in today's video I'm going to teach you how to invest in stocks so today's video is a stock market for beginners video and I'm going to explain to you what are stocks how to invest in stocks how people get Wealthy by investing in the stock market and what stocks are best for beginners so let's get started I want you to know that the stock market is very simple so let me explain to you what stocks really are so let's just say that you own a business and so you're a business owner and let's say that
you want to raise a lot of money for your business to grow and expand so what do you need to do you need to find investors and a great place to find investors is in the stock market now in order for you to raise a lot of money for your company you need to sell a portion of your ownership in your company to investors and that's what stocks are stocks are just units of ownership in a company so if you buy stock in apple or Microsoft or Tesla you are an owner owner of the company
so you probably own a very small piece of the company but you are still technically an owner therefore one person does not own apple or Microsoft or Tesla so there are thousands of people that own stock in those companies so those companies have thousands of owners which are the stockholders now let me tell you how to invest in stocks so the stock market is a big marketplace where you go to buy and sell stocks to participate in the stock market you need an online brokerage account so there are a lot of online brokerage accounts to
choose from I'm going to leave a link down below to some online brokerage accounts that are offering signup bonuses with zero fees and there's no catch it will cost you nothing and some of these sign up bonuses they can be substantial so please be sure to check them out so you open up an account and then you transfer money from your bank accounts to your brokerage accounts and then you're going to have money in your brokerage accounts and then you're going to be ready to buy stocks so you want to buy stocks in good companies
that's because if a company does well then the value of the company increases if the value of the company increases then the price of your stock goes up and in many cases if a company is making a lot of profits the company will take those profits and pay a dividend to whoever owns the stock so you don't have to do anything to collect a dividend it just gets deposited into your accounts which is pretty awesome so this is passive income in its truest form now if you want to sell your stocks it's very easy so
you may want to sell your stocks for whatever reason such as you just want to cash out maybe you don't like the company anymore maybe you want to sell your stock to have money to buy a different stock so you're free to do as you please and again this is all free no fees zero commissions so when you sell your stocks you'll have money in your brokerage accounts because again you sold your stocks and whenever you want you can transfer that money back to your bank accounts or you can let that money just sit there
some brokerage accounts they'll pay you interest on the money sitting in your accounts or you can use that money to buy stocks you know whatever you want now I want you to know that many people get wealthy in the stock markets and there's not just one way to do it I'm going to tell you what most people do and you can try to see which style is most appealing to you buy and hold dividend investor Speculator Trader and let me explain these styles to you buy and hold some people just buy stocks and they just
hold on to them for a very long time we're talking about years even decades some people they'll even hold on to their stocks until they die and they'll put it in their will so this is a set it and forget it approach Traders some people in the stock market will try to buy and sell buy and sell frequently and make some money so these people are known know as Traders Traders are not interested in holding a stock for the long run and watching the company grow so I would recommend that beginners in the stock market
so if you're a beginner please refrain from Trading with a large amount of money I would recommend that you get some practice in first but it's true many professionals get rich by trading but that comes with experience speculators some people buy smaller riskier stocks that have a lot of potential and it could Skyrocket in price so these are speculators I'm not saying that in a good way or a bad way people speculated on Tesla early on and made a lot of money so you could say the same thing for Amazon or Walmart and so many
other stocks but there's other people that speculated on stocks and lost a lot of money so if you're going to speculate don't invest too heavily in one stock and do not fall in love with a stock your emotions can Cloud your judgments dividend investors some people buy stocks primarily for the dividends many investors take their dividends and reinvest them to get more dividends and your wealth accumulates over time so this is a great way to build your passive income so you can actually set your accounts to reinvest your dividends automatically it's called a drip dividend
reinvestment program I am personally a big fan of dividend investing because you literally get paid for doing nothing so if you're dividend investing your money is making you money so you should know from the get-go which style is most appealing to you and it could be more than one it could be a combination but there's no one right answer there's no one right method so whichever path you take you should understand the pros and cons of that method or that style now let me tell you what stocks I think are best for beginners there will
be so many stocks to choose from small companies big companies companies in different sectors energy technology real estate retail banking Pharmaceuticals Etc there will be companies that Focus their sales in the US there will be multinational companies there just so many options I would suggest that as a stock market beginner you invest in bigger and more stable companies the reason why I'm saying this is because of risk and reward if you invest in a smaller no-name company there's a higher probability that you can lose a lot of money as a beginner you should get a
feel for the stock market take it easy and just learn once you get more experience and knowledge then you can slowly move out of your comfort zone into stocks that offer more risk and reward if you don't want to take this advice and you want if you want to jump straight into risky stocks then I beg you please do so with a smaller amount of money please take my advice the stock market is not a get-rich quick scheme in the stock market you want to be an investor you do not want to be a gambler
and I want to see you make money as beginner it is better for you to make a little bit of money than to lose money so I would recommend sticking with safer stocks to start and learning little by little slow and steady wins the race and it's a marathon and just so you know if you want to be very safe and diversified then you can always buy index funds an index fund is a collection of stocks it's like a big basket of stocks where you get diversification so it's a way for you to buy a
little of almost everything which decreases your risk and I want to say this because this is so important when you're looking for stocks to buy always do your own research I would recommend that you take the approach as if you're buying a real business investigate the business you know what do they do how do they make money who are their competitors how do they compare to their competitors why do you believe this company is a bright future will there be any disruptive circumstances in their industry does their stock price seem overvalued undervalued fairly valued so
please do your due diligence so listen I hope this has been helpful if you want to see what I'm buying and you want exclusive educational content on the stock market then I encourage you to please check out our patreon website I'm going to leave a link down below thank you for all the support I appreciate it so much and wish you a very nice day
