Investing in Stocks for Beginners: The Ultimate Guide to Investing With No Finance Background

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Stocks and investment can seem intimidating to the uninitiated. Even for those with a general understanding of the markets, the terminology, and the concepts behind them, the process of putting together a well-diversified portfolio can seem like a minefield.

If you’re reading this, then you’re probably looking to get started with investing, but you might need a little help navigating the choppy waters of the Stock Market. Luckily, you’re in the right place. Investing can be a complicated topic, but not in the way you might think.

If you’re looking to get started with investing but don’t know where to begin, then you can continue perusing below contents. In this article, we’ll take you through everything you need to know about investing before you get started.

What does Investing in Stocks Mean?

Stocks are an investment; they are not a bank account. You are not lending money to anyone or receiving a return on your investment. There is a certain level of risk involved in all investments, but there is also a certain level of return that comes with that risk.

Stocks are a contract between an investor and the organization that is offered it in the form of a share of ownership. The ownership of a company is transferred via stock certificates or via a stock exchange.

You are purchasing a share of a firm whenever you invest in it. In exchange, the company promises to give you profits, which is known as dividends. The portion of the profits that you get as a dividend is known as a dividend yield.

What you need to do to start Investing in Stocks

Stocks can be bought in a number of different ways. Asset classes, funds that invest in a variety of equities, mutual funds that pool money from many people to buy a big number of stocks, and exchange traded funds are all options. You can purchase individual stocks via a brokerage account or via a mutual fund. The brokerage account method is the most common way to purchase stocks.

You can go with a low-cost brokerage for a tax-advantaged portfolio or use a robo-advisor (online investment advisor) like Personal Capital or Trove. You can take advantage of a number of free resources to build a diversified, low-cost portfolio. Having a diversified portfolio is imperative and judicious implementation of the steps enumerated below will be handy.

1a. Make a decision about how you'd like to invest in the stock market. Many options exit on how you can start investment in stocks. You may adopt the ‘do it yourself approach’ whereby you opt to handpick stocks by yourself. Doing this will entail that you gather technical, fundamental and financial statements analysis techniques so as to ensure you don’t make investment decision based on sentiment.

 1b. Based on your outlined investment objective, you may engage the services of experts or brokerage firms to carry out the investment for you. Robo advisors may be deployed to ensure optimal maximization of your investment.

 1c. Investment may be initiated through your employer if you are employed. There may not be access to individual stocks for you but small contributions for accessibility to stock mutual fund is tenable in making room for regular investments with the long-term position in mind.

 2. Select and open an investment account. This is necessarily important as you will need a platform for buying and selling of stocks of interest to you. The account opening can be done by a Robo Advisor or a Brokerage Account. The decision to opt for any of this account opening type has to hinge on cost of brokerage commission, benefits in terms of assistance with information and knowledge sharing and proven track record. If you do not want to lean on doing most of the investment activities personally, then you might consider Robo advisor.

 3. You need to know the difference between investments in funds and stocks. Stocks entails investment in company stocks individually while funds involved pooling of funds together: this makes room for smaller investment amounts through mutual funds or exchange traded funds.

 4. Determine your budget for the investment project. Setting your budget for this project will depend on your chosen investment type, your income level and your attitude towards risk. A safer advice for beginner with meagre income is that they look towards funds investment. That said, diversification is also key, hence there should be a mix with the larger chunk of your money going into funds while the rest is channelled into stock. That is, an 80/20 rule.

 5. Maintain control of your stock portfolio. Managing and maintaining control of your portfolio is not all about checking your investment every minute and engrossing yourself with fear. Yes, you need to periodically check in to see what’s going on but the real deal is to look at your circumstances and then position your investment in a way that it is safe with and on low risk. That is why diversification of your portfolio across industries is imperative. You also need to keep yourself abreast of vital information so that you can take proactive action.

6. Take a long-term position. Embrace the focus of investing for a long term. Overtime, Stock investment have shown to be viable with this ideology. Despite whatever happens, the long-term average may be favourable for you.

The Different Types of Stocks

There are a number of different types of stocks that you can invest in. They range from stocks that are very safe and conservative to stocks that are very risky and volatile.

You’re going to have to decide which type of stocks you want to invest in. If you’re just getting started, you’re probably going to want to stick to the safer end of the spectrum.

The following are some of the most common types of stocks:

Utility Stocks: A utility stock is a somewhat safe bet because it is supposed to provide consistent and predictable dividends. They are usually less volatile than other stocks but provide lower returns.

