hey guys so welcome to the channel so
this is going to be a full on
how to invest in stocks for beginners
course it's going to be a completely
free course
pretty long but if you guys want to
learn everything there is
about investing and you want a really
good grasp on how to analyze a stock
how to set up a brokerage account as
well as my tips and techniques for
making the most amount of money you can
while investing then this is the video
for you so let's go over some of the
things we're going to go over
in this really in-depth course so the
first thing we're going over is
what the stock market is we're also
going to talk about what exactly are
stocks
and how they actually make people money
right when you buy
and you sell them how you actually make
money doing that we'll also go into the
different types of stocks that you can
buy because it's not so simple there are
many different types of stocks you can
buy
and it's definitely something really
important that you should know before
you start investing
we'll also go over the easiest way to
open up a brokerage account so we'll be
going through a couple of my favorite
platforms to use and how you can
actually get some free stocks doing that
as well
we'll go into the different types of
accounts that you can use to buy
and invest in stocks a lot of people
think there's only one type of stock
account that you can use to buy stocks
but that's not true there are
so many different types so we'll go over
those we'll go into
timing the market if it's a good thing
to do if it's a bad thing to do
best ways to do stock research you guys
people have different ways of
analyzing stocks and determining what
stocks they want to buy
and there really isn't a completely
right way to do it but i will go into a
couple different types of
ways that you can do your own stock
research and that brings us to key terms
these are terms that you
definitely should know before investing
and they will help you actually evaluate
different companies and be able to
compare different companies
with one another we're going to the two
top ways to make money with stocks and
then we'll also go into dealing with all
the taxes that come
with investing right anytime you buy
something and sell it and realize a gain
or even when you realize a loss there
are tax
implications and you will want to know
these things before you start investing
we'll also go into value versus momentum
investing
and we'll also talk about warren
buffett's principles of investing warren
buffett is one of the most
prolific investors of our time and it's
really insightful to go over
what his principles are when looking for
companies to buy and sell we'll talk
about how long you should hold stocks
for it really depends on you
and what your whole situation is we'll
go over the importance of investing
early this is
super important you'll see as i show you
examples why it makes so much sense to
invest
as early as you can so if you guys
haven't started investing and you're
watching this video right now
that is why i really recommend watch
this video
all the way through get a good grasp on
investing and then
open up your brokerage account today of
course we'll also talk about how much
money you should invest this
really depends on your whole financial
situation but there are some rules that
you can follow that allow you to
invest a good chunk of your money but
not all of your money and that helps you
diversify your holdings and not have
all your eggs in one basket of course
we'll also talk about how you can do
your own due diligence before investing
in stocks this is very important anytime
you
listen to someone say buy the stock buy
that stock you have to do your own
research before actually buying it
because it's your money and you need to
ultimately make the final decision of
whether or not you want to buy a stock
so i know that's a lot but these are
some of the things we'll cover in this
video
and yeah i'm really excited to present
all this information it's completely
free
it doesn't cost any money i know there
are a lot of paid courses out there for
investing but to be honest like a lot of
the things you're going to be learning
you can do them on your own and you can
just learn them from this video right
here so just a little background about
myself
i am a real estate broker and i am also
a serial entrepreneur running
different businesses in all different
sorts of industries i have seven years
of investing experience
and i'm also an active investing
personal finance
youtuber so basically i've been making a
lot of content about
different companies my recommendations
for some of the top stocks you can buy
and overall i'm just a really big
believer in learning about the
fundamentals of investing
when you buy and hold stock for the long
term it's such a great way to build
wealth
i think it's something that everyone in
the whole world
should do and yeah i've seen a lot of
people get really rich
from investing so that's just why i
really want to emphasize
how important investing is to anyone so
let's first talk about why you should
invest in stock market
asap right there's a lot of potential to
make money in the stock market now since
the 1800s we've seen that the average
return on your investment
happens to be around seven percent per
year and you guys this is not guaranteed
this is just based on the past so it
doesn't guarantee that this is going to
happen in the future but
you know looking at these types of
returns that's pretty good that's a lot
better than having your money sit in a
bank account and not really getting any
interest now personally i do believe
that long-term investing is a lot
safer it's not 100 safe but it certainly
is
more safe than day trading than swing
trading and all that stuff and when
you're investing your money you're
basically letting your money
work for you right you can go off and
work your nine to five job or whatever
job you have
and make money doing that you're trading
your time for money
but when you invest you're actually just
letting the fact that you have money
make money for you it's a pretty cool
thing and that's why i would consider it
pretty passive income
another reason why you should invest as
soon as possible is because you want to
hedge
against inflation right each year
inflation tends to run about
between two to three percent and that
means that your money is losing value
over time
so if you want your money to make money
you're gonna need it to grow
faster than inflation so like i
mentioned before versus having your
money in a savings account which is
probably
not making much money for you at all
investing your money instead
if it gets that average return of seven
percent which we have seen historically
that is going to really grow your money
we'll talk about compound
interest and compound growth later on
but it's going to grow a lot faster than
if you just sit on your money in a bank
account stocks aren't the only way that
you can make money right there's also
real estate that you can invest in
and there are tons of other assets that
you can invest your money in and
actually generate money so if you guys
take a look at the screen on the slide
this is the s p 500 for the last about
40 years and you can see the growth on
that green line
it's been going up pretty consistently
we do have some big corrections every
once in a while but yeah you can see
that obviously it's grown a lot
and that's just pretty much the whole
point of investing you're putting your
money to work and it's growing for you
long term so now what are the reasons
for people to invest why do people
actually want to invest
well obviously you want to make more
money but the number one reason is
for retirement and we see that a lot of
people they don't save enough money for
retirement
and then when they retire they start to
run out of money and they run into a lot
of problems so the top reasons that
people say that they invest
is 64 say it's for retirement 56
states for living comfortably 53 for
feeling financially secure and then 44
for maximizing their wealth however
almost half of people say that they
don't
save enough money they don't invest
enough money and something that they
want to do
more of 39 expect to be forced to work
beyond retirement age and that's
something you really don't want to do
and crazily enough 12 of people don't
contribute to any retirement fund at all
which
when i hear that it's just i get scared
for them and i just want everyone to be
financially secure
and especially when they are older and
it's a little bit harder to work so
what is the stock market the stock
market is a marketplace where buyers and
sellers can trade shares
in companies so this is regulated by the
sec
and this is in the united states and the
sec stands for the securities and
exchange commission right their whole
job is to protect the public
promote fairness and maintain efficient
markets
the companies that are traded in the
stock market are all publicly traded
companies these are companies that
outside retail investors can go ahead
and buy shares of and when this happens
the owners of that company are diluting
their personal equity in exchange
for capital so instead of raising money
through venture capital funds and all
that stuff
they can actually go to retail investors
so that's like me and you
