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