Is Now A Good Time To Buy Stocks?

To be fully honest with you the best time to invest was in the past. But the second past time to invest is now. 

We have been through some heavy and hard times since January 2020. The whole pandemic made the market even more complex and difficult. The whole pandemic have been through some heavy and fast roller coster ride since pandemic started. 

The more correct answer to this is that no one knows exactly the right time to buy stocks. Because the stock market is always going down and up every hour. 

However investing is a long-term game. And if you are investing for a period longer than 5 years then the time to buy stocks may be as soon as you have the money available to buy these stocks you want. 

If the market falls down not so long after you have started your journey with investing then nothing serious will happen because if you have taken the time before investing to research the companies or funds you are investing in and you have chosen companies like Tesla, BMW or Amazon who will be around for years to come then the theirs stock will soon or later go up again.

And since you are here for the longer term you will have plenty of time to make up those losses. And the best way to recover from market drop is to invest more money when the market is low as in the market drop.

Buy stocks during a market crash means that you will get much more shares for less money or for the same amount as you paid for less shares before market drop.

READ ALSO

How To Buy Stocks ?

How Do Mutual Funds Work?

How Should You Decide Where To Invest Money?

You Can Find My Investing Portfolio Here

How To Buy Stocks ?

Every newbie in the investing field thinks that buying stock is complicated. But the truth is that buying stocks isn’t as complicated as it seems for anyone is starting their journey with investing. But we warned that you will have to do some research work and some learning work before you start investing. 

There are some easy steps you can follow which will make the whole process easier and quicker for you if you just follow them. Couple of these steps I’ll tell you wont take longer than 15 minutes or so. 

All steps and everything you have to do may seem confusing at first but when you use a little time you will see that buying stocks is really pretty straightforward.

Step 1) Choose an online stockbroker and open an account there.

Online stockbroker isn’t the only way to buy stocks through but it is for sure the easiest way.

There a lots of good online stockbroker firms but there are even more very bad once. So it is important to do the research and find one that will suit you best. I personally would recommend Robinhood and eToro, but of course there are also many others good once. 

There are some online brokers which will provide you with tutorials on how to use their tools and even basic seminars on how to pick stocks. So if you are interested in this maybe look for it when you research online stockbrokers 

After you have chosen one, you gotta create and open your account and set money onto that account. By using that account you have created or you are about to create you can buy stocks through that website in a matter of minutes or even faster than that.

Of course you don’t need to open an online stockbroker, you can also use full-service stockbroker or buy stocks directly from the company. As you may see opening an online brokerage is easier because you can open an account in 10 – 15 minutes and trade whenever and wherever you want.

All it takes to open an online brokerage account is to : complete the account application, provide proof of identification and then choose whether you want to fund the account by mailing a check or transferring funds electronically. 

Step 2) Research the stocks you want to buy

After you have set up your brokerage account and put funds onto it, then the time comes to jump into stock market and start to look for good companies to buy stocks from.

Probably the best place for you to start would be researching companies you already know from your experiences as someone who have bought their services or products at some point in your life.

If you go straight to Yahoo Finances or any other website which shows the bare market you will probably get very overwhelmed if you are a newbie. 

Keep investing simple whenever you can. So look for companies of which you want to become a part owner. Don’t buy Tesla stocks if you don’t like electrical cars or don’t buy Apple stock if you are a Samsung fan etc. This leads us to the famous Warren Buffett statement which is “Buy into a company because you want to own it, not because you want the stock to go up.”

The moment you identified these companies then do a little research. The best place to start your little so called investigation is with the company’s annual report. This report will give you a general narrative of the future of the business and whats happenings with it behind the scenes. It will also provide you with the context for the numbers in the report.

When you have done that it wont harm if you dig a little bit deeper and use the analytical tools which the broker’s website gives you access to. Tools you can use are conference call transcripts, SEC filings and  quarterly earnings updates. Looking at recent stock market news will also help with your investigation.

Step 3) Decide how many shares to buy

If it is your first time investing then you should know that there is no pressure on buying stocks and you should also know that being hyped stocks isn’t the best idea because the hype will go down very soon and you will most likely lose cash.

