Investing your money in the stock market is a very good way of building wealth for your future. There are many key benefits of investing in the stock market. It protects your money from inflation, it helps you build up your savings, help you create a passive income, etc.
In this post, you will learn how to invest your money in the stock market as a complete beginner.
A lot of people out there believe that you must be a millionaire, a wealthy person, or an investment expert before you can invest in the stock market. But that’s a lie. Nowadays, anybody can invest in the stock market, whether you are an expert or a beginner.
Below are the simple steps to invest in the stock market:
1. Do Your Research
Before investing your money in anything, always do your research. One of the reasons most people lose money while investing is that they don’t do their research before investing.
Before investing in the stock market, try your best to learn what stock market investing is all about. Know the advantages, disadvantages, history, risks involved, and what it takes to be a stock investor.
Doing this first step will really help you become successful in stock market investing and even any kind of investment you want to do.
RELATED: 5 Important Things To Know Before Investing Your Money
2. Open an Investment Account
Opening an Investment account these days is now easier than how it was a few years ago. With the aid of your smartphone, you can open an investment account with an online broker without leaving your house.
Today, we now have a lot of investment apps that can help you get started with stock market investing.
My favorite investment app is the TROVE INVESTMENT APP. Below are the features you get to enjoy on the trove investment app:
(a) You can invest in over 4,000 Nigerian, US, and Chinese Stocks, Bonds, ETFs, and REITs.
(b) You can invest from as little as N1,000.
(c) Trading fee: 1% of the transaction amount.
Sign up on Trove to get $50 worth of free shares
3. Decide How Much You Want To Invest
To be honest, you need to know that to adequately invest in the stock market, you need to have enough sources of income.
Don’t go into the stock market with the money you will need in the next 1 month, 5 months, or even 1 year. You are meant to put money into the stock market and pretend like you’ve forgotten.
Now how do you decide how much you want to invest?
This has to do with your age, your risk tolerance, and your income. If you are still very young, I will advise that you put in a lot of money in the stock market.
This is because you have a lot of years ahead of you to take advantage of the volatility of the market.
You can also use the Dollar Cost Averaging strategy to invest. This is when you make smaller investments of an equal amount consistently over a period of time, into an investment.
You can decide to be putting an exact amount of money every month and even increase it later on.
4. Choose The Stocks To Buy
There are over 4,000 stocks available on the Trove Investment App. Deciding which to buy can require little work or research from you. But while choosing your stocks, please take note of the following:
- Diversify your portfolio
- Invest in companies you know and understand
- Avoid high-volatility stocks
- Learn the basics of stock investing
5. Continue Investing
The surest way to make a lot of money in the stock market is to invest in big companies and hold their stocks for a very long time. Over time, your investment portfolio will have a significant increase in value.
Watch the video below to know the different ways you can make money by investing in stocks.