Tech Companies: There are risks inherent in different sectors but most tech companies have shown tremendous potentials for growth. Amazon, Microsoft, Netflix, Apple Cisco Systems all show growth potentials.

Biotech and Medical Stocks: Biotech and medical stocks are risky because they often deal with new and experimental drugs. These stocks have a very high risk of failure and are not for the faint of heart.

Energy Stock: Energy stocks are however tricky because they are frequently composed of a single commodity, such as oil, gas, or coal. They are frequently vulnerable to price fluctuations.

Gold and Silver Stocks: Gold and silver stocks are also known as commodity stocks. They are often very volatile, but they also offer the potential for higher profit margins in a rising market.

How to Buy Stocks

There are a few ways to buy stocks. You can purchase shares on a exchange, you can purchase shares on an over-the-counter (OTC) market, or you can purchase shares with a broker.

Purchase Shares on an Exchange: The most common way to purchase stocks is on an exchange. You can find a list of all the major exchanges at InvestingStocks.com. One thing you need to keep in mind is that most brokerage firms will not allow you to trade stocks unless you have a minimum amount of money in your account. Make sure you have at least that much in your account before you purchase your first stock.

 The 3 Most Important Lessons About Investing in Stocks You Need to Know

There are a lot of misconceptions about investment in stocks out there. Here are the 3 most important lessons you need to know about stocks:

• There really is no such thing as a perfect statistic. Different players in the stock business both the highly experienced and beginners have various ways of analysing stocks and drawing conclusions. There is no quintessential number that delineates bad and good stocks. There are always fluctuations and volatility in prices is real.

•  Nothing is completely sure and rubberstamped. Most predictions and analysis do not completely turn out as predicted, even the ones done by highly placed professionals. Yields, dividends and prices of stocks may swing either way. Strategies employed to mitigate on this is the best way to go especially when long term position is factored into consideration.

•  It is a truism that buying low and selling high is a sure way to making profit. This translates to the volatile nature of the stock market. The bullish nature at some period in time does not permanently persist. Knowing when to go in and take position is vital if the objects of investing activities are to be met.

Conclusion

Stocks are an excellent way to build wealth. The more stocks you own, the better your investment portfolio will be. Owning a small amount of a few different types of stocks is better than owning a large amount of one type of stock.

There are a lot of myths and misconceptions out there about investing in stocks, so make sure you’re staying informed so you can make the most of your money.

6 Investment Apps You Can Use Today to Enhance Your Investments

 

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Investing is a great way to grow your money, but it can also be a daunting prospect. There are so many options and choices, and it can be challenging to know where to begin. Fortunately, technology has made investing a little easier. Many financial apps allow you to invest on the go, track your portfolio and stay on top of your investments. These apps can help you maximize your returns, identify underperforming assets and stay organized. This article will highlight some of the best investing apps available. Everything from budget investing apps to stock market tracking apps will be covered. Before diving into the nitty-gritty details, take a look at the following:

What Is Investment App Technology?

Investment apps are computer software programs that allow you to superintend your financial goals from the palm of your hand. Most apps are web-based, meaning they connect to a computer network via the internet. You can access them via a smartphone, tablet or computer with internet access. Investment apps can connect to stock brokerages, investment funds and brokerage accounts. They are a great way to keep track of your financials and track your investment portfolio. They can also be a great way to learn about investing and grow your money.

Best Overall Investment App

Betterment is an investing app that focuses on cost efficiency. The app charges a $30 monthly fee, but it also offers a low-cost investment strategy. Betterment takes a hands-off approach to investing, which is ideal for customers who want to learn about investments but don’t want to manage their money. The app provides you with a nice dashboard to view your investments and make basic updates. You can set up a portfolio of investments to track your spending, savings and investment goals. You can also set up a dividend reinvestment plan to automatically purchase additional shares of stock when they’re sold. Betterment’s Investment Strategy Lab provides you with various investment strategies to choose from. You can also connect your brokerage account to Betterment to track your portfolio and make basic updates.

Best Mobile Investment App

If you invest a lot of time on the go, you should consider investing through an app. BlackRock offers a wide range of investment apps to choose from, including mobile apps. The BlackRock mobile app offers investors access to their investment portfolio and tools to stay on top of their investments. You can view your portfolio balances, recent transactions and performance statistics. You can also set up push notifications to receive updates on the stock market while on the go. The BlackRock app also provides insight into your investments and shows how your spending and saving habits are linked to your investments.

