–Hey Taylor – I’ve never invested in the stock market before but I really want to dive in. I’m hoping I can kind of learn as I go so I don’t have to put off the investing part, but I also don’t want to lose all my money right away. How should I approach this? – Brian
–Hey Brian – No time like the present! Learning as you go is a big part of investing—you just have to maintain the right outlook so your investment approach doesn’t turn into gambling. You can get started on stock investing tomorrow, but here are some things to keep in mind.
1. Take an educated approach. Even though you’re just starting out, building some foundational knowledge may help you make more informed decisions. You don’t need to become an expert immediately, but it could be beneficial to familiarize yourself with basic concepts and market trends. Websites like Investopedia are useful for understanding key terms, and reading a few articles on sites like the Wall Street Journal or CNN may provide some insights into market movements. While there isn’t a guaranteed strategy, learning as much as you can might help you develop a balanced investing approach.
2. Start slowly. One of the biggest risks is jumping in too fast and taking losses right away. Think of stock market investing as more of a marathon than a sprint—it’s about pacing yourself and taking each step as part of a longer journey. You could begin with a small portion of your funds and try to spread your investments across different areas, rather than putting everything into one company. Consider looking into companies you trust—those you’re already familiar with. Check out their track records and see if they align with your goals. Many platforms offer fractional shares, so you don’t need to buy a full share to start. Instead of chasing after low-priced stocks with flashy promises, which are rare, a lot of successful investors focus on solid companies with proven track records. Dividends and steady growth over time might add up to be worthwhile investments.
3. Stay the course. There will be months, or even years, where things don’t go as planned. The idea is to give your investments the time they need to grow, which usually happens gradually. While the market will have its ups and downs, many people choose to invest in companies they know and trust, hoping that these align with their long-term goals. By holding shares in brands you believe in, you position yourself to potentially benefit as those companies continue to grow over time
If you have $1,000 set aside for investing, you could get started by opening an account on a reputable platform like Robinhood or SoFi. From there, consider looking into companies whose products you use and trust. By staying disciplined and keeping yourself informed, you can begin to build your investment portfolio. Best of luck!
TAYLOR J KOVAR
CHIEF EXECUTIVE OFFICER
CERTIFIED FINANCIAL PLANNER™