Start small with just few shares and as you grow as an investor by learning more and more about it you can make your portfolio bigger and bigger. As you learn, you can add more and more positions over time so don’t feel the pressure of being a lots of shares the second you open your brokerage account. 

By buying just few shares at the beginning you will get a feel for whats it’s like to own individual stock and whether you want to go all in into it or just invest couple of bucks here and there.

Step 4) Optimise your stock portfolio

The last step here is optimising your portfolio. Investing is a lifelong journey if you truly want to succeed. There will be times where things will turn difficult and in these moments it’s important to remember that every single investor goes through rough patches no matter if that investor is Warren Buffet or you.

Always keep in mind that investing is long-term and concentrate on the things that you can control. 

After you have bought some more stocks here and there of various companies, take the time to go deeper into the investment world. Maybe look into funds, bonds, industries you don’t know a lots about, retirement accounts etc.

READ ALSO

Are Stocks A Good Investment For Beginners?

How to Invest in Mutual Funds ?

How Should You Decide Where To Invest Money?

You Can Find My Investing Portfolio Here

Is Stock Trading For Beginners?

Stocks are brilliant for many beginner investors and all that. However the “trading” part may not be so good or brilliant as stocks for beginner investors. Of course you will find many other websites on the internet with the statements opposite than the one you read here. But let me quickly explain why I say so before you close this page. 

The reason why you are finding the statement which you read above is because this website highly recommend a buy-and-hold strategy of good stocks belonging to even better companies behind them. Examples of good stocks with even better companies behind them are Tesla Motors, Berkshire Hathaway, Apple and Amazon.

Of course investing in stocks requires a lots of research to it which maybe some of you reading might find boring but if you want to do the best investments in stocks as possible always to your research and don’t just only make random guesses on what will happen in the stock market in the long or near future. 

If you are not willing to spend some time researching, then maybe focus on bonds and fonds because they for sure saves you time and are way more stable than individual stocks. 

Investors who focus mainly on stock trading spends a lots of time researching many companies before they invest. But also investors who focus mainly on stock trading try always to time  the market for the opportunity of buying low and selling high. 

Just know that the whole goal of investing is pretty much to buy low and sell high. But the history of stock markets and investing tells us that you are more likely to do that if you hold on to a diversified investment over the long term and not by actively trading stocks. 

The best way to diversify your portfolio and investments are by either buying stocks in many different industries or by buying mutual funds. And the choose between these two are up to you, and how much risk you are willing to take.

The answer to the question which is given in the title is no. Because when you are beginning your journey with investing then you probably have not so much knowledge and experience as someone who have been investing for years or as someone who works at Wall Street. And if you don’t want to lose all your money which you invest then get some knowledge and experience by investing in funds or bunds or long term stock investing before you do some stock trading.

READ ALSO

Things To Know Before Starting Investing

How Should You Decide Where To Invest Money?

How to Make Money in Stocks?

You Can Find My Investing Portfolio Here

What Are The Best Stock Market Investments?

If you are a beginner the stock market probably the most overwhelming and hard topics to understand in the investing field. The stock market can’t never be 100% understood, but it can be followed and you can play along with the stock market if you get more and more intelligent investor.

The completely honest answer to this question is that you are the one who should answer the question as you get more experience and knowledge with investing. The reason behind this is the best stock market investments which would be for the expert might not be it for you or Warren Buffet. 

The best stock market investments are sort of like opinions on various things like politics, religon etc. 

Every investor have somehow different opinion about what are the best stock market investments, and this is because there are no correct or wrong answer to this questions. Because you don’t know where the stock market will go in one hour, one week or one year. 

If all investors were agreed that one particular stock, fund or bond was better than all the rest, then it will lead to an issue which would be that quickly advance to a price which would offset all its previous advantages. And that specific stock, fund or bond would cost millions and the rest wouldn’t be worth nothing or close to nothing.

Some investors will say that the best stock market investments are low-cost mutual funds, like index funds and ETFs. Others are on the opposite line and they will say that individual stocks are the best stock market investments and the rest of investors are somewhere in between low-cost mutual funds and individual stocks.

The best advice I would give you is to first get some experience with investing and do research about the companies, bonds or funds you want to invest in and then try to define what’s the best stock market investment for you.

