How do I start investing in STOCKS?
Investing in the stock market is an important skillset and can be challenging when you first start.
How do I begin to invest in the stock market?
Don’t start for the sake of investing in stocks. People invest a lot of the time learning how to start investing in the stock market because they fear missing out. It is important to remember to ignore the stock market volality and noice and only invest in stocks you believe in.
If you are starting out investing in stocks, click here to access this week's stock tips and research.
How much should I invest in stocks for the first time?
You don't need any capital when you start investing in shares. Investing in shares is about getting a watch list together of shares to invest in and getting comfortable with the risk that you are prepared to take. When you do start investing real money, invest very small amounts relative to your total capital. If nothing else, this gets you used to the communications you experience as a shareholder, or part owner of a company.
Everything big starts from something small, and that includes investing in stocks. To understand what your risk tolerance is, invest some money in stocks and work out when you are willing to cut your losses and how willing you are to hold on when you are making good returns on the stocks you invest in. At Under the Radar Report we always recommend that you follow our portfolio structure. Generally investing in seven to 10 ASX Small Cap stocks over time is the best way of getting diversification benefits as well as the potential for one or two of them to do an AfterpayTouch (APT).
How much time do I need to spend on investing in stocks?
You need to build up the amount of time according to how much you start investing in stocks as it relates to your total asset base. The more you start investing in stocks, the more serious you need to be. We’re talking about your future, after all.
In most cases, the most productive use of your time when you start investing is your job. Beyond that, you should be putting in at least two hours a week reading material that relate to your investments and stocks. You should always be looking for the edge in the stocks you invest in. That might occur when your at a Smiggles store if you are interested in Premier Investments (PMV), or looking to see how many a2 cans are in stock in the supermarket. It never stops, really when you are investing in stocks.
What should a beginner invest in?
Start investing in small companies as it gives you a competitive edge. When you start investing, you can buy a lot of stocks that most fund managers don’t bother with because they’re too small. You can start investing in stocks with a small amount of money which means it’s much easier to buy and sell without impacting the share price.
The small investor now has more access to information and research than ever before making it easier to start investing in stocks. We always tell investors not to invest more than 25% of their total equity portfolio in Small Cap stocks, which we define as stocks with market caps of less than $500m.
There is a lot of volatility in this space, but it is combined with big potential when you start investing. When the big rewards come, they are not to be scoffed at. Our top ten stocks have returned 650% on average. These are the best stocks of course and not all stocks perform at this level. When you start investing, you need a portfolio of seven to 10 stocks, which you are comfortable with holding for the long term.
Investing in shares is made easy with Under the Radar Report. We tell you when to Buy, Hold and Sell the stocks you start to invest in. To join, sign up for our 14-day free trial here.