How to Start Investing Pt. 1

Today’s post is going to be over on how to actually start investing in stocks and how you want to go about doing it. This first part is soul-searching. The first few steps you want to do is about whether you’re ready or not. The first step in this process is asking yourself, “Can I lose money or Can I withstand a loss of money?” the stock market is a dangerous place for beginners, this is why it’s important to know the risk, you can lose everything. Step 2 is finding out if you can put in the work, are you willing to research companies, finding new investing ideas, if you’re throwing money at stocks randomly, you might get lucky, this is basically gambling. This is why it is important to actually put in the work, if you’re not willing to put in the work you’ll lose money. The third step is to find the investor you are. The first type I call the extreme investor, this investor, like Warren Buffet, could hold a stock for 10+ years because like Warren Buffet said himself, “If you don’t feel comfortable owning a stock for 10 years, you shouldn’t own it for 10 minutes.” The second type is the normal long-term investor, this investor may hold a stock a year to 5 years at a time. The third type is obvious, the short-term  investor is a person looking for something under a year. The last type is a day trader, this investor is trading constantly, by day, week, or month they are trading. You’re job is to find to out what investor are you looking to be.  In the next part I’ll tell you what to look for when researching a company to invest in.

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