However it is important to keep in mind that you will never be able to beat the market. You can only fall victim of it if you try to beat it. The best you can do is to play along and gather as much experience and knowledge as you can to make better investing decision in the future. 

If you are a newbie in the investing field or looking to start to invest in the near future you will feel overwhelmed but be patience as long as you gather your knowledge about investing and the stock market itself. 

You can take a look at Are Stocks A Good Investment For Beginners? and at some other posts on this blog about investing. 

READ ALSO

Can You Invest If You Don’t Have Much Money?

How to Invest in Stocks (Quick guide)

How To Open A Brokerage Account And What Is It?

You Can Find My Investing Portfolio Here

Are Stocks A Good Investment For Beginners?

The ultimate questions which the newbies in investing field ask everyone who have a long investing career. 

The answer to the question is of course yes. The answer is yes as long as you are patient enough and if you are comfortable leaving your money invested for at least five years. 

Why Five years you might ask. The answer to this is that it is pretty relatively rare for the stock market to experience a downturn that lasts longer than that. And if you have invested in good companies, who does a good job at creating good money habits and products will make their stocks will eventually go up. Which for you it means that you will make a pretty okay return on them.

However if you don’t know anything about investing and what makes an investor to an intelligent investor I would recommend to invest in mutual funds than individual stocks. And when you gain more experience with investing in mutual funds and you have learned a few things about investing then feel free to also invest in individual stocks. 

The reason behind this statement is because with mutual funds you can buy a large selection of stocks within one transaction. This means that you will have somehow a good idea about what stocks are doing okay and what stocks are not doing okay.

It is important to mention that it is much easier to create a diversified portfolio with funds than it is with stocks. This is because when you buy funds you buy multiple individual stocks in one transaction. But create a diversified portfolio with stocks isn’t much harder to create it than with funds. 

Yes it takes much more time, effort and money to create diversified portfolio with stocks. The reason behind is because create diversified portfolio with stocks takes a lot of research, depending on your knowledge, it takes a more money to buy more stocks and knowledge on how to manage a portfolio. When you choose stock mutual funds, the people behind them are doing the work for you.

READ ALSO

Can You Invest If You Don’t Have Much Money?

How to Invest in Stocks (Quick guide)

How To Open A Brokerage Account And What Is It?

You Can Find My Investing Portfolio Here

How to Make Money in Stocks?

The biggest questions which a lots of beginners in the investing field have. What to know the secret ? Sure you do.

The secret number #1 is that investing in stocks is for the long-term no matter if you are earning money or losing it. But of course there are much more to it than just this. 

The whole key to making money from investing lies in the stock market itself. Another key is also your patience and how much you wait. 

There are dozens and dozens of investors who bail out way too soon, this makes the stock market for that specific stock go down. Which makes it harder for the stock owners of that specific stock to earn money from investing in that specific stock. Does it make sense?  Lets hope so.

The whole clue here is about too many investors doesn’t staying investing for long enough.  The clue with investing is to not follow the crowd and what people on TV or internet because they cant predict the future the same way as me and you cant. A good example to this is when investing experts couple of years ago was talking that investing in Tesla Motors will be a stupid idea. Well look at Tesla Motors and their stocks now, it doesn’t look a stupid idea to me at least. (I got you Tesla and Mr. Musk).

What I’m trying to say is that you should use your own gut feeling and brain to make a judgment and to invest for the long run not for the short run. When it comes to investing be patient and need to be able to handle roller coasters of stocks going up and down fast. The reason behind this is that good companies tend to increase their profits over time. And the reward for investors who are there for the longer run is of course greater earnings with a higher stock price.

The higher price when it comes to stocks and investing in general means a return for investors who own the stock. Which we want a lot, don’t we? 

The whole point with being patient when it comes to investing is about not knowing where stocks will go in a week, moth and a year. The whole idea is also that more time equals with more opportunity for your investments to go up. But with being patient you risk to also loos a lots of cash. 

However the idea with losing a lots of cash goes back to not investing more than you can afford to lose. Try to invest a small piece of your income. I would recommend to invest around 10-20 % of your monthly income but in the end you are the one who decided. You can invest less than 10 % if you want and you can invest more than 20% if you want. Its all up to you, but never forget to NOT invest more than you can afford to lose.

