Ernest

The Stock Market 101

09/05/2024 UPDATE: Are you (American or Westernized man) unsure, undecided, and/or overwhelmed about the stock market? If so, based on my recent experience, I strongly recommend that you create watchlists on online brokers such as Robinhood, Betterment, Vanguard, Charles Schwab, Interactive Brokers, CashApp, etc.? Please create watchlists based on these categories or classes of investments:

Consequently, you are able to search and pick all the stocks, ETFs, bonds, etc. that you want. Just make sure to put them in proper order by sorting them in the right watchlists. Begin buying fractional and/or whole shares of the assets. Become an “investment gardener” like I am by analyzing them, seeing which ones are “growing” or helping you gain profit, and then purchasing more shares of the ones that are going to make you wealthy someday. You should realize that you can avoid consulting financial advisor(s) or taking expensive financial course(s). Self-teaching is the bona fide way to go for financial, personal, and professional success.

All you have to do is:

You are going to feel like a king once the profits from your investment portfolio(s) increase.

Anyways, please continue reading additional details about the stock market below.

Thanks.

Introduction

Frequently streaming YouTube videos of TikTok rants of varied people who are frustrated or disappointed from the rise of unemployment, minimum wage jobs, inflation, and other national/cultural problems has urged me to write this blog post. If you are fatigued of dealing with similar difficulties as I am, please proceed and take heed to my words. I want you and multiple readers to follow, share, print, etc. my original guide below concerning improvement of your finances and income.

If you initially wish to read prior blog posts that relate to this course, click the text links:

Besides that, please skip and scroll down to my one of a kind procedure so that you can purchase stocks, bonds, exchange-traded funds (ETFs), cryptocurrencies, etc. constantly and become a millionaire/billionaire in the future.

guide for amateurish investors – freedominabudget.com

Step 1: Before you begin investing in the stock market, jot complex words that you fail to understand from different sources (i.e. YouTube videos, Google research, physical books, so on).

If you read, listen, or watch multiple financial terms that are too difficult for you, please get notebook(s), ink pens (blue, black, and red), and 1 – 2 yellow highlighters for listing them. Worry about organizing the extended list of words later by creating a long alphabetical list (from 0 – 9 to the letter ‘Z’) on Microsoft Word software. I say this due to putting more focus and collecting as many complex financial words as possible. Like myself, you should be astonished of how much knowledge you can gain from finances, investments, etc. in a short time. The only regret that I have is not motivating or instructing myself of the stock market and other related topics years ago. However, at least I have begun FCW business with my former Ukrainian interpreter (Elizabeth) in Summer 2020 (4 years ago). Not only am I more determined to finish FCW website entirely but also I want to educate myself, you, and other humans numerous vocabulary terms of finances, stock market, etc. for the long run. The positive results of growing, examining, and using complicated words to our benefit (through various sources) are:

Step 2: Search and define difficult/confusing terms that you have written and collected on your notebook(s).

Honestly, why are most of the words describing finances, entrepreneurship, investments, etc. so hard to understand? My top reason is keeping many individuals especially minorities and low-income workers in the dark. I indeed fit in both of those categories. Fortunately, thanks to the Lord Jesus Christ, I am capable, willing, and fast to learn plus summarize a definition of each financial term on my notebook(s). Additionally, I am also grateful to Him for providing me the inner capacity to perceive new or extra monetary data from online articles and blog posts, physical books, digital podcasts, YouTube videos, etc. If you repeat the same duties that I do, you can fully wake up your eyes in the world of finances eventually. Above all, it is waiting for you to make better, wiser, or tougher decisions regarding the funds that you earn, spend, and even save.

Step 3: Select the online brokers (aka brokerage websites) that are suitable for your financial needs/desires.

To put your mind at ease, just type the best online brokers on Google, YouTube, or some other similar website. In fact, here are several popular brokerage websites (or apps that you can download and install on your mobile phone) that are convenient for your financial goals:

There are plenty of other online and maybe brick-and-mortar (i.e. Edward Jones Investments) brokers if you are not interested in the ones that I have explained. Despite of which ones suit your needs and/or wishes, please investigate and choose wisely based on these necessary aspects:

If vital, come up with a list of brokerage websites/apps/places that you would consider registering, investing, and executing your fiscal intents. Talk to someone who is trustworthy, successful, and capable of having your best interest at heart. Test yourself, study supplementary facts, and read more prior/current customer reviews in order to uncover the befitting brokers that make you so comfortable in often investing and even reinvesting.

