There are so many stocks. And you can invest in all of them. How do I choose the best stocks to invest my money in? Well, in this video I am going to tell you, what the best stocks are.
00:00 So you want to invest?
There are mutual funds, ETFs, Forex, Cryptocurrencies, and many more. Its sometimes overwhelmed with all the things you can invest my money in. And you just wanted some shares in Tesla, and that’s it. But that’s not how I works. So how does it work? What is the easiest way to go?
02:04 Step 1: What should I buy?
The moment you open an investment account through an online broker, you’ll see you can buy individual company shares, Sometimes you could even buy foreign exchange currencies like the dollar, Japanese yen, British pounds, and even the Euro, and there are even cryptocurrencies. The possibilities are endless. So where do you need to look at? The reason why I don’t invest in forex is that one forex trading is you are trading foreign exchange and not the ownership of companies. And for my research up front I rather look into businesses than foreign exchange. And also the second reason is that foreign exchange do not raise in value over time, but just go up and down, and therefore is more suitable for day traders with a huge amount of money to trade with.
04:04 Step 2: Why index funds?
An index fund is literally as the word says it. The fund is where investors will pool their money, and multiple investors could invest in the same fund. And then that fund would be managed by a fund manager. And this fund manager decides which companies this fund invests in. Now, once you combine the index, and the fund, which is the pooling of money of investors. You get the index fund, and an index fund actually just automatically invests in all these companies of the index. It’s super easy, because with as little as 1 dollar, you may able to invest in such an index fund. Not that investing 1 dollar will ever a huge difference in your wallet.
07:11 Step 3: Isn’t investing Risky?
I just told you the story how good index funds are a fund manager manages the fund, nothing to worry about the moment you do invest 10,000 dollars it already has a variety of stocks and companies. Well, investing in stocks doesn’t have to be risky at all as long as you know what you are doing. When you take a look at a savings account the concept is very simple. You put your money on the savings account, and as long as you leave it there, the bank can use that money for their own purposes. And since you’ve left it on your savings account, the bank will say “You know what because you left money on your savings account for me to use as a bank, I’ll give you an interest of 0,01% annually in return for using your money”. The bank will give you that interest, guaranteed to you and that is super safe, and you know what you will get as a return nice isn’t it? The thing is just that’s it’s super low.