Stocks & Bonds: What Are They?

Do you want to invest in the stock market but you don’t understand all of it? I definitely understand how you feel. Understanding how to invest in the market can be difficult and very complexed. Let’s get started by understanding what stocks and bonds are.

A stock is a partial ownership of a particular business or corporation. Once you purchase a stock(s) with the company, you then become a shareholder of that corporation. You can buy a stock through a stock brokerage. There are two types of stocks you can purchase, common stock (speaks for itself) and preferred stocks (exclusive, similar to bonds).

A bond is an investment loaned to a company or government for a period of time- this can range from 3-15+ years. As the bond matures, you gain profit from the ending term. There are seven types of bonds that pertain to their own investment purpose: high-yield bonds, municipal bonds, GSE bonds, Treasury bonds, investment-grade bonds, foreign bonds, and mortgage-backed bonds. Bonds have not maintained their credibility within the past few years due to inflation and recent political events. However, it thoroughly depends on the individual investor to make his on her decisions for their portfolio diversity.

There are also other ways you can make orders in the stock market such as stop limits, futures, options, etc. Young or old, investing is a decision away and perfect time to get started is…now!

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Stock Talk: F.A.A.N.G Stocks

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!

Stock Talk: Don’t You Lose Money?

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.

Stock Talk: Why Aren’t Black Women Investing?

It’s not that I don’t think we aren’t investing, it’s the fact that investing is not promoted in the African American community. Besides idols such as Daymond Jon from Shark Tank and Debra L. Lee, owner of B.E.T., there aren’t many black women (or people for that matter) that I know who are stock investors. Though to my surprise, there are a lot of black women who are real estate investors, why not stocks? Is it because it is a male-dominated community? Or perhaps we have been portrayed as the black single mother who only works from job to job?

Nonetheless, stock investing is taught because it is the choice of the individual. Regardless of your race or gender, stock investing is for everyone! Though this game is tough, it takes great knowledge and patience. All of the stock investors I know are wonderful people who are always willing to share great lessons from their mistakes. How did you find out about stock investing? Like and comment below!

Stock Investing 101: Long Haul

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.

Closing Disclosure

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

Stock Investing 101: Let’s Do This!

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.

Goals

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.

Financial Education

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”.

Note:

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.

Closing Disclaimer

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.