On a daily basis we hear lot’s of NEWS related to the Stock Market. Like Elon bought 9.2% stake in twitter and the Twitter stock surge upto 30%. And these types of things always become headlines and common people also think of investing in stocks. After the opening of the market some stocks do really well and make investor profit. On the other hand some are losing as well. But the best way to get profit is to hold your position for the long run and never panic sell.
Basic of Stocks –
Investing in Stock means buying small ownership in the public trading company. Investing in stocks is one of the ways to put our money on work and let it grow with time.
Benefit – Investing in the stock market is best as compared to storing our money into bank accounts. Because most of our savings accounts only pay 0.05% on deposits. On the other hand, the historic return of the stock market is average 8-10% annually.
Key point – The best return hack in the stock market is to invest for the long term and put our money into a well diversified portfolio.
For example – S&P 500 index is a basket of 500 large US stocks. And the historic return rate of this stock is around 10%. And if anyone invested $10000 in this stock. Assume the return rate (10% ) remains the same for the next 40 year. The closing balance will be worth more than $450,000.
However, the stock market faces many ups and downs on a daily basis. As we are all aware about recent concerns like high inflation rate ( 1), invasion of Ukraine, increasing interest rates, and COVID-19, affect the market alot. But the people with a long vision always win and profit.
Investing in the stock market is very easy and each of us can invest in our favorite stock by following simple steps –
1) Decide an Exchange – A stock Exchange plays a vital role while investing in the stock market because it helps to put our buying and selling orders in the market. And we have a variety of stock exchanges available in the market. But they all have different trading fees, withdrawal fees, the user experience, connectivity and many others.
Recommended – If you want to buy and sell stocks in Canada. The wealthsimple is one of best Stock Exchange with 0% commission fee. Moreover, you can also get free stocks by using this link.
2) Open an account – well there are a variety of investment accounts available in each exchange and it depends on your situation to choose one of them. The main account types –
– Standard Brokerage Account ( Taxable brokerage account or a Non retirement Account )
– Retirement Account.
– Education accounts
– Investment accounts for kids.
3 ) Add Funds – After selecting a particular Exchange of your Choice. The next step is to complete your profile and fund your account. And it totally depends on you, like how much money you want to invest in your portfolio.
4) Select a Stock or ETF – After funding your investment account you just need to put the ticker symbol like for Amazon [ AMZN] in the search bar. And you can access your favorite stock and buy one or multiple stocks at same time. Moreover, some companies also offer stocks in fractions. Which means you can buy a part of Stock if you are unable to buy the whole share.
5) Manage your Portfolio – The best advice for best return is to invest for a long time and choose the best stock based on historical performance. Moreover, you can also get advice from a Financial advisor to invest your hard earned money.
