Stocks are slowly coming to the forefront as something beginner investors should get involved with. But how to start on this journey of wealth creation when the market is just filled with indecipherable jargon and confusing strategies? There are a number of ways to get started on this journey and it’s far easier than it seems. Follow tips in this guide for the best ways a beginner investor can buy stocks.
Why Using a Brokerage Can Work in a Beginner Investor’s Favor
The hardest part about using a brokerage for investments is doing due diligence to ensure they’re above board. Once this is done, it’s smooth sailing as they take new investors through the journey of investing. The guidance they provide to new investors is invaluable, especially when the advisor has years of experience in the field. They will recommend the type of account to open, as well as the recommended duration based on the needs of the investor. Once investors are familiar with the terms and workings of an investment, they can move on to more challenging means of investing.
Online and Mobile Transactions for Simple Investing
Apart from some banks now offering their customers the opportunity to dabble in the stock market, there are a number of online apps that also provide this service. Some of the apps provide free services such as Robin Hood and Loyal 3. These apps allow users to purely invest without worrying about service fees or commissions. Other apps that offer a low-cost solution include Acorns and Stash. These paid-for apps take a small percentage or fee to keep the app running. There are also online sites that allow investors the opportunity to invest in the stock market directly, such as E-Trade or Ameritrade.
Consider Binary Trading for a Low-Cost Investing Option
Binary trading is an investment platform that tends to be an ideal solution for those who are testing the investment waters for the first time. The basic binary trading model is far simpler to understand than traditional investment routes, which makes it a popular choice among new investors. Many platforms also provide cost-effective investing, which makes it a suitable solution for those who don’t want to pay excessive fees. Look for a binary trading website that offers a training platform, as this allows users to get a feel for the trading style without using their own money.
The rule of thumb for a successful investment strategy is to only invest funds that are not to be used in an emergency. Investors are recommended to speak with an advisor at least once during each of the different phases of their lives, to ensure their investment strategy is in line with their personal risk acceptance level. This means that if their risk tolerance rating places them in a category where they will only accept low risk, their investments should reflect this. Time is a final yet equally important factor to consider as investors are recommended to invest for at least five years in order to ride out market fluctuations and to recoup the fees paid.
Save More Money in 2018
Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.