Step 4: If necessary, take careful notes and write required steps of registering and creating brokerage accounts.

Reading and writing can take you further to both personal and professional achievement. But, when it comes to your fiscal success, you should create a step-by-step financial approach to follow and use for growing your wealth. If you need assistance in concocting a coherent process or how to make an account on the broker of your choice, please visit any of these clickable text links:

Reading and taking notes of any or all of those 6 financial webpages should give you full satisfaction. Other than that, ask and answer the “5W and 1H” questions which are:

  • Who?
    • Describe the person or people.
  • What?
    • Describe something that he, she, or they intentionally do.
  • When?
    • What day(s) and time(s) does he, she, or they do something in particular?
  • Where?
    • What place(s) does he, she, or they do something in particular?
  • Why?
    • What are his, her, or their reasons for the action(s)?
  • How?
    • Which steps does he, she, or they follow for success?

Seeking support from a cheap robo-advisor that helps you choose the right account plus assets on a brokerage website/app or an expensive human financial advisor who does the same is clever and perhaps beneficial to your brain. As a result, you should be able to relax or pay more attention to your other responsibilities.

Do not forget these 3 things:

Step 5: Pick and list the types of stocks, bonds, ETFs, index funds, cryptocurrencies, etc. that you specifically crave.

Which stocks delight you – small-cap, mid-cap, big-cap, value, growth, common, preferred, so on? Do you repeatedly wish to invest in dividend, growth, fundamental, etc. ETFs? Do you see yourself in partially or entirely owning land plus residential, commercial, and/or industrial buildings through real estate or real estate investment trusts (REITs)? Reply to any of these questions candidly. Form you own questionnaire or list concerning a variety of investments (i.e. stocks, bonds, index funds, money market funds, so forth) and their own kinds (e.g. Starbucks (SBUX), Fidelity Total Bond Fund (FTBFX), J.P. Morgan Equity Premium Income ETF (JEPI), etc.). Watch financial videos from certain YouTube channels in order to select auspicious assets for your goals whether they are short-term, long-term, or both:

  • “Investing Simplified – Professor G”
  • “ClearValue Tax”
  • “Marcos Milla”
  • “Smart Money Bro”
  • “Minority Mindset”
  • “BWB – Business with Brian”
  • “John’s Money Adventures”
  • “The Dream Green Show”
  • “Optimized Portfolio”
  • so on

Step 6: Clean, organize, diversify, and maintain your investment portfolio(s) at a minimum.

If you desire prevention or removal of unwanted dust, bacteria, rodents, insects, etc. from your house, regularly keep it pristine and arranged. For your asset allocation, you need to have the same mentality and behavior too. According to authors Tiffany Lam-Balfour of “Nerdwallet” website and John Williamson, APMA of “Optimized Portfolio” website, their good reasons below can aid you in making the ideal investment portfolio(s) to fulfill or exceed your fiscal expectations:

  • raising your passive income from assorted sources
  • avoidance of market volatility
  • promoting or supplying equity to stocks, bonds, ETFs, etc.
  • including bonds or other fixed-income securities in portfolio(s) for safety from stock market crashes
  • experiencing ups of certain investments, downs of other assets, and vice versa periodically
  • not putting all your money in the only one investment
  • selecting single stocks or stock ETFs as the core or central assets of the portfolio because of their high returns
  • consideration of exploring regional, national, and global assets that have rewarded investors with abundant wealth

Furthermore, please remember these 3 suggestions for making smarter monetary choices:

  • Pick 5 – 10 diverse investments or even less than 5 for more stability, security, and simple gain of fiscal profits.
  • Later, if you see new assets that excite you, consider them as replacements of existing ones in your investment portfolio.
  • If your portfolio has too many assets, you might lose some money.