If you are one of these people who makes excuses like “I’ll wait until the stock market is safe to invest”, you have to know that the stock market will never be 100% safe to invest. There is always risk of losing money.

The best time to invest will not be tomorrow, next week, next month or next year. The best time to invest was yesterday and the next best time to invest is today.

However there is one good method to decrees the risk of losing money. And that good method is to invest in good companies like Asensus Surgical Inc, Tesla Motors, Amazon, Apple and Berkshire Hathaway. There are hundreds and hundreds of companies who are also on the level with these listed. 

If you are afraid to lose money, then you have to know that even the best investors like Warren Buffet loses their money at some point in time. But here is the thing with money, you can always earn it back. And losing money is a much better teacher to investing than earning money is. 

You Can Find My Investing Portfolio Here

How to Invest in Stocks (Quick guide)

So you want to get into investing and you don’t know how, right? Before you get on wrong paths let me tell you couple of things, just as a friendly blogger who is also investing one or two dimes, here and there.

Couple of months ago I was also wondering how to get started investing. On which side should I invest ? What should invest in? How much should I invest ? And similar questions, I’ve been through these questions 3-4 months ago. So I hope that I can help you a little bit.

The first step here is to decide how you want to invest. You have to decide if you want to invest in stocks, crypto value, funds, employer’s 401(k) etc. Begin with investing in one field, and then when you learn more about what you are doing and when you have more money than you can add a different field into your portfolio. 

At the beginning pick one field, try to learn if it is something for you. If it isn’t then change the field and if it is something for you then learn even more about that field and make sure that you take good decisions when you come to investing. And whenever you feel comfortable with going into different fields like investing in funds or crypto values then go for it

The second step is to choose which website you want to invest onto. There are a lots of good and not so good investing websites and apps which you can use. Of course do your own research on what websites or apps suits you best and which you want to stick with. I personally use eToro and I’ve been using it since day 1 of my investing career. The investing websites I will recommend to you are Robinhood and eToro.

Be aware of the issues that every investing website have cons to it, which different investing websites doesn’t have. Every investing website is somehow different from other investing websites so it is very important for you to do your own research of these investing platforms, because you need to choose a investing platform which suits you and not me or someone else you might know or not know.

The Third step is to learn what investing terms or shortcuts means. Beginning with learning about 401k, P/E ratio, EPS, beta, bear market, bull market, dividend, fiduciary and inflation.

There are many more investing terms or shortcuts which will be every useful or even required to know if you want to invest and not lose money as many people does. I know that it sounds super complained but try to focus on single step or word at a time and it will be much easier.

Learning about investing is really time consuming and it sort of never stops because there are always something new to learn about investing as time unfolds. 

The fourth step learn the difference between stocks and funds. At the beginning I actually struggled with knowing the difference between these two. 

Funds lets you buy small pieces of many different stocks in only one transaction. This means that you buy many different stocks from different companies when you put your cash in funds. Of course there are many different funds to choose between, and again to your research if you choose funds instead of single stocks

Individual stocks are very small single pieces of companies you decide to buy. 

The fifth step is to decide how often you want to invest. For you to make a profit of investing you have to invest on regular bases no matter if you chose if you want to invest weekly, monthly or yearly. 

Choose how often you want to invest and just stick with it. I would recommend to invest monthly simple because of your income and avoiding to spend too much or too less on investing. 

The sixth step is to decide how much you want to invest on the regular bases. Set a goal on how much you are willing to invest to the regular bases you have made in the fifth step and stick with it. Of course you can decrease or increase the amount you want to invest. Just decide an amount which you will be comfortable with investing.

You can invest 100 bucks, 500 buck or more. However I would recommend to invest around 10 % of your monthly income, but in the end it is up to you on how much you want to invest. 

The seventh step is to decide where you want to invest in. Which funds do you want to invest in? Which stocks you want to invest in ? 

Start with investing in one field and then increase it to different fields. Just to be sure if one filed crashes you will always have your investments in different fields. 

And if you know where you want to invest in, use google and do a little research on these funds or companies you decided to invest in. Look at what they are doing with their money, look at their financial statements and look at how their funds / stocks are doing. 

You can find my investing portfolio here