is not only much cheaper, but it is also incomparably healthier. If you want to save on buying water, consider installing a reverse osmosis filter in your home. Selling unnecessary items - something to us is just rubbish, but it may be useful to someone else - to such an extent that they will be ready to pay for it. As we can see to save you don’t need to do amazing things, it is enough to focus on simple activities that we do every day and think about what to do to save on it. Above I presented a few methods of saving more money, but each of us can conclude what level of his monthly revenues he wants to keep and what goals he assumes to save his money. Wouldn't it be worth to just start and try an check for yourself which method works for you? Let's start today and not tomorrow. Read Also: Use These Tips To Save Money When You Move Your Business To The Cloud How To Save Money When Shopping Online

How to Pick Crypto Exchange?

Only a few years ago, people were skeptical about cryptocurrencies. Nowadays, blockchain technology is a leading investment direction and profit source. Hardly someone can be found on the planet who hasn’t heard about Bitcoin or Ethereum. However, there is still a stereotype about the digital currency market. Few people are involved in it since most people think it’s a complicated and risky industry. Yes, the likelihood of losing all your money is high if you are completely ignorant about digital currencies. To avoid such an unpleasant situation and, on the contrary, start investing in cryptocurrencies and making money, you should educate yourself about the market. So start your journey by picking a good crypto exchange. This guide will teach you how to identify a reliable digital currency exchange and make safe transactions. What is Cryptocurrency Exchange? Cryptocurrency exchanges are digital platforms where people can sell the currency they have or purchase another one. For example, on such platforms, you can convert BNB to MATIC. Moreover, besides crypto, your exchange destination can also be fiat currency, e.g., by giving BNB, you can receive US dollars. After performing currency exchange on the platform, you can either keep the money in your cryptocurrency wallet or transfer funds to your bank account. How to Choose a Reliable Crypto Exchange? Unfortunately, the availability of hundreds of crypto exchanges makes it difficult to choose a good one. Investors worry about the security of their funds and don’t want to meet scammers. Here are a few criteria that will help you identify a reliable instant crypto exchange. 1. Pay Attention to Security Procedures One of the reasons investors become victims of scammers is that they don’t spend enough time verifying the platforms’ authenticity. First of all, you should check each platform’s Terms and Conditions and Privacy Policy sections to ensure that a legitimate company manages the website. But don’t entirely trust this information. Always make sure to check the exchange’s reputation on the internet. Finally, read customer reviews and feedback to learn what users think about the platform. 2. Availability of Multiple Payment Methods Matter Crypto exchanges accept payments via credit cards, PayPal, and digital wallets. Most platforms also allow purchasing crypto by paying via other digital currencies. The exchange must accept payments via credit card or PayPal for beginner traders to acquire their first coins. 3. Large Variety of Supported Currencies Almost all exchange platforms convert famous currencies like Bitcoin and Ethereum. However, few people know that there are thousands of digital currencies. Unfortunately, exchanges don’t support all of them. Hence, investors should choose a relatively popular cryptocurrency, on the one hand, and a platform that supports transactions to and from this currency. 4. Transparent Transaction Fees Before choosing a crypto exchange platform, make sure that it has a transparent transaction fee policy. Unfortunately, some exchanges have hidden fees that investors notice after making several transactions. Final Thoughts Cryptocurrencies are good sources of income if you succeed in choosing a reliable exchange platform. Several criteria can help you with this task. First, make sure that the platform’s operation is legitimate. It should also support several currencies, payment methods and have a transparent transaction policy. Read Also: The Profit Revolution: The Best Bitcoin Trading And Investing Platform How to Buy Bitcoin From Norway How To Become A Successful Cryptocurrency Trader In 5 Easy Steps