people who can buy shares on their
computer or on their phone
and they can raise money that way that's
the whole point of the stock market now
let me tell you guys about what an ipo
is this stands for initial public
offering
and basically what happens here is an
investment bank underwrites the ipo
and they buy up a ton of the shares so
they're taking the risk and then they're
selling those shares on the market for a
fee and that's basically based on the
percentage of
share price so when you have a private
company that is not yet publicly traded
and they want to actually be listed on
the stock exchanges
that's when they're going to do this ipo
and right now there are 13 different
exchanges in the u.s
some of the big ones are the new york
stock exchange nyse
and the nasdaq and that is heavily tech
focused so like i said
the stock market allows individual
investors like me and you to buy and
sell in a regulated environment
and it's basically like an auction let's
go over what the definition of a stock
is
so basically a stock is a piece of a
company
no it sounds a little bit weird but it's
basically your share of ownership
in a corporation a type of currency that
is backed
by that company you have units of stock
and those are called shares and
these corporations are going to issue
stock to raise funds to operate their
business
so let's say you have company a they
have 20
shares available for their company and
you own
four of those 20 shares that means that
you're going to have 20
ownership in this company and that means
that you're gonna have
20 of the profits now it doesn't
necessarily mean that you're going to
get paid out 20
of the profits some companies are more
dividend focused
companies and they will pay out a big
share of their profits
but for most companies they're going to
rather than paying those profits out to
their investors
they're going to reinvest it into the
business basically you're making money
because the company does well
and then the share price goes up and the
share price is really based on
the earnings the performance as well as
the sentiment in the market so now let's
talk about the different types of stock
that there are
available the first is common stock this
is the most
common type of stock there is and
basically you're having ownership
in a company and a right to vote it also
allows you access to dividends being
paid out dividends and these are
variable these are not guaranteed
some years you might get a dividend if
the company is performing well
some years if the market is crashing or
if that company is just not doing well
they might suspend that dividend the
common stock is what most of you guys
are going to be buying
in the stock market i only own common
stock and i don't have any preferred
stock
which is what we're going to talk about
next so for preferred stock these types
of shares don't give you
any voting rights they give you a more
stable dividend
and you actually have a bit of priority
so if there is
a bankruptcy you're going to get paid at
first in that case
and it's harder to lose or gain value so
these types of shares are not
as volatile as common stock so like i
said common stock that is what you and i
will be trading
and there are 600 000 or more publicly
traded companies
in the world right now we can also
categorize stocks based on how big the
company
is so you have small cap companies you
have mid cap companies and you have
large
cap companies for small cap companies
i'd say that the market value is
normally
under 2 billion dollars for mid cap
companies these are those medium-sized
companies the market cap will generally
be between two to ten billion dollars
and then for large cap companies that is
when the market cap is going to be 10
billion
or more you can also categorize stocks
based on the sector that they're in so
you have
tech stocks you have energy stocks you
have auto stocks you have medical stocks
all that stuff right you can also
categorize them by location so
where in the world that company is based
from and also you can categorize
uh different stocks as either growth
companies or value companies
and you don't have to just buy shares of
individual companies
you can actually purchase shares of etfs
and that's basically going to be
tracking these indexes
where you're basically buying a small
portion of a bunch of different
companies
and very similar thing with mutual funds
it's just like a more diversified
holding where you buy one share
of something and then that is basically
like investing in a ton of different
companies so really when people are
saying to diversify
in your stocks that means you're
diversifying across different sectors
from different locations and also buying
growth
as well as value stocks now let's talk
about risk tolerance and for investing
there's always going to be a small level
of
risk involved so you have your most safe
way of i guess holding your money and
that's in cash
that's not going to grow that's going to
actually lose value with inflation then
you have bonds
bonds are probably the safest way that
you can actually sort of invest your
money and get a small return
then you have index funds so like i said
these are tracking indexes
and you're investing in a whole bunch of
different companies and that's why
the risk is a bit less than buying
individual stocks which is our next one
this is a bit riskier because if a
company goes out of business then you
can lose all your money i say that real
estate is a bit more risky than stocks
generally it really depends on how you
trade stocks but for long term investing
in stocks that is generally going to be
quite a bit safer than the real estate
uh there are a lot of things that can go
wrong in real estate um and yeah that's
why i'd say real estate is a bit
more risky than stocks in general and
then even riskier than real estate i'd
say
is trading in cryptocurrencies um we've
seen cryptocurrencies really boom in the
last
year but it is still very risky it's
still very volatile
and yeah there are different
subcategories of each of these that are
more or less risky than others but i'd
say this is the general
risk profile of each of these types of
investments so just for fun i kind of
want to take you guys
through one of my favorite etfs this is
the vanguard s p 500 etf called vo
i own a lot of this etf and when you're
buying this stock
you're basically buying into the s p 500
you're investing into the
top 500 companies in the us so for most
people that
invest in stocks i'd say that if you
want to be safe if you want to just do
long-term investing
then vo is a really great choice because
you're investing
like i said in those 500 or so companies
and it's basically like investing in the
us economy
as a whole with the s p 500 these
companies are
historically seen to grow more than
you know like a total stock market index
because instead of investing in let's
say over
3 000 different companies this index is
only
on the top 500 companies but yeah i just
want to show you guys one of these
companies that i'm heavily invested in
and definitely one to consider if you
are investing as well
so let's talk about the different types
of brokerage accounts right like i said
there's not only one type of account
that you can invest your money in
there's quite a few
we'll start with the taxable account
this is the most standard account it's
the one that most people are going to be
starting off with and with this account
you're going to be paying taxes on any
of the gains you make with your stocks
so let's say you buy stock for 10 you
sell it for two dollars
you're gonna have a two dollar taxable
gain and you will have to pay taxes on
that with a standard taxable account
you can purchase stocks you can purchase
mutual funds etfs
pretty much anything and within the
standard account you can have a cash
account
and also a margin account the cash
account is basically letting you buy
investments
with money that you deposit into the
account so you can take
five thousand dollars put it into that
cash account and then use that cash to
purchase different stocks with the
margin account
this lets you actually borrow money from
your broker to buy investments
this is a lot riskier it's something
that is more advanced so i'm not going
to be talking about too much in this
video but just know that you do have
that option
when trading with a standard taxable
account and there are no limits to how
much money you can actually put
into a standard taxable account so yeah
a lot of people are going to be trading
with this type of account
you also have retirement accounts and
these are something that
a lot of people do but a lot of people
also don't do and it really
boggles my mind because these are tax
advantaged so you have the roth ira
you have the traditional ira you have
the sep the solo 401 k
the 401 k and a lot more with these
types of accounts you're actually only
paying tax
one time so you're paying basically half
the amount of taxes
as a standard taxable account i know
it's a little bit confusing but the
money you put into your standard taxable
account
it's money that you're paying that you
have paid taxes on already
and then you have to pay taxes again on
any of that profit with a retirement
account
you're only paying taxes once so for
example with a 401k this is a retirement