 Best Stocks and ETF App

If you’re interested in tracking the performance of specific stocks or exchange traded funds (ETFs), there are a number of apps that can help. Robinhood is one of the most popular apps for tracking specific stocks and ETFs. The app lets you buy and sell shares directly from your phone without fees. You can track up to five different investments at one time. Robinhood offers no-fees trades for most securities, with some notable exceptions. You can view basic information about each stock and ETF, such as price, daily change and profit/loss from your investment. You can also track investment performance for the past six months. With Robinhood, you don’t need to pay brokerage fees or manage multiple accounts. You can keep track of your investments, monitor your portfolio and stay on top of market performance with a single app.

Best Bond Investment App

Investing in bonds can provide a steady stream of income. However, it’s important to understand the difference between a bond and a bond fund. A bond is a liability(debt) that is provided by government, a corporation, or a municipality. You typically get back a fixed amount at the end of the period. A bond fund is a group of bonds that have been pooled together. Both allow you to generate income while keeping your assets safe in a secure investment. You can track bond funds on your phone with Digit. The app lets you make your own bond portfolio depending on your investment objectives. You can also connect your brokerage account to track your investment and make basic updates.

Best Real Estate Investment App

Real estate investing apps allow you to stay on top of your investments in real estate. Zillow is a great real estate investing app to find investment opportunities. The app shows you homes for sale in your area and gives you information about the properties, such as price, square footage and beds and baths. You can also search for homes by price, bedrooms and baths. You can set up alerts to receive email notifications when a home matches your search criteria. You can also set up push notifications to receive updates on homes that match your search criteria. Real estate investment can help you vary your portfolio while also generating passive income.

P2P Investment App

Investing in private peer-to-peer (P2P) lending platforms can be a great way to generate passive income. Lending Club is one of the most well-known P2P lending platforms, and it offers an app for your phone. The app allows you to track your investments, view recent loan listings, track your lending performance and make payments directly from your phone. You can also keep track of your credit score and receive credit-related alerts. Investing in P2P lending can be a great way to diversify your portfolio and earn some passive income.

Final Words: Invest Wisely

Investing apps can be a great way to stay on top of your finances and track your investments. However, you must use them wisely. These apps are only as good as the information they contain. Make sure you understand how each app works and what information it provides before making any investments. Invest wisely, and you will be able to benefit from the wide range of investment apps available today.

Investment Tips: Four Categories of Assets To Help You Build Wealth in 2022

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We all recognize that the purpose of investing is to generate wealth, but determining which investments would help us achieve our financial objectives can be tough. While the stock market may appear to be among the most obvious place to begin, it isn't the only one. Investing in the stock market isn't the only way to grow your money. Other methods of accumulating wealth are also feasible. It's easy to become overwhelmed when you first begin investing. There are numerous types of assets, methods, and investment advice available. That is why we are here to assist you.

This tutorial will go through four main types of assets and provide advice on how to generate wealth in each of them. Below, we'll go over four of the most prevalent ones.

 Real Estate Investment Trust (REIT)

A real estate investment trust (REIT) is a publicly listed company that possesses, administers, and manages a substantial real estate portfolio. The real estate investment trust (REIT) is the most prevalent type of REIT, and it pools assets from a multitude of investors, most commonly companies. Rental properties, shopping centres, apartments, residences, and other properties that generate income through tenants and/or property management are examples of real estate assets. Direct real estate assets account for more than 90% of most real estate investment trusts' assets. According to Statista, the market cap of all REITs in the U.S. reached $1.37 trillion in 2023, down from a peak of $1.74 trillion in 2021.

Investing in real estate investment trusts has a number of advantages. The fact that it is a passive investment is the most remarkable feature. Such that, unlike stocks, you will not need to actively manage your money. This might be a huge challenge, both logistically and emotionally. In addition, several real estate investment trusts are S&P 500 index funds. This will make your investment decision-making process even easier.

Investing in REITs, on the other hand, has certain potential drawbacks. One is that they are usually more expensive than stock purchases. This is due to the fact that they are often huge, professionally run businesses with a large workforce and high operating costs. To put it another way, they've got a lot going on. They also tend to trade at a greater price than smaller, less institutionally supported enterprises. This is due to the fact that they are large institutions with a high liquidity position.

There is still the reality that real estate is a high-risk investment. While this is to be expected with a market asset such as real estate, it can nevertheless be stressful for investors. It's because real estate values fluctuate with the market, and buying or selling at the peak or bottom of the market can result in big losses to your investment. For conservative investors who wish to create money incrementally, real estate may not be a good option.