Home Sweet Home Improvement: How to Find the Best Home Improvement Loans

It's estimated that in 2018, Americans spent nearly $340 billion on home remodeling projects. Home improvement loans are one of the best ways to sort out the problem of home renovation. If you're planning to make some changes to your home, you may find that a home improvement loan is the only way you can get the job done. But finding a home improvement loans isn't easy, and sometimes it can be difficult to figure out how you can find the right loan, at the right price. Below you'll discover how you can find the best home improvement loans for your renovation project. Read on, and you'll discover how you can give your home a fresh look, without having to wreak havoc on your finances. Decide What You Want to Use the Loan For: Before taking out the loan, it's a good idea to think about how you're going to spend the money associated with the loan. In doing so, it becomes easy to work out how much you'll need to borrow. This then prevents you from over-borrowing and ending up with more debt than necessary. Now, if you don't know how much a particular home improvement project is going to cost, it's probably worth speaking to some contractors. If you can provide these contractors with an accurate representation of what you want to achieve, they should be able to give you a quote. If you can, try to speak to more than one contractor. This'll help develop a realistic average of what the project is going to cost. How Can You Fund the Home Improvement Project? There's more than one financial 'instrument' you can use to fund your home improvement project. For instance, there's the typical route of obtaining a home improvement loan. Now, home improvement loans can often sound like a good idea, but you'll find that such loans aren't always the best option. This often comes down to the fact home improvement loans tend to be unsecured, and this makes them a risky bet for lenders. This risk can also mean that the interest rates are going to be high. On top of this, you'll find lenders will offer relatively short repayment periods associated with these loans. The other option is to go for a personal loan. Again, this kind of loan is unsecured, and this can make such loans pricey. But, if you have good credit and a steady income, lenders might be willing to offer you a personal loan at a reasonable rate. One of the good things about a personal loan is that you may have a favorable payment term that gives you plenty of time to pay the money back. If you'd like to learn how you can find the best personal loans, check this out. There's also the option of funding your project using a credit card. Now, for many people, this should be considered as a last resort. This is because the interest rates on a credit card can be very high. But if you can find a credit card that offers 0% APR, this might be a worthwhile option. Speak to Many Lenders: Once you have a decent sense of how much the project is going to cost you, it's the time to approach some lenders. It's worth noting that some lenders will have different requirements to others. Often, you'll have to fill out an application, and the information you provide will determine whether you receive the loan. If you find your application is successful, you may have to approach another lender. You may also need to think about funding your project, using a different strategy. Manage Your Project Carefully: Once you receive your funds and begin remodeling, it's vital you manage your project carefully so that it doesn't go over budget. If this happens, you'll need to lend more money, and this can increase your debt burden. At the very least you need to keep a close eye on the contractors and ask them about their progress daily. Ask them to provide you with projected deadlines, and then check in with them to ensure they're going to meet these deadlines. It's essential you do this, as contractors often charge you a daily rate. If the project goes over schedule, you may end up needing to spend more than you budgeted for. Can You Reduce the Price of the Project? Before the project begins, you might want to ask your contractors if there's anything you can do to help lower the cost of the project. If you take certain cost-cutting measures, you may find that you don't need to use the entire loan. This then means you can repay the loan faster, thereby reducing the amount of money you spend on interest payments. Taking this step is important, as it can reduce the stress associated with having to find the 'perfect' home improvement loan. For instance, the contractors might say that things will work out cheaper if you source the materials needed for the project. You can then ask them what they need, and you can go to your local hardware store and order these items. You might also want to ask the contractor if there are any simple tasks that you can help them with. So, if you're looking to renovate a bedroom, there may be some closets that are 'built into' the room, of which you no longer want. If you take the time to remove these closets, the contractor doesn't need to spend their time on this task. This then lowers the amount of money they'll charge you as their workload is now reduced. Do You Know How to Find the Best Home Improvement Loans? If you want to give your home a fresh look, home improvement loans can help you get the job done, without having to spend all your savings. That said, you want to make sure you do everything you can to limit the amount of money you actually need to borrow. You also want to make sure you speak to a broad range of lenders so that you can find an affordably priced loan. Yes, it can be scary to borrow money for a home improvement project. But if you follow the tips in this post, you should be able to minimize your stress levels. Thinking about remodeling your kitchen? Check out this post to learn about the best countertops you can use. Read Also: Lining Up For A Loan – How To Secure A Good Loan 7 Tips To Increase The Value Of Your Home Best Home Buying Tips For First Time Buyers Invest Real Estate In Detroit: 7 Things You Need To Know Before Buying Your First Investment

Buying Stocks for Beginners: A Guide