account that a lot of people have
the money that they put into that
account they aren't paying taxes on it
they're actually
reducing their taxable income for that
year and hence not paying taxes however
with that traditional 401k
when you do take out the money later on
you will be taxed
on any profits on the reverse side you
have things like the roth ira
this is money that you put in post tax
so you're not actually reducing your
taxable income
but when you go to take out the profits
later on you're not going to be paying
any taxes
there are some contribution limits to
these types of accounts so you can't put
unlimited funds into them and there are
definitely some withdrawal rules which
make these a little bit more complicated
but for most people they're going to
have both a standard taxable account
as well as a type of retirement account
and we won't go to too much of these in
detail but you also have your health
savings account you have your 529
savings plan
you have your custodial brokerage
account if you're under the age of 18
but still want to invest
and you have robo advisors and we'll
talk more about those later on but
that's also another great way to invest
your money
so let's get into how you can actually
start opening up your first standard
brokerage account
and this is going to allow you to buy
and sell stocks
now there are tons of different
brokerage
platforms that you can use out there for
example there's robinhood there's weeble
there's td ameritrade
fidelity charles schwab and many more
now i will say that for beginners i will
typically recommend using an
app-based brokerage because these are
extremely easy to use they have
great interfaces and it allows you to
you know just bust out your phone and
trade whenever you want so really gets
over that hump of you know having
training being
somewhat hard and complicated and makes
it a lot easier which will increase your
chances of
investing more money and hence making
more money now with robinhood and weeble
you can actually get some free stocks if
you open up an account
so i will put a link to those in the
description below and if you do use
those links
you will be helping support the channel
so thank you so much in advance so when
you are opening up a standard brokerage
account through let's say
robinhood or rebel there is no minimum
account balance so you can literally
just
open up your account put in one dollar
and start trading with that they're
super easy to open but
i will say that you have to be 18 or
older to open up an account with these
now the alternative to opening up one of
those standard brokerage accounts
through robinhood or weibull or whatever
is to open up a roboadvisor account
this basically allows you to passively
invest without having to buy or sell
individual stocks so one great option
for this you guys is wealthfront they're
a fantastic company and really one of
the most popular robo advisors out there
so yeah for wealthfront it's a great
option for beginners since you know you
have the phds the really
smart people at wealthfront doing all
the work for you
you can actually get five thousand
dollars managed for free when you open
up an account using my link in the
description below
there is a 500 account minimum so you
will have to invest
at least five hundred dollars and super
easy to set up takes
under five minutes to do so and like the
other accounts you do need to be 18 or
older so now going back to the standard
brokerage account
um if you guys do want to start opening
up an account today
i'll just show you guys sort of what the
application process is like
first you want to go to the links in the
description below and then
click on them and set up an account and
get your free stocks basically what
they're going to be asking you is to
submit an application and
this is only going to take a few minutes
so they'll be asking for a lot of
personal information so things like your
social security number your address
your name your date of birth and some
other things they'll have you set up a
username and password so you'll want to
make sure that that is
super secure you might want to turn on
two-factor authentication or something
like that and then they'll be verifying
your identity
using the information that you give them
after that you'll wait for your
application to be approved
and then once that is approved it should
be pretty quick um you can actually
start to fund your account
put money into it and then you can start
trading right away so i'm actually going
to take you guys through
robin hood and just show you the whole
platform so you get a good feel of what
this platform is like
so i've opened up robinhood right here
this is my
main dashboard it's going to show you
how much money you have invested
so right now i have about 69 000 in this
account
it's going to show you sort of like uh
what the value of your account has been
throughout the day and you can kind of
scroll through like that so it's pretty
cool
you can also change this so it's showing
you the last week last month
last three months and so on right it's
also going to have your buying power
right here so this is the cash that
is in your account but is not yet
actively invested into different stocks
right so right now i have about five
thousand dollars that i can use to
actually
purchase stocks down here it's going to
be all your stocks that you have
your whole portfolio in this account so
you can see i have microsoft netflix
disney tesla
a bunch more and if you want to actually
click on one of them i can click on
microsoft right here
i can show you guys the one week value
the one month
value last three months it's going to
show you your position
your average cost so that means that my
average cost for microsoft was
203 dollars and 84 cents on the market
value
the portfolio diversity and then your
total return
now i can go out of this and i want to
actually show you guys
this main screen right here the browse
screen so this is pretty cool in robin
hood because you can actually look
at a bunch of these popular lists of
stocks
so let's say i want to look at a hundred
most popular right it's going to show me
a hundred of the most popular stocks on
robinhood that people are buying
through this app and yeah just a cool
way to
see them you can sort by symbol by price
and by the percent
change i could also maybe look at crypto
so
if you didn't know you can buy crypto
currencies on here as well
this is the list that they have and yeah
just a bunch of other lists here
and they also have news articles so if
you want to stay up to date
with sort of the whole news the whole
market you can just come here
and look at all these articles from a
bunch of different publishers
and you can see the top movers for the
day so you can see this
company was up 60 percent crazy
this company's down 46 also completely
crazy
and yeah just a great place to sort of
get your news on what's happening
in the economy and in the stock market
so let's say you want to buy stock right
let's say i want to
buy a share of let's say microsoft right
this is always a great company to buy so
i'm going to come to the microsoft
screen right here
i'm going to click trade and i'm going
to click
buy right here you can see that i could
also click sell if i want to sell some
of my shares
that shows me i have about five thousand
dollars available and it's going to ask
me the number of shares i want to buy
it's going to tell me the current market
price and it's going to tell me the
estimated cost now if you guys go up
here
you can actually see that you can make
market orders
um you can actually do a bunch of
different other types of
orders such as the limit order trailing
stop order all the stuff
these are a little bit more complicated
so right now i'm just going to show you
guys what it looks like for
a market order let's say i want to buy
one share like that
i'm going to click review and then i'm
just going to swipe up to buy that
now i'm not actually going to buy that
right now so i'm going to go
back but let me show you guys how to do
a limit order and this is a really great
way to
set a maximum price you want to buy
microsoft for so let's say i don't want
to
pay more than let's say 230 dollars
right
so i'm gonna set that 230 dollars i'm
gonna click continue
and i'm gonna select um what the trading
hours are so we'll just use market hours
continue
i'm gonna say that this order is good
for today only until 1 pm
continue and then basically what's going
to happen
is it's only going to purchase microsoft
if the price hits 230 or lower if it
doesn't then my order
is not going to execute and i won't buy
the shares so this is a bit slower to
buy um we'll talk more about this later
on but that's pretty much
how you set a limit order in robinhood
so that gives you a glimpse of what
robinhood is like i'm also going to take
you guys through weeble this is another
great
stock trading app so this is my weibull
account
i can go here and this is basically my
main dashboard it's going to have
my account value here at the top it's
going to
and i'm going to be able to change to
see the last month last three months
and so on right so my current market
value is about 58
000 i have a cash balance of 666 dollars
so that means that i have
666 dollars i can use to buy stocks
right now
