I have made all of these videos about investing. But I never told you how to start investing and what you should keep an eye on. In these series “Start investing” i am going to tell you how to start your investing journey.
00:00 What to do, what to do…
Let’s say you want to get started with this whole investing thing. And the amount you have, is not enough for a house. But leaving it on the bank doesn’t do anything as well. You should invest your money in something. So where should you invest in? Zoom? Tesla? Amazon? You hear so much about these companies but is it smart to invest now in them? Are you to late?
02:09 Step 1: How do I make money
We actually know very few ways to make money. For example we know the way of making money by exchange our time and effort, the same concept goes for money itself. When you leave money laying around money just gets devalued over time. This is why it is important you need to let money, grow into more money. But how do you start growing money into more money?
04:42 Step 2: What are stocks and shares?
To be honest it’s just 2 words. In the past, you would have a piece of paper that would say:
The one holding this piece is the proud owner of this particular company. At least, for that share. For stocks that is traded on the stock market. And stocks do not have to be particularly of one company, but could also be a group of companies and that makes a difference there. When you buy stocks, it could just be the fact that you are purchasing a share of Amazon, Facebook, google, and Microsoft depending on what and which stock you’ve purchased.
06:11 Step 3: How do I buy shares?
So, how do you buy your shares and stocks? Well, very simple. There are brokerage companies out there, that help you buy and sell your shares. In the past, you would call a stock broker, and tell them if you would like to buy or sell a certain stock. Nowadays this all happens digitally, and you could do this from your home. Now the next issues arises, good that I can use a brokerage account to buy stocks and shares but what is that? Banks offer all kinds of service, like a savings account, a checking account, lending money to you so you can buy a home and many major banks also offer the service to an investment account. And using such investment account, you can buy and sell stocks. But even in this world of stocks, there are brokerage companies that just do only one thing. There are a ton online brokers like in the US you have TD Ameritrade, Fidelity, robinhood, m1 finance. Each country has their own rules and regulations and therefore, not all online brokers are available worldwide.