I’ll let you in on a novice secret and tell you that it took me a month to figure out what in the world acronym meant- I was being lazy but I had a general idea. F.A.A.N.G is FB (Facebook), APPL (Apple), AMZN (Amazon), NFLX (Netflix), and GOOG (Google). If you enjoy investing in the technology sector, it is crucial that you choose one of these five for your stock portfolio because these are the top leading stocks in the market. According to Investopedia.com, the combined market capitalization is over $3 Trillion. This power five also makes up 1% of the S&P 500 list. I put most of my investments into index funds, but it doesn’t hurt to have a few individual shares with a couple of these companies. Do you have any shares investing in F.A.A.N.G? Like & comment below!
One question I hear often when stocks come up in conversation: Don’t You Lose Money in the Stock Market?
This is one of many commonly asked concerns. I had this same impression many years ago, escpeciallly after what happened from our recent stock market crash. When it comes to stock investing, yes, you certainly can lose a lot of money.However, If you invest wisely, stocks can make millions for you.
Let’s say you had $1,000 aside from your emergency fund. Would you buy a Givenchy bag with that money or invest it into an agressive index fund? Let’s say you buy that goregrous bag. You sure will be stuntin’ for two seasons, but there is always something nicer out there and fashion is an ever-revolving industry. While you were busy keeping up with the Joneses, the other woman invested her $1,000 into and agressive index fund and made a 45% increase within’ six months (give or take).
It all depends on the individual, but consider looking at the value of stock investing. People lose money every day by overspending- not properly managing their finances, and buying on impulse. Yes, you can lose money in stocks, but you can also create more for your retirement.
I’m not talking about Pike Place, I’m talking about last week when two black men entered into a Starbucks in Philadelphia and had been arrested for “trespassing”.These two men were waiting for a friend and weren’t even able to use the bathroom because they didn’t make a make a purchase. All sound too familiar? Right when I thought we had enough of the race war for 3 years, now I can’t get a Dirty Chai without thinking that there have been black men arrested for waiting for someone to meet them for a cup of coffee? At this point, I cannot put myself in the store managers shoes and think he was just “doing his job”. There are hundreds to thousands of people who meet at Starbucks daily for business meetings, non-profit and activists events, but why did it have to come to this?
Viewing the market performance, SBUX (Starbucks) hasn’t been a very profitable stock for me to invest in (in my opinion). Silimar to TGT (Target), SBUX is more of a lifestyle brand than anything. And from recent price cuts to overall performance, it’s a little boring for my portfolio- but to each their own.
This event was very unfortunate and I hope the CEO, Kevin Johnson, will make an effort to meet the two black men and apologize to them for what they were wrongfully, and publically accused of. But as for me, I’ll continue to stick to my local coffee shops.
At this time in my life, I don’t work with any trades on Mondays. On mondays-being the first day of the week, the market changes very quickly within the first four hours in the morning. I’d much rather take my time to study the charts and make my move when market levels off (if that even happens).
With the markets I work in, I prefer to sell on Fridays since it is the last trading day of the week and many investors are buying. Have you ever heard of the quote, “Observe the masses and do the opposite”, well that quote certainly works in this field. Overall, do what you see fit for you and your finances. Don’t sell or buy on particular days because Mrs.Market tells you to. Sell or buy because you made that decision for yourself.
If I have one word for my stock investing journey thus far it is patience. Investing in the stock market is not for the faint of heart, but if you commit to studying the market, you can win. But before you jump in with the sharks, there are a few more things you need to have before you need to know.
The Right Brokerage for You
Most brokerages require you to open with $5,000 for a standard account, while there are others that don’t require money to open. Starting out, may I recommend you starting with a stock app such as Stash or Acorns to get your feet wet. When I started investing, I had as little a $5-$20 dollars a week. These app brokerages make it simple and explain step-by-step how the market works. Once you have more money and experience, check out the zero fee and commission free brokerages- these brokerages I have found to be wonderful companies that are great for the novice investor as well as the seasoned investor. I currently us Robinhood and Ally (TradeKing), but I certainly wouldn’t advise the novice investor to start here. Though there are other larger brokerages such as Fidelity, TD Ameritrade, and Chares Schwab, there are other companies (just as good) that require a fee and high commissions. If you choose to use a larger brokerage, they may have more varieties of stocks and funds, but if you could buy shares of AAPL (Apple) or AMZN (Amazon), why not get it with zero fees?
The Long Haul
Long-term investing is the best investing. Buy as low as possible, and when you sell, sell when everyone is buying and when the stock is reaching high records. For taxes, longevity, and maturity, hold your stocks for at least a year before you sell. From my personal experience (and still learning) you cannot be easily swayed by your emotions. You have to be strong in bull and bear markets.
Again, I am by no means a professional or paid to write this from a stock brokerage, nor responsible for your gains or losses. I am simply passionate about stock investing, looking to share more information to women of all ages about the stock market. Have I made hundreds of dollars, yes. Have I lost hundreds of dollars…unfortunately, yes. But Financial education means everything in this game. Study hard, stay calm, and secure your future.
Get over whatever is holding you back. -Sallie Krawcheck
Price is what you pay, value is what you get. -Warren Buffet
Want to invest in the stock market but you dont know how to start? Find out now and take notes.
Now, it’s absolutely impossible for me to give you all the information you would need know about stock investing in one blog post, but if you can learn from my failures, then you can learn a lot. Whether you’re a working single mother, stay at home mom, or simply wanting to get ahead your finances, the stock market is a smart way to go and a little education will get you ahead of the “average investor” or what is also known as a speculator.
Before you begin any new venture, you need to write down goals for what you want. How much do you want to make? Are you investing short-term or long-term? Are you investing to save up for retirement or investing for a big purchase within a couple years? Find out exactly what you want because that will determine everything.
Did you know that between the average doctor and a cocktail waitress, the waitress has more potential to become the stronger stock investor? Why? It’s because of the time she has to educate her self. If there is anything I could get across to you, it is to read, read, and READ! When I started, it was so confusing and left me frustrated at times, but I now know that everyone has their own style to investing and you cannot invest in a particular set of stocks because someone else has a “successful portfolio”.
Make the decision for yourself, and keep in mind that your favorite retail store brands may not be the best in the stock world- believe me, they owe ME money now.
Defensive VS. Aggressive
As you begin to educate yourself, you will learn about the styles of investing. The two I will share today really speak for themselves- The Defensive Investor and The Aggressive Investor. The Defensive Investor will take on more precautions, leaning towards managed funds, bonds, and a side of commons stocks. The Aggressive investor may do the same, yet work with more tech stocks, starter companies, and take on short-term investments that may be similar to day trading. As said before, everyone has their own style. Take time and figure out what works best for you
Beware of Mr.Market
Who is Mr. Market? Mr.Market is the news, stock advisors and stock bloggers that have all of the information you “need to know”. Though there are great stock analysts out there, he can be very manipulative and is filled with lots of opinions. He will tell you about what you should be selling, buying, and what your portfolio needs to look like. Mr. Market and I are good friends, but I don’t agree with everything he says or does. However, there a few websites you should check out that are great for novice and experienced investors: Investopedia, MarketWatch, The Motley Fool, and Bloomberg. As said before, everyone has their own style. Take time and figure out what works best for you.
I am not a certified professional, nor responsible for any of your gains or loses. I’m simply a passionate stock investor who loves to share my experience with other women/men who want to learn general information about the market. May I encourage you to study and evaluate before you make any purchase or sale in the stock market.