and i can come down here and these are
some of my positions in this account so
this is where i have some of my more
risky stock picks so let's say i want to
click on
rocket companies right cool so
this is rocket companies it shows me my
profit and loss
for this company so right now i've made
about 280
from from these shares um i have a
market value of 4
300 so i have that much of rocket
stock and also shows me my past orders
so
i bought 190 shares at 21.50 a share
on january 29 2021. now if i want to buy
more of this i can
go down here and click buy so right now
it's set as standard as a limit order so
i can set what i want my limit price to
be
using this i can set the quantity using
this
and time and force extended hours all
that stuff
if i want to do a market order a little
bit easier i can just go that
here you'll see i don't need to set a
limit price or anything like that
and i'll just select how many shares i
want to buy and i can click the buy
button
same thing if i want to sell i can do a
market sell or i can do a limit sell as
well
weeble also has a watch list where you
can put different companies that you're
actually watching
and they also have a few cool places
where you can see some of the top
gainers some of the top losers for today
some of the most active stocks um best
performing industries
they have crypto as well so you can
trade cryptocurrencies on here
you can also go to explore and it's
basically going to have
a bunch of these cool things here that
you can check out i don't look at this
too much
but yeah the community tab is also very
cool they have news here
they always have competitions with paper
trading and stuff like that
they also have news so very similar to
robin hood you can
check out a bunch of uh news about the
stock market and the economy here
and yeah it's a great platform so yeah
if you guys are interested in either
robinhood or
weeble i'll put those links down below
so outside of using robinhood and weeble
let's talk about robo advisors because
this is a really great way for people to
invest
that a lot of people don't talk about i
know i just already mentioned it earlier
but i want to give you guys some more
details on what robo advisors actually
are and how they can help you make
money so basically rob advisors are
passive investing platforms that
help you invest your money for you so
it's very hands off you'll need to be
constantly checking your portfolio
buying and selling and doing all that so
it's very automated
and basically these robe advisors are
using algorithms to help you
invest for you they're really
inexpensive and they are algorithm-based
financial advisors that are perfect for
people who don't want to spend
their time following the market so
people that want to be extremely passive
investors and not active traders they'll
generally require
a lot less capital to start than let's
say using a human financial advisor
and the annual fees for web advisor are
much less so
they'll generally be between 0.25 to 0.5
percent
per year versus 1 for a human financial
advisor and wealthfront is my top pick
for road advisors it's the one that
most people use so if you guys are
looking for a road advisor i
highly recommend going with them i'll
have their link in the description below
but basically with wealthfront you're
investing in low-cost
etfs right this is a lot more
diversified it's a lot more safe
and they're basically going to help you
build a custom diversified portfolio
investments
that cater to your needs and with
wealthfront you can actually open up a
bunch of different accounts you can open
up your standard brokerage account
that's taxable
you can open up retirement accounts you
can open up
education accounts all that stuff right
so you have your roth
traditional rollover sap ira's trust 529
college savings plans
and cash accounts and right now i think
their cash account is
paying 0.35 apy which is a lot better
than most online banks so
that's also another option now for their
annual fee they charge 0.25 percent
uh and if you guys use my link below
you're gonna get your first five
thousand dollars managed for free and
yeah it's just a really great way to
invest and i'm actually gonna show you
guys a screen share of what
their accounts look like on your phone
so if you open up wealthfront
it's going to show you your main
dashboard it's going to show your net
worth
today and it's also going to show your
net worth at retirement so this is the
projected
net worth based on all your assets and
all that stuff so if you scroll down
there it's going to show your cash
accounts it's also going to show your
investment accounts
and if we click on the personal
investment account right there
it's going to show you how much money
you have invested with them
right now you can see in this account 78
000 it's going to show you your line of
credit
your tax loss harvesting your
diversified portfolio so u.s stocks
foreign stocks
all that stuff um so yeah if you click
on u.s stocks it's going to show your
target allocation
your market value and what things are in
it so vti
s chb so now let's talk about the
different types of trades you have
when investing in the stock market the
first one is the market order
the second one is the limit order and
the third is the stop order with the
market order sort of like i showed you
guys on robin hood and weeble this is
when you're buying or selling at the
best available price
in the current market so basically the
current price as of right now
it's the fastest way to buy or sell and
it's the most basic way to buy and sell
stocks
so essentially you're buying at the
current asking price or you're selling
at the bid
price now on the other hand with a limit
order this is when you're buying or
selling at a specified price
that you get to choose so let's say you
have a stock where the current market
price is
let's say 18 if you were to do a market
order if you were to do a market
buy then you'd be buying that stock at
18 right now
if you do want to do a limit order to
buy that stock you'd set a limit order
to let's say
15 this means that it's only going to
execute and purchase those shares at 15
so it'll need to drop to that price for
it to execute
the risk with this is that it might not
execute because the share price
might not drop from 18 to 15 you could
however set a limit order for let's
and say 17.90 there's a pretty good
chance that that is going to execute
because
it might just drop down 10 cents and
then it will execute that order now if
you set
a sell limit let's say for 20 that means
it's only going to sell that stock
uh not at 18 but at 20 so it has to rise
to 20 and the risk with this is that it
might not execute as well right like it
might not hit 20
it might actually keep dropping down and
you would have come out ahead just
selling it at that current market price
of 18
you also have your stop order this is a
bit more complicated but this is
basically going to help you buy or sell
when the price
moves past a specified price so now that
we've talked about the different types
of orders let's talk about how you can
research stocks
and there are definitely some very
important metrics to understand
first of course is your price this is
the cost to purchase one share
of that company but that price itself
needs some context because you're not
going to know how many shares there are
in total by just looking at the price
what you need to do is you need to know
how many shares there are in total
and what you'll do is you'll multiply
the price by the number of shares
in total to get the market cap the next
thing you can look at is the 52-week low
and high so this is the lowest price
that that company hit in the last 52
weeks and the highest
price that the company hit in the last
52 weeks so just gives you some context
as to where the share price is currently
you also have your trading volume so
this is the quantity of shares that are
traded
during a given period now when you have
high volume this means that a lot of
people are trading it right now and what
i recommend doing with this is you want
to pair it with
the trend of that price so if the price
is going up
and lots of people are trading then
there is some upward momentum
and you might be able to expect it to
keep going up for at least a little bit
if there is a lot of trading volume
and the prices going down then that
means that there is downward momentum
and that could mean that the price
continues trending downward another key
term is
beta and this is the stocks volatility
in relation to the overall market so
basically a beta of
under one means that the stock is less
volatile than the current market
and the beta of over one means that it's
more volatile and you have the p e ratio
which stands for price to earnings ratio
what this is
is it's the price per share divided by
the annual earnings per share and my
annual earnings per share i know it's a
little bit confusing but that
is the total earnings divided by the
total shares
outstanding so let's go to an example
about the p e ratio right
so let's say you have a company that hit
a hundred thousand dollars in earnings
last year and it's valid at one million
dollars and it sells for one million
dollars
this means that the p e ratio is 10
because you take your 1 million
divide by 100k and that gives you 10.
