Investing for Beginners 101 - How to Start Investing in the Stock Market for Beginners

Time 2020-07-15 09:04:50

Web Name: Investing for Beginners 101 - How to Start Investing in the Stock Market for Beginners

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A 36.8 year old investing 10% of their $51,939 income with a $3,116.34 match:With just average stock market returns of 10% would have $1,114,479.31 by retirement.Join 15,000+ other readers who have learned how anyone, even beginners, can easily make this desire a reality. Download the free ebook: 7 Steps to Understanding the Stock Market. Welcome to this 7 step guide to understanding the stock market. I ve created this easy-to-follow Investing for Beginners guide to simplify the learning process for entering the stock market.By leaving out all the confusing Wall Street jargon and explaining things in simple terms, I m hoping you ll find this as the perfect solution, if you are willing to learn.Before we get started, here is a breakdown of the 7 categories for the official Investing for Beginners guide.1. Why to Invest?2. How the Stock Market Works3. The BEST Stock Strategy and Buying Your First Stock4. P/E Ratio: How to Calculate the Most Widely Used Valuation5. P/B, P/S: The Single Two Ratios Most Correlated to Success6. Cashing In With a Dividend Is a Necessity7. The Best Way to Avoid Risk, and Putting it all Together!!Why is investing so important?Let s imagine a life without investing first. You work 9-5 for a boss all your life, maybe get a couple raises, a promotion, have a nice house, car, and kids. You go on vacation once a year, eat out regularly, and attempt to enjoy the finer things in life as best you can.Now since you haven t invested, you get old, become unattractive for hiring, and live with a measly social security allowance for the rest of your life. You might ve made good money when you were young, but now you have nothing to show for your lifetime of work.Now let s say you did save some money for retirement, but again this money wasn t invested and won t be invested.Let s even stay optimistic and assume you saved $1400 a month for 26 years. This would leave you with $403,200 to live on, which on a $60,000 a year lifestyle would only last you 6.72 years. You re retiring at 65 only to go broke at 71 and you ve been a good saver all your life.Well then what s the point of saving you may ask? Now let me show you the same numbers but add investing into the equation.The Power of Saving + InvestingAgain, lets say you saved $1400 a month for 26 years. BUT, this money was invested continuously as part of a long term investment plan, solid in the fundamentals you learned from this investing for beginners guide.Now, including dividends in long term stock market investments, I can confidently and conservatively say that you can average a 10% annual return on these investments.The same $1400 a month compounded annually at 10% turns your net worth into $2,017,670.19 in 26 years!But the story gets even better.With this large sum of money at your retirement, again conservatively assuming a 3% yield on your dividends, you can collect $60,530 a year to live on WITHOUT reducing your saved amount.Answer: Compounding InterestBy letting the power of compounding interest assist you in saving, you leverage the resources available in the market and slowly build wealth over time.It s not some mystified secret or get rich quick shortcut; this is a time tested method to become wealthy and be financially independent, and it s how billionaires like Warren Buffett have done it all their life.For those who don t want to think about tomorrow, I can t help you. But tomorrow will come, it always does.Would you rather spend the rest of your life with no plan, dependent on others and unsure of your future? Or would you rather be making progress towards a goal, living with purpose and anticipating the fruits of your labor you know you will one day reap for years after you sow?The choice is yours, and only YOU will feel the consequences of that choice. [continue reading ]If you listened to Episode 154 of the Investing for Beginners Podcast and you’re anything like me, some of the things that Andrew and Dave might’ve hit you pretty hard. Since COVID-19 has really been in full effect, I have found myself avoiding the news and in turn has left me seeking for some legitimate investing publications to continue strengthening my investing education.During the episode Andrew and Dave talked about how they have gotten off some major time suck apps such as Reddit, Facebook and even trying to limit Twitter, and I’ve never felt more in line with anything that they have ever said.  At the beginning of the year, I put a 20-minute limit on my Twitter usage every day and most days I hit the limit. Since COVID, I almost never hit it at all. I just don’t want to be on Twitter.Maybe it sounds bad but I just can’t take it anymore. I can’t take all the doom and gloom in the world. It depresses me and it has affected me in other ways too, including my desire to even listen to podcasts. I used to listen to literally 2-3 podcasts/day and now I don’t even listen to that many in a week!I feel like my investing efforts have slacked and maybe that means that I am leaving some money on the table, and that’s just unacceptable, so I really think that this podcast was the most perfect timing ever.Andrew and Dave really talked about three top investment publications for serious stock pickers, so I took the time to really check them out and wanted to provide my opinions on them – let’s check them out!If you’re like me, which I hope that you are not for your own sake, then you get most of your worldly information from Twitter. For better or for worse, that also includes any investing information, so let me share my favorite top financial twitter accounts!I’ve previously talked about some awesome Instagram accounts, YouTube channels and top blogs, but why haven’t I talked about my favorite Twitter accounts? Well, I don’t have a good reason, actually. I mean, I already told you that I get all of my news from Twitter, so I might as well share!Well, fortunately for you, I have a perfect mix of accounts (in my own eyes, obvi) of comedy, very simple and useful information, and then just pure quality information. Why are we wasting time with all this nonsense – let’s go!I have two accounts that are super straightforward with their info but they’re both super useful. The first one is Dividend Cut (@dividendcut)I have notifications setup on this account to alert me every time that they tweet. As you can see, all that they’re tweeting is anytime a company is cutting their dividend.The reason that I like this is because it’s a mental note to me when I see the notifications and when I see shocking cuts, I am then prompted to check this out even further.The next account that I like a lot is Earnings Whispers (@ewhispers). Earnings Whispers gives great information leading up to earnings calls and while I will never make a decision to buy or sell a stock solely based off the quarterly earnings of a company, I definitely do pay attention to those earnings.They create some really cool earnings calendars so you can see what is upcoming that week as well as some good technical charts:Lately I ve been taking a deep dive momentum stocks and I have going down a major momentum stock rabbit hole since then, so I figured, why not do my next book review on momentum stocks? Well, sure enough, if you Google “best momentum investing books” then ‘Dual Momentum Investing’ comes up, so let’s go with that book!Not going to lie, I am a value investor. I am continuously challenging myself to think differently than I have in the past, and I know that many of you are value investors like Andrew and Dave are as well, so I’m going to be coming at this entire review from a skeptical view and really trying to play devil’s advocate with things.I think that playing devil’s advocate is a great way to learn in many different areas of life as long as you do it politely and don’t ruffle any feathers, but I’m just writing a blog so who cares!Sure, the title might be a bit more click baity like some of my other articles about checking your portfolio daily and how if you’re dollar cost averaging then you need to stop right now, but oh well – that’s the point!As I mentioned, I’m going to review the book ‘Dual Momentum Investing’ by Gary Antonacci, and the book isn’t cheap by any means as it’s sitting on Amazon with a price tag of $44 and change , so we shall see if it’s worth it! And if not, that’s why you get to read all of my reviews

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