Steps To Invest In REITs

• Understand what a real estate investment trust (REIT) is and how it operates.
• Be mindful of the potential dangers of REIT investments.
• Examine the benefits and drawbacks of REITs to ensure they fulfill your investment goals.
• If there is no existing account, open one with a trustworthy brokerage. 
• Choose a REIT to invest in and keep track of it on a regular basis.

 Exchange Traded Funds (ETF)

An exchange traded fund (ETF) is a form of fund that operates on a stock exchange much like a stock. ETFs trade across a pool of current investors, unlike open-end mutual funds, which are exclusively receptive to new investors.

There are several various types of ETFs to choose from, and they are divided into four categories: equities, bonds, commodities, and money market funds.

How To Invest In ETFs

1. Open a brokerage account. A brokerage account is crucial before one can buy or sell ETFs. A good number of online brokers already provide commission-free stock and ETF trading, therefore price is not really an issue. The best thing to do is to examine the capabilities and platforms of each broker. It is a good move to choose a broker that offers free educational benefits that new investors can reap from. Some good examples are TD Ameritrade, Schwab and Fidelity. There are so many other good brokers as well.

2. Make selection of your first EFTs. Passive index funds are often the best option for novices. Index funds are less expensive than active funds, and most actively managed funds do not outperform their benchmark index after a long period.

3. Make/place the trade. The process of acquiring ETFs is very similar to that of buying stocks. Look for the "trading" section on your brokerage's webpage; "trade" typically relates to either buying or selling an ETF. When buying or selling, follow their processes.

4. Be patient and let the ETFs work. It's crucial to remember that ETFs are specifically developed to be low-maintenance investments. It is not advisable to be frequently or often checking on what's going on. Indeed, over-trading is the primary reason why the ordinary portfolio investor underperforms the market over time. Therefore, after you've invested in some outstanding ETFs, the best suggestion is to allow them and let them whatever they're designed to do: generate exceptional long-term investment gains.

 Bond Funds

A bond fund is pretty self - explanatory like: a collection of funds used by investors to purchase bonds. Bonds are essentially promissory notes. Investors agree to repay the fund with interest at a later date, and the fund pays the interest to the investors now.

Investors can acquire a variety of bonds, including government, corporate, and municipal bonds. The interest earned on these bonds is paid out in a fixed sum every six months or years, with the payment period varied based on the type of bond fund chosen by investors.

How To Invest In Bonds

Because of the outlay amount needed, buying bonds might be more difficult than buying equities. There are a few options on where to purchase it:

• Investing through ETF. ETFs buy assets from a variety of firms, with some focusing on short-, medium-, and long-term bonds, or providing variety of specific industries and markets. Individual investors might consider a fund since it offers rapid diversification and does not require substantial purchases.

• Buying through a broker. There are numerous good brokers online through which a new investor can buy bonds. Following this approach an investor will be purchasing bonds from other investors seeking to sell them using this strategy. By purchasing a bond directly from the underwriting investment bank in an original bond offering, a new investor may be able to get a discount off the bond's face value.

• Directly from the issuing Government. Most sovereign Governments have set up a platforms on their treasury websites on making investment in bonds. Hence, investors can make purchase on Government bonds without doing so through a broker or agent thereby eliminating brokerage commission payment.

Mutual Funds

A mutual fund is an ETF that follows a specific investment strategy. There are numerous types of mutual funds available, each with its own set of investment objectives. Some may be more conservative, aiming for a lower risk level while still attempting to achieve a higher expected return. Others may be more aggressive, investing in stocks that are perceived to have a higher risk of volatility. Mutual funds like the Stanbic IBTC Dollar Fund (SIDF) invest at least 70% of their holdings in elevated Eurobonds, a threshold of 25% in short-term USD deposits, and a maximum of 10% in USD stocks. On the Cowrywise app, you can see the possibilities for some prominent mutual funds like the Nigerian Eurobond Fund (6.70 percent) and the United Capital Sukuk Fund (7.24 percent).

Conclusion

Now, it should be noted that not every investment is suitable for everyone. That’s because everyone has unique financial goals and financial circumstances. Hence it is critical to conduct thorough research before to making an investment.. You’ll want to make sure the investment fits within your financial goals and your comfort level with risk.

Fortunately, there are a wide range of different assets you can choose from to help you build wealth.