what this does is it allows you to
compare this company with
other companies based on the price and
how much money the business is earning
so let's say you have another company
that hits 200 000
in earnings and sells for 1.5 million
dollars
if you take 1.5 million divided by 200k
that gives you a p e ratio of 7.5
so for these two companies even though
one of them did more earnings you can
see that the p
e ratio for that one is smaller which
means that technically
based on the p ratio that 200k earning
company
is the better deal the higher this pe
ratio the more
future growth is really baked into the
price so we've been seeing a lot of
companies that have p
ratios you know above 50 even above 100
even close to a thousand
and this means that the valuation of
that company is just a lot
higher than the annual earnings of that
company i say right now any pe ratio
that's under 20 is considered pretty low
and it means that the company is
valued pretty much where its book value
is at another really important metric to
understand
is the peg ratio this is the price to
earnings to growth ratio
and to calculate this you're taking the
p ratio which we just talked about
and you're dividing it by the growth
rate of its earnings for a time period
this is going to help you value a stock
while factoring in
any expected earnings growth and it's a
more standardized way of comparing
companies with
different growth projections now with
the peg ratio the lower
the better so if you have a peg ratio of
under one this means that technically
this
company could be undervalued and if the
peg ratio is over one
that means it's technically overvalued
so an example of a peg ratio let's say
you have company one
the current price per share is ten
dollars and the earnings per share
this year is one dollar however the
earnings per share one year ago was
66 cents so with this if you do the
calculations for the p e ratio
it comes out at 10. now we need to
calculate the earnings growth rate and
what we do is
we take the earnings per share this year
so one dollar
and divided by the earnings per share
last year which was 66 cents
if you do that and subtract one that
gives you 0.52
aka 52 and then finally to calculate the
peg ratio we take
the p eu ratio which we calculated which
was 10 and you divide that by 52 and you
get
0.19 this is a very low peg ratio which
means that it could be undervalued
another important metric to understand
is the dividend yield so this is how
much a company pays out in dividends
each year compared to its stock price to
calculate this you're going to take the
annual dividends
per share and divide that by the share
price and this is going to be expressed
as a percentage
let's say for example you have a company
and the share price
is let's say ten dollars right if the
dividend yield for that company is
let's say five percent that means that
that company is going to be paying out
50 cents in dividends per year i'd say
that any dividend above
three or four percent means it's a
pretty high dividend stock any dividend
between let's say one and two percent
means it's a mild dividend stock
and then there are a lot of companies
out there that just do not pay dividends
another great metric to learn is the
price to book ratio and
what you do for this is you take the
stock price and you divide it by the
book value per share
this helps tell us the market valuation
of a company which
is usually higher versus its book value
and the book value is found from the net
assets of the company
so basically you're taking your assets
minus your debt and that gives you your
book value
if you have a price to book ratio of
under one that is considered good
and if you have a price to book ratio of
over one that technically means that it
could be overvalued
another very important metric is your
profit margin and this is your profit
per dollar of revenue
expressed as a percentage so let's say
you have a company
and they have a 20 profit margin right
this means that for each one dollar of
sales
that means they are getting a net income
of 20 cents another thing to know is
your return on equity this is the roe
and it's basically calculating your
return on net assets
it's pretty complicated to actually
understand what goes into calculating
this
but basically it measures the financial
performance of company what you're going
to do is you're going to take the net
income
and you're going to divide it by the
shareholders equity a return equity of
15
and up is considered good but it really
does depend on the sector
another very important metric that i
always look at is the current ratio
and this is basically the current assets
divided by the current liabilities the
current ratio is basically going to
measure the short term liquidity of a
company and what i like to do
when evaluating companies is i like to
see a current ratio that is above one
this means that they have more current
assets than they have current
liabilities and that means that the
company does have
enough cash to pay off any debts in the
short term however if the current ratio
is way too high
let's say above 5 or 10 this could mean
that
maybe they aren't using their assets
efficiently so there should be a good
balance but if
this number is under one this does mean
that they are in sort of a precarious
situation where they have
more liabilities than they have
short-term actual assets so now that
we've gone through all these different
types of metrics i want to actually take
you guys through a stock
and put these to use so i have pulled up
apple stock one of the most popular
stocks out there
with the highest market caps and i'm on
yahoo finance
and if you come here this is going to
show you the current stock price so what
it's trading at
if you want to buy apple right now it'd
be 123 and about 21 cents
it's always changing because the market
is still open right now
come down here and you can see the
52-week range so in the last 52 weeks
it's been as low as 53 dollars and 15
cents but as high as 145 dollars
and nine cents so that just gives you
some context as to the current price
right
you can see the volume right here uh and
the average volume
and then you have your market cap so
this is your current price
multiplied by all the outstanding shares
and that's 2.069 trillion dollars so
large cap company absolutely gigantic
you have your beta so 1.25 meaning it is
a little bit more
volatile than the market you have a p e
ratio of 33.43
so just based off that number it is a
little bit overvalued if you look at it
through a pe ratio standpoint
the earnings per share is 3.69 so that
means that for each share that you have
they are earning 3.69 cents per year the
dividend yield is
right here so it's expressed as a
percentage so 0.68
meaning this is a very small mile diving
stock and for each share that you have
you're going to get 82 cents as a
dividend as of right now
if you come here to the chart you can
see in the last year this is the price
movement
so obviously a lot of growth but a
little bit of a correction
right there in recent months and if you
come here to statistics this is where
you can see a bunch of the other
evaluation measures and metrics um
market cap right here
we talked about the peg ratio so this is
the five year expected peg ratio of
2.76 it is above one so technically it
is
overvalued um you have your price to
sales and price book
ratios right here price book ratio is
31.63 which is
pretty high so you know it is overvalued
then we come down here to the
profitability so you have your profit
margin as
at 21.74 which is pretty good
um you want to compare that to the
industry so this is in the tech industry
so
i'm not sure what the average is but you
can do that research if you want
you have your return on equity which we
talked about the roe
sitting at 82.09 so obviously very high
very good um you have your income
statement stuff if you want to look into
that
you have your balance sheet you can see
that they have total cash of 76.83
billion dollars
and the current ratio which we did talk
about is 1.16
so just above one so that is a good sign
but it's not too high meaning that they
have just about 16
higher uh current assets as they have
current liabilities
and then something i always like doing
is coming back to the summary page
and coming down here to the financials
to the analyst ratings
as well as the as price targets so you
can see that for apple
these are the financials for the last a
few years
here we can see the analyst
recommendations so
