How to Start Investing in Stocks If You Can’t Afford to Lose Money

When it comes to the stock market, everybody wants a piece of the pie. But only a daring few make the plunge and are successful.

A common statistic about day trading is that 95 percent of traders will lose money.  Read on to learn how to avoid becoming this statistic if you want to learn how to start investing.

How to Start Investing

When it comes to investing in the stock market, the way to begin is by first learning the basic ropes of trading. But this can be overwhelming to traders.

Don’t expect to learn everything overnight, and don’t try to. If you do, you will very quickly reach the burn out point as many other traders do.

It is estimated that 80 percent of day traders will quit within the first two years. And many successful traders don’t know every in and out of the market.

You just need a little bit of capital, and a little bit of knowledge on the markets you want to invest in, and what impacts market trades.

But you don’t have to learn about this all at once.

Be Open-Minded

You also need to be open-minded when it comes to your trades and investment portfolio. A successful investment portfolio is diverse and has a lot of different stock and trading options in it.

This can range from mutual funds to blue-chip stocks, with a healthy sprinkling of everything in between. Diversifying is the easiest and fastest way to earn money.

That’s easy to do if you have a cash flow to play with. But if you don’t, you can still find a way diversify on a small or low initial investment.

At the end of the day, most people that invest in the stock market don’t want to lose money. They want to make money.

So you’ll have to go in knowing there is always going to be that risk. As you learn the ropes and start seeing some results you will get more comfortable with putting your money where your blue chips are.

Discover 6 ways to potentially make $10,000 with a few hustles so that you can get your nest egg ready for trading.

What Does Diversify Mean?

When the general public thinks of the stock market, they instantly think of companies like Apple or Google that are always talked about on the news when it comes to their trading rates. But that is only one tiny piece of the big stock trading pie that is known as diversifying your portfolio.

Diversify means to have a number of different things in your portfolio that will grow in time.

Stock trading and investing are much more complex than knowing what the blue chips like Apple and Google are doing. You don’t even need to understand it completely to take advantage of it.

To diversify your portfolio means to have a little bit of everything in it. You can start with as little as a few dollars a week, and establish a mutual fund which is a variety of different stocks in one portfolio.

And you can play the market on your own time with any extra cash that you have kicking around. Learn how making money means time freedom and start dreaming about that portfolio.

Cash Equivalent Investments

One way to invest and diversify without losing any money is to consider a cash equivalent investment. This is essentially a market such as a money market, currency exchange, or a certificate of deposit.

You won’t lose money on these investments, but it will take you some time to earn from them as well.

Online Brokers

Online brokers are another way to stat small in the stock trading world. You begin with a standard deposit, and buy stock from that.

Some online brokers offer investment advice through “RoboAdvice” which streams investment tips and help to your computer as you trade.

Learn the Basics of Investing

You don’t need to have the insider knowledge of trading as if you were an employee on “Billions” but you do need to know the basics of investing.

The more information you have about the companies you want to trade with the better. Learn what a company’s stock history is, and you should be able to get a brief on every company before you invest.

Also keep in mind things like inflation and social and political movements as well. Something such as an earthquake could impact the pharmaceutical company you are considering if they are located in the path of disaster.

All of these little things you need to learn little by little as you begin trading.

You also need to learn the basics of trading. How much one share costs, what its history is, and how much you can afford to invest.

Learn about the little things like how much it costs to even do a trade or make an investment. Some companies will allow for trades as low as $5, and some may cost you as high as $10.

That means if you perform 5 trades in one day, you will have between $50 and $100 in fees. You also want to learn how to handle investment loss appropriately, and this may mean seeking the assistance of an expert such as a stock attorney.

Know about all of these little ins and outs before you start trading.

Invest In Your Future

Everyone wants to make the next rung of the ladder of success, but when it comes to investing, you need to know a little bit about how to do it before you cash in.

But you don’t need to know everything.

Some research indicates that traders and investors with higher IQ’s have a diverse portfolio when it comes to their investments. And that doesn’t mean they started out with a huge amount either.

Like any skill, you just need a little bit of know-how and a lot of practice to do it smart, and do it right. If you can go in with that mindset, you may not become the darker end of the statistics of trader burnout.

Before you learn how to start investing, check out these 10 online side hustle ideas and start dreaming of your portfolio today.

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One Comment

  1. Beau W. says:

    Im very happy with the Roboadviser way of investing. I have a ways to go before retiring so they do the work and I don’t have to worry about it. Just keep adding my cash. Please put me on your email list too if you can.

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