How to Invest in Stocks for Beginners 2021
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At the end of this video, you should know what type of investor you want to be and how to invest. 🎁ACORN Free $ 5 Link: https://acorns.com/invite/38EYSU
3 types of investment
Make sure you stick to the end, because most people think passive investing is the best investment, but it really isn’t the worst.
1. Active investment
– Is what it looks like
They actively invest and trade frequently, usually buy and sell within a year
And one day, traders buy and sell every minute (but about 80% of them lose money) – the stats don’t lie.
The hardest thing: the main reason is that it is impossible to predict the market in the short term and sometimes in the long term
Why? Since investments can be sold in seconds, so whenever people smell it, everyone sells it, but the more people think it will rise, everyone buys and the market becomes overrated.
A good example is January
– It’s more expensive: the government has codified this as a long-term and short-term investment: long-term after one year, it is taxed at a maximum of 20%, sometimes 15% and sometimes 0, but in the short term it is taxed as normal income.
It’s more dangerous: Because it has a short duration, things happen.
But: if you learn to invest from the inside out, how to analyze corporate financial data, understand management in a company, and the brand it has created. (Then you can earn a lot of money)
2. Passive investing
– It’s boring and mentally training
The idea is to invest in the long term
– I mean 10-40 years down the line
History shows that money will grow and that you invest in index funds, it will be more diversified
– Less expensive
Less money in the short term (because you will grow an average of 7% with index money for example)
If you learn how to analyze companies, study the management and the brand they created
Well, you can buy it in the long run (but the risk is that the company might go bankrupt)
So, to mediate risk (this is why I invest in index funds, attracting companies this way if one of them falls does not matter much)
That’s what 80% of those with a job offering 401K do
They hire a management company to manage their investments
For a small wallet 1% per year
However: 1% is a large sum of money, and math shows that roughly a third of your earnings
what should be done:
Get a self-driving 401k or Roth IRA (this way there is no administration fee)
Invest in some good ETFs (like vanguard s & p 500)
This way your money grows over time without fees.
Why I like:
0- The idea is: My money works for me
1- It grows over time
2- I am getting paid dividends
3- Ultimately, dividends will be proportional to normal income
* Professional advice *
Information is everything
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