right now they're writing it as a two
based on all the different analysts that
they have in the system
meaning there's a buy according to the
these analysts and you also have
the price target so right now the
average and this price target is 152
uh and six cents which is higher than
the current price of 123.25 cents
analysts aren't always correct it's just
good to see what other people are
thinking
and yeah it's something i always look at
when analyzing stocks
so let's talk about timing the market
and the question
should you do it or should you not
basically i'm going to define timing the
market as
trying to predict the stock market aka
predicting any gains
predicting any crashes and using those
predictions to influence your buying or
selling pattern now i will say that
historically it has been better to
buy after a crash than to try and time a
market high so
based on past historical data it's been
seen that stocks
tend to recover and this is true for any
good company that survives a crash
or an economic downturn if there is a
large crash then that could be a good
time to buy
and i'll say this don't sell during any
of these small crashes
because that is called panic selling and
that means you are going to be losing a
lot of money that you don't have to lose
if you focus on the long term and hold
as long as you can
this puts you in the most strong
position for making money through
investing
it's just overall a lot safer and yeah
so my safe answer is
if you time the market it's going to be
bad rather you want to spend more time
in the market and just elaborate
honestly guys it's super hard to time
the market because you need to be right
two different times right you need to
guess the top of the market to sell
and you need to guess the bottom of the
market to actually reinvest your money
doing both of these is extremely hard
that's why i say
if the market crashes and it's a good
company that could be a good time to buy
that's a lot easier to predict than
trying to time both
the high points as well as the low
points and if you look at the past
historical data you
actually see that most gains are from
these rally days right there are a few
really high performing days each year
where the share prices go up a lot
so it's very easy to miss those days
dollar cost averaging
so this is basically a technique of
investing over time
it's basically where you're gradually
investing into a company over time
instead of
investing all your money at once so this
is a great tool for new investors
who want to limit their risk exposure if
a crash
does occur right you're not putting all
your money into the market
or into that company at one time rather
you're going to put it in slowly
that way if somehow the market does
crash then the price is going to be a
lot lower you can have a lot more buying
power
and it's going to mitigate any risk of
buying all at a higher price and seeing
the market crash historically since the
market
generally moves up it should technically
be better to buy all at once
but in volatile markets dollar cost
averaging can be a great strategy
right now there is a lot of volatility
so that's why i always recommend
dollar cost averaging as a good
technique now let's talk about
appreciation versus dividends and these
are two ways for you to make money
through investing but it really is like
comparing apples
to oranges so the first way you make
money through stocks is through
appreciation and this is what happens
when
you see a rise in the share price just
due to the company performance
and the market sentiment when a stock
appreciates let's say you buy at ten
dollars it appreciates to twelve dollars
that's when you see that two dollar gain
and if you sell it at that twelve
dollars
then you see that capital gain through
appreciation so appreciation is not
guaranteed you know it could go either
up or it can go down
but if it does go up that is when you do
make money through depreciation
you can also make money through
dividends so these are paid out
quarterly
usually and it's a more recurring income
this happens when companies are paying
out a portion of their profits
to their investors so they're basically
rewarding you by paying you out a little
dividend what you can do with this
dividend is you can actually
reinvest it so use that money that
dividend money to actually buy more
shares
or you can pull it out and just you know
use it for your your daily life expenses
now you might be wondering how come i
can't just
buy a stock right before the x dividend
date
right before that dividend is actually
paid out and then sell that stock right
after when i come out ahead
the problem of this is that the stock
price actually normally drops exactly
by the dividend amount right after so
it's basically a wash you don't really
come out ahead the great thing is that a
lot of stocks they'll appreciate in
value
and they will also pay out dividends
this is great because you can make money
in both ways
but i will say that for uh companies
that pay out dividends
usually their appreciation is a little
bit slower and that's because
instead of reinvesting all that money
back to the company they're paying out
some of those profits
to investors so usually their growth is
a little bit slower
now one pro about investing in stocks
with no dividend is
that you don't get taxed until you sell
appreciation is not taxed until you
actually sell that stock however on the
other hand with dividends
if you do get paid out a dividend no
matter if you reinvest that money
or you just take it out for your life
expenses this is considered a taxable
event
and you will need to pay taxes each year
for those dividends also if you have
companies that pay out super high
dividends
this usually means that there is more
risk because that dividend
could easily go away if the profits for
that company aren't good that year
and yeah i've seen that normally these
high dividend companies are usually in
the telecommunications
sectors so let's also talk about the tax
implications of investing
what actually happens when you sell a
stock so when you sell a stock or
any capital asset you will get taxed if
you
sell it for more than you actually paid
for right that constitutes a capital
gain so when you are determining whether
or not you want to sell a stock you
really should consider
the tax implications you will owe some
taxes if you made money on it there are
two types of capital gains that you need
to be aware of there's long-term capital
gains and there's short-term capital
gains
now with long-term capital gains this
occurs when you sell
a stock that you hold for one year or
longer so let's say i buy stock today
and then i wait over one year to sell it
that is going to be a long-term capital
gain and you're actually
probably going to be taxed lower on that
than if you hold it for under one year
the long-term capital gains rates are 0
15
and 20 and it depends on your income
level now with short-term capital gains
this occurs when you're selling
before one year and this is taxed as
ordinary income so for a lot of
high earning people out there where your
income taxes are super
high that means that holding your stock
for 364 days
versus holding your stock for let's say
366 days
could create huge implications in how
much you're paying in taxes
so yeah like i said in general holding
for over one year is going to result
in less taxes when you do sell and your
brokerage will send you a tax document
each year
with your capital gains or losses this
applies to taxable accounts you guys
when you're talking about retirement
accounts it's a bit different it's a lot
more complex
but the main point is know that there
are taxes when you do sell for a profit
let's go into a little bit more detail
about long-term capital gains i think
this is extremely important
and just really shows you why it's
important to hold for over one year so
in 2021 the capital gains tax rate
thresholds
are as follows it's zero percent if you
make up to forty thousand four hundred
dollars as a single filer it's fifteen
percent if you make between forty
thousand four hundred one dollars
to four hundred forty five thousand
eight hundred fifty dollars and if you
make over 455
850 then it's 20 i will say that there
is a possible 3.8
additional tax on top of this uh for net
investment income for really high
earners and that's going to include
earnings like taxable interest
dividends gains passive rents annuities
and royalties but if you're not single
and you're married or you're the head of
