What should you do as a beginner investor with your investments when you have $10,000 dollars laying around? I’m here to help you!
00:00 This video is not telling you which stock you should buy, but it’s about the choices you should make as an investor.
01:13 1. How much money can you miss?
If you know that you have $10,000 dollars on your bank account, that’s great!
But will you use the full $10,000 dollars? Or will you choose to use a part of it first, before spending it all?
02:56 2. Which investment style would you like to apply?
I always believe there are 3 styles to choose from.
The first one is: active investing.
Active investing is what I tend to compare to exchanging your time, for result, or money in this case.
So you’ll be inputting your time to make money, using money. And the outcome, will be possibly more money.
The second style is: passive investing.
One time you do the work up front, and then you invest your money into a certain stock.
And then, you just wait…
In the future, you reap the benefits from the work you’ve done in the past.
There is the third option, which is a combination of both: It’s partly active, as it requirements your attention once in a while, but once you’ve done the investing, it’s mainly passive, as you will not be focusing on it at all.
05:13 3. How do we manage risk?
It starts with setting a certain strategy of investing. And as a beginner investor, I would say, there are 2 distinctive strategies
The first one is: lump sum.
Lump sum is spending 1 amount, for example that $10,000 dollars that you have. You spend it by purchasing all the stocks that you can with that amount of money. And then you wait it out, in the hope it becomes more.
And the second strategy for beginners is: the Dollar cost averaging.
You set a frequency of investing, like once a week, or once a month, or once a quarter. You’re investing a fixed amount of money each time, and depending on the market, you will be able to buy more or less with that same amount. This way, you will not be timing the market, but you do have to believe in that company though.
08:13 4. Get started!
If you know your investment amount, you know your investment style, and you know your investment strategy.
Just look into what you want to buy.
Research the stock, if it could perform short and long term. If you believe you found a certain stock, good! Now invest your money into it, using the methods given.
And this is how you get started in the investment journey.
Make money, achieve your dreams, and enjoy the freedom
Happy investing!
