If you’re looking to get your feet wet with trading or investing, there’s arguably no better time than right now to get started.
Seriously. Between positive stories in the news concerning the health of the market and more accessibility than ever for newbies, the world of stocks is far from the sort of “good old boys” club that many people perceive it as. With the barrier to entry lower than ever for beginners, ask yourself: what’s been holding you back?
Think that you don’t have enough cash on hand?
Assume that the jargon is too much for you to handle?
Feel like investing just isn’t you?
Below we’ve outlined the three top seasons why you should look at the stock market as an open invitation if you’ve never invested or traded before.
There’s So Much Education Out There
This might seem like both a blessing and a curse, but the amount of information online about the stock market is absolutely staggering. Simply put, it’s a far cry from the day of scavenging through books and gate-keeper gurus to get vital information on the markets. Whether you’re looking for trade options online or simply a glossary of investment terms, such knowledge is available at your fingertips thanks to a quick Google search.
Don’t underestimate the power of blogs and educational courses that are common for investors today. People from all walks of life, from college students to stay-at-home moms and beyond, are getting started with stocks without a “formal” education, so why shouldn’t you?
You Don’t Need Much Money to Get Started
Despite popular belief, you absolutely do not need big bucks to get started with the stock market.
Sure, everyone wants to bank on that “big return” investment that’s going to turn them into a millionaire overnight, right? However, it’s much more prudent to take a sort of “slow and steady” approach to the stock market. For example, you can begin your journey by using only discretionary income or a sort of “cookie jar” fund of cash that you set aside on a weekly basis.
While there is no “right” amount for newbie investors, between $500 and $1,000 dollars is considered a solid starting point. Establishing an initial nest to spend on stocks may seem like a daunting task, but can be done quickly if you prioritize stocks over unnecessary spending. From sacrificing a few nights out to using savings apps like Acorns to help you, building up your initial capital can be done sooner rather than later.
You Can Manage Your Own Time
Getting started with stocks doesn’t necessarily mean sitting in front of a screen for hours and hours on end. While stocks do indeed require more of a time commitment versus mutual funds, you have total control in regard to how you spend your valuable time. Between alert apps to keep you informed to taking a more “hands off” approach to your stocks, don’t assume that you can’t invest while still carrying on a regular 9-to-5 job or social life.
Don’t let naysayers or assumptions stop you from beginning your journey with stocks. Considering that it’s easier than ever to jump right in, simply keep realistic expectations and understand that investing is a marathon, not a sprint.