a household
you can check out the rates for the
other income levels
now for short term capital gains these
are the tax brackets
for single filers in 2021 it is a
progressive tax system so
let's say your taxable income is between
zero dollars and nine thousand nine
hundred fifty dollars
that means that your marginal tax rate
is going to be ten percent
this goes all the way up to thirty seven
percent after you make over
523 and 600 so you can see if you're a
high earner and your marginal tax rate
your tax bracket is very high then
selling stocks that you've held for
under a year
is going to massively increase the
amount of taxes you're paying
versus if you could just pay those long
term capital gains instead and this
actually does not include state taxes
so that's in addition to this so yeah
you can see that there's
huge savings now this section we're
going to be talking about retirement
accounts
and these are so important these allow
you to save so much money on taxes
and most importantly they allow you to
save money and be prepared for
retirement everyone in the right mind
should take advantage of
tax advantaged retirement accounts so
let's talk about the roth ira this is an
account that
pretty much everyone should start off
with especially if you're not making
that much money right now and you expect
to be making more money later on so yeah
i highly consider looking at the roth
ira
if you are eligible um basically with
this account you are paying taxes now
and you're avoiding taxes on any future
gains so when you are in retirement when
you're at least 59 and a half years old
this account allows you to pull out
gains without paying those taxes and if
you compare this to a normal taxable
account
you can see that you're paying half the
amount of taxes because you're not being
taxed
twice now for most people you're gonna
be able to contribute up to six thousand
dollars per year
there are other retirement accounts that
you can research yourself but i highly
highly recommend
looking at uh taking advantage of these
tax advantaged retirement accounts now
let's talk about tax loss harvesting
this is a strategy that you can use to
offset any capital gains that you make
so with tax loss harvesting the whole
definition is
you're basically selling shares at a
loss to offset
a capital gains tax liability and
usually this is done at the end of the
year
so let's say you made a bunch of money
selling your shares of a company
that did really well for the year right
you made a lot of money with that what
you could do is you can sell some stocks
that you actually lost money on
create a loss and then use that loss to
offset any gains
in that year then after selling for a
loss you can actually replace them with
a similar asset
but i will say that there is this wash
sale rule and it says that
you cannot repurchase a stock for 30
days if you claim the loss
for tax purposes so let's go through an
example of tax loss harvesting
let's say you've had stock a for 67 days
and you want to sell it your total gains
so far are
a hundred thousand dollars right you've
made a gain of 100 000
on the stock this results in a hundred
thousand dollars of
short-term capital gains because you
sold within 67 days
and not over one year so this would be
taxed at
37 if you are in the highest income
bracket
this means that you can have 37 thousand
dollars in taxes
not including any applicable state taxes
on the other hand you have had stock b
for 180 days and you are thinking about
selling it right you've actually
lost 50 000 on this stock which is not
good
right but you can actually use that
fifty thousand dollars of short-term
capital loss and offset that hundred
thousand dollars
of short-term capital gains so if you
take a hundred thousand subtract fifty
thousand
this leaves you with fifty thousand
dollars of net short-term capital gains
and that's going to come in at
eighteen thousand five hundred dollars
in taxes that definitely is a whole lot
better than paying thirty seven thousand
dollars
in taxes so that is a technique that you
can use to reduce your taxable income
now the same thing applies for long-term
capital gains
i will say that has to match so you can
only offset
long-term capital gains with long-term
capital losses and it really is a great
strategy where you can
realize tax savings when you want to
sell an asset for profit okay
value versus momentum investing let's
talk about warren buffett's principles
of investing right
first one is leaders are important he
really cares about
who the ceo is who the leadership board
is because they have a dramatic impact
on the performance of that company his
second principle is he wants to invest
with facts and not emotions stock
trading can be extremely emotional and
when you trade with emotions
a lot of the time you're going to lose
so that's why warren buffett likes to
look at the facts only and
really not look at any of the emotions
he also wants to invest for the long
term
and generally he's not going to sell
unless the business
changes fundamentally in a bad way so
like i said earlier
investing in the long term probably a
lot safer than investing for the short
term
another thing that warren buffett says
is that for most people for like 95
of people an index fund is best most
people are going to make more money just
investing in a traditional index fund
such as
vo like we talked about earlier versus
trying to pick out individual companies
trying to time the market
buying when it's low trying to sell when
it's high and all that stuff when you
buy an index fund and just
hold it for a long long time that is how
the majority of people are going to come
out ahead with investing
another thing that he really emphasizes
is try and buy shares of companies that
you are knowledgeable about
don't buy shares in companies that you
literally know nothing about you don't
know their business model you don't know
who's running the company and yeah that
comes down to the due diligence right
you need to do your own due diligence
before investing in any company
and you really need to know that company
before investing his last principle is
when you see a great opportunity
take it so when something comes up in
the market where
there might be a company that's
undervalued or investors are for some
reason just
dumping stock for no good apparent
reason then that could be a good time to
actually
hop on that opportunity and buy shares
and we've seen this a lot in warren
buffett's career he'll actually hop on
these opportunities as soon as he sees
them
now let's also talk about value versus
momentum investing right
you have on one hand value investors
these people care about fundamental
analysis
they care about all those metrics that
we talked about like pe ratio
price to book ratio all that stuff and
they are
specifically looking for companies that
they think are undervalued
compared to their intrinsic value that's
why value investors
they'll try and buy companies that are
undervalued hold long term
or until that company becomes overvalued
and then they might sell off
part of their portion of shares or solve
all their shares on the other hand you
have momentum
and growth investors so these are
traders that don't
really care so much about all the
fundamentals of the company
they don't care if a company could be
overvalued in a sense
rather they are looking at the future
potential of that company so
things like pe ratio pb ratio they don't
matter as much
these investments they tend to be
riskier and a little bit more volatile
because you know since they are
overvalued in a sense
there's much more room for them to go up
and down
and these types of investors are
generally going to prefer
investing in these emerging industries
so right now
it's going to be like eevee it's going
to be tech it's going to be all these
sectors that
while they are overvalued they have seen
a lot of high growth
in the last year you don't need to be
only one of these you guys you can be a
mix of them and for most people i'd
recommend
not being one or the other if you're too
much of a value investor then you might
be
losing out on a lot of possible growth
and if you're a really big momentum
slash growth investor
then you could be missing out on those
really undervalued companies that will
continue to grow for a long time and you
might actually buy some companies that
are overvalued right now and
lose money in the short term now let's
talk about the importance of investing
earlier i think this is extremely