Stream this YouTube video so that you can grasp a whole meaning of proper diversification of your ideal portfolio:

“The Top 5 ETFs in my Investing Portfolio (Finance Professor Reveals)” video – “Investing Simplified – Professor G” YouTube channel

Step 7: Choose the amounts and frequencies that you want concerning recurring investments.

How much money are you willing and able to invest in cryptocurrencies, REITs, bond ETFs, etc.? Do you prefer to perform these transactions one time only or repeat them daily, weekly, biweekly, monthly, or through some other frequency? To help you answer both questions, I strongly advise you to use a durable notebook(s) for recording difficult words from financial articles, blog posts, videos, etc. and thus obtaining your monetary goals. Moreover, scrutinize an electronic investment calculator by writing and defining its terms (11) such as:

I have organized the words so that you can comprehend and progress with an investment calculator form. Unless you enjoy analyzing by taking notes and finding each of their meanings on Google or a dictionary, you may need to contact and hire a financial advisor (human) for crucial cooperation. Regardless of which option that you choose for your view of an investment calculator, please keep in mind these 2 things:

  • If you feel comfortable in having money automatically deducted from your checking or savings account, please pick the correct amount and frequency that suits your needs or wishes.
    • For example, if you want to be charged $10 per week on your Acorns brokerage account, then you should do so.
    • Subsequently, you may change your mind and change the amount and frequency options based on how much you earn or desire to have for your passive income.
    • Repeat such actions on other brokers that you voluntarily join.
  • The manual possibility should be proposed if you are concerned about your funds.
    • Planning the amount of money that you want or need for spending, saving, and investing is necessary if you work at a low-wage job or have a not-so-profitable business.
    • How much that you totally invest in assets that you, a robo-advisor, or a human advisor selects depends on how much you are going to have for your retirement or long-term ambitions.

Visit any of these 8 text links for help in understanding and utilizing an investment calculator:

Step 8: Finally, continue investing in the stock market for both of your short-term and long-term goals.

Devote yourself and be persistent with your investments regardless how their costs fluctuate. No one, except the Lord God, is able to predict the assets that are going to raise your passive salary and the ones that would eventually do the opposite. If you ever become concerned or hesitant of what (i.e. Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) or Chipotle (CMG)) you are investing, just dig up extra details on Google, Yahoo! Finance, YouTube, Nasdaq, MarketWatch, etc. Reading or listening to someone who is fully aware of the particular assets within your potential portfolio can help you decide if any of them is worthy in keeping, selling, or trading. One special class of investment that is never going to disappoint you is a dividend stock, bond, or ETF. You are always reminded and recompensed a small fund every 3 months or quarter of a year. 2 options on a broker website should be shown to you:

  • Retain the money.
  • Reinvest it in your portfolio which consists the same assets, different ones, or both.

Dividends may be useful for your short-term goals or emergency reasons. Nevertheless, reinvestments can grow into a “tree” which may leave you ample wealth for yourself and your loved ones.

Encourage, share, and let them know that it is never too late to change, follow their dreams, and become millionaires someday.

Conclusion

If you have always been in the dark about the stock market before reading this blog post, then hopefully you can now become an expert like I desire. I have done my very best in simplifying the 8-step process for you and other readers who crave financial growth in the future. Again, I highly recommend you to list and record complex financial terms that you do not quite know or understand. Doing this task over and over has absolutely assisted me in easily selecting proper brokerage websites/apps, accounts, and investments for my monetary goals.

When it comes to your financial health, the stock market is essential for you to study, practice, and use to your benefit.

Award yourself as well as your relatives and friends free financial education.

The possible outcome is to win an unexpected reward if you ever become committed to long-term investing.

If you enjoy this introductory course that I have originated, please:

  • click the “Like” button
  • leave me a honest comment below
  • subscribe to this amazing blog of 7 years
  • share my information with others who deserve to know how much money they can earn from company stocks, bonds, ETFs, index funds, and other assets

Thanks for reading.

“Investing for Beginners – How I Make Millions from Stocks (Full Guide)” video – “Mark Tilbury” YouTube channel

“98% Of People Make THIS Mistake When Investing In Stocks…” video – “Minority Mindset” YouTube channel

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