Part I – Investing in stocks online for beginners … what to expect and not expect!

Part 1 - investing in stocks online for beginners

I think it is time for us to venture into the ‘not so scary’ world of investing.  But before we do so, let’s make on thing clear, being apprehensive at first about funneling your money into the stock market is normal.  We’ve all been there.  Keep reading and we will work on turning that apprehension into excitement!  So without further ado … part one of dipping your toes into the waters of investing … “investing in stocks online for beginners”.  And most importantly, what you can expect and not expect!

Having your cash accessible in your savings is so much safer, right?  Sure, but it isn’t very smart.  Your savings account isn’t working for you while sitting pretty.  And if you’ve been playing it old school by keeping your cash under the mattress, well damn.  That strategy is definitely not working.  At all!  Although I’d admittedly love to get a visual of that.  Nevertheless, it is time to dig it up, dust off the dust bunnies, and turn it into the stock market energizer bunny.

Part 1 - investing in stocks online for beginners(photo credit www.energizer.com)
photo credit: www.energizer.com
Investing in stocks online for beginners … what to expect!

Investing in the stock market as a beginner will be a learnings curve for most, if not all.  I remember the first time I chose my 401k retirement account selection.  There I sat at my desk at work about a decade ago, scratching my head at which stocks to pick.  The choices seemed overwhelming.  But, instead of hiding under my desk and blindly picking or, worse, not investing at all, I toughened up and put in the time it took to learn what I needed to know.

Over time, you can expect market crashes.  They are NORMAL and part of every day/month/year/decade investing life.  The good news is, market crashes have and will always turn back around.  At the end of the day, even with its ups and downs, the market will always grow and so will your assets.  It is important to remember, investing is a marathon, not a race.   If you exercise discipline (meaning don’t cash out at the first dip in the market) and patience, the stock market will work for you.

Take the S&P 500 as an example.  During its history, the stock market has lived through recessions, inflation, and crashes.  One of them being the 2008 crash we all have lived through and some of us probably still have nightmares about.  However, as you can see, over time the stock market has always recovered as well as grown.

Part 1 - investing in stocks online for beginners chart (photo credit www.macrotrends.net)
photo credit: www.macrotrends.net
Investing in stocks online for beginners … what not to expect!

I have heavily eluded to already what you shouldn’t expect when investing in the stock market.  -> a smooth ride <- The stock market will have ups and downs over the ‘hopefully’ decades you will invest.  Instead, it will resemble a roller coaster which you will patiently laugh at, leave your investment where they are, and go about your life like nothing has happened.  Pulling out at low prices and buying in at high prices will only lose you money.

The biggest, never-ever-to-have expectation is wanting investing in the market to be a ‘get rich quick’ scheme.  Picking the next winning stock is impossible.  Investment advisors telling you they can predict the market are LIARS.  No one can predict the market and its movements.  So chasing the next, hot stock is equal to gambling.  Can you try?  Sure!  Should you?  Depends on your adversity to risk.

There you have it.  A few things to consider before jumping head first into investing.  If you are looking to put your hard earned cash to work and are tough enough to sit out market ups and downs, you are ready to invest!

Enjoyed this post?  Check out this complete listing of posts for more personal finance must reads!

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