important
and the number one phenomenon that you
need to be aware of is compound growth
compound interest
right so let's say you have an initial
investment of
six thousand dollars and then you decide
to contribute 500
per month for 40 years given an
estimated interest rate of about 7
which is what we've seen historically
you can see that the growth of that
money
shoots up so much compared to if you
just put that money in
a cash account or a savings account or
something like that so based on this
graph right here
the results are in in 40 years you will
have
1 million 287 657
and 42 cents compare that to let's say
if you put that money in just a cash
account you probably
have what about 246 000 and all that
vertical growth is happening in the
later years
and what we want to do is we want to
shift that vertical growth
as early as possible and that's what
investing early does
so let's take a look at the impact of
when you start investing i found this
from us news and i thought it was
extremely
uh extremely eye opening so let's say
you have someone jack invests 200
per month starting at age 25 so he
contributes a total of 96 thousand
dollars then you have jill who invests
200 per month starting at age 35 so 10
years after jack right
she contributes a total of 72 000 then
you have joey who invests 200
per month starting at age 45 so hold 20
years
after jack he contributes a total of 48
thousand dollars
if you look at the growth from when they
start investing to the age of 65
you can see how drastically different
their portfolio values are
jack only invested 96 000 right but now
his portfolio
is valued at over five hundred thousand
dollars whereas
joey on the other side of the spectrum
he invests
forty eight thousand dollars so half of
jack
but he only has a portfolio value of a
hundred
000 you can see just how different that
is and that just really shows you
how important it is to start investing
early no matter what age you are
if you haven't started investing that's
why i recommend doing that right now
because you want to shift that graph
as far left as possible and you want to
take advantage
of as much of that vertical growth as
possible so now how much money should
you guys
invest and these are just my opinions um
it really depends on your whole
situation
but i'd say that you want to invest the
money that you don't need to live
that's why raising your income you guys
is so important and that's why the rich
get richer right
they have their set base expenses for
their life
and then they have all this extra money
that they are going to invest
into the markets into real estate and to
other investments however you don't want
to invest in your money that you
actually need to live
because of course we need to live so if
you're young and you have some excess
cash
what i recommend doing is open up an
account after watching this video
and then just start investing to get the
ball rolling you don't need to put in
that much money
five dollars ten dollars a hundred
dollars a thousand dollars doesn't
really matter the whole point with this
is you want to just
get over that hump of investing and
start investing as early as you can
this is going to increase your chances
of putting more money in the future
months
and just building up that big portfolio
that you want to retire off of
however i will say that if you're young
there are probably some better things
that you can invest
in that are going to have a much higher
roi so these are things like your
self-improvement
building a business and spending money
on your education
these things can pay off way higher than
investing in stocks
but yeah it really depends on what your
goals are in life and
where you currently are at so whatever
you're doing i'd say set a monthly goal
of
how much money to invest based on your
income only you know what's best for you
so look through your finances think how
much extra money do i have each month
and then invest a significant portion of
that if it were me and i were starting
out
i would prioritize index funds these are
things that you can buy
just set on the side and not really
worry about i would much rather
invest my time and effort into building
up
my self-improvement building businesses
and generating more income
and of course something i've been
talking about for a long time is due
diligence anytime you're investing in a
stock you absolutely
need to do your own research right so
the securities act of 1933
made it so that brokerages have to
disclose specific information about
securities before they can be sold
to the public this is like the first
level of due diligence it's from the
brokerage it means that there are
probably not going to be any
phony companies out there on in the
stock market for you to buy and then the
second level of due diligence
comes from your own research as a retail
investor so this can be doing your
fundamental analysis
evaluating the core attributes of that
company and their assets performance
financials all that stuff
it can also be a technical analysis so
you're looking at patterns and trends
finding things that other people aren't
seeing i know i didn't really talk about
this
like diving into these charts and graphs
but that's also another way that you can
actually do your own due diligence and
yeah when you have those multiple levels
of due diligence
that's when you can make investing a lot
more safer it's not 100
safe as with any type of investing but
you want to be as safe as you can so my
golden rule is i like to try and invest
one hour minimum for any company that i
do want to
invest in if you want to buy individual
companies it's really important that you
know what that company does
you know the financials you know their
leadership you know their whole game
plan
and you're comfortable with that if you
want to invest in index funds or through
a robo advisor that's when you don't
need to do too much research and it's a
lot easier i'd say different stocks are
going to work for different people right
what works for you might not work for
someone else and it really comes down
to the risk to reward your timeline
as well as any opinions you have about
that company or that industry
if you guys are looking for some more
information about stocks you can check
out the intelligent investor by benjamin
graham
this is a great book that most investors
are going to start off with and you can
also check out the investing quick start
guide this is another
beginner's guide to investing that i
found really helpful they're really
going to dive into the fundamentals of
investing
and they're going to be more detailed
than this video because you're just
going to have
hundreds of pages of text so now what
are some actionable steps
you can take right now first thing you
guys go and open up a stock brokerage
account and get your free stocks
so use my links below if you want to
support the channel i really appreciate
that
and then what you want to do after that
is fund your account put some money into
it
doesn't matter how much it is you just
want to get the ball rolling you want to
do your due diligence before investing
in anything
and then you want to buy your first
stock you can buy an etf you can buy an
individual company or you can just use a
robe advisor like wealthfront and then
the education doesn't end there you want
to continually learn about the stock
market you want to stay up to date on
news and current events and that's all
going to help you out with your
investing
if you guys are interested in
potentially using a robe advisor you can
get your first five thousand dollars
managed for free when you use my link
below all you have to do is answer a few
questions to determine your risk score
so you have to do zero research and then
they're going to help you set up your
account
and choose what types of stocks to
invest in so yeah thank you guys so much
for watching this video i hope you guys
got some value out of it i know it's
super long so
if you stuck with me until the very end
then you are a trooper
and i really hope that you are ready
right now to start investing i talked
about how important it is
to invest early so guys do that right
now and
happy trading thank you so much for
watching if you guys like the video
make sure to hit that like button and
also subscribe to my channel to see more
videos just like this i make a ton of
content about personal finance
investing in entrepreneurship thank you
guys so much for your time and i'll see
you in the next video
[Music]
peace