Wondering how to start investing in stocks? Well, you’re not alone. Stock investing for Dummies is probably a common topic of discussion for most Canadians.
Thankfully, learning about how to start investing in stocks isn’t as difficult as it seems. In fact, anyone can start investing in the stock market — even with as little as $1,000 or less. Where should you start? A good option is to read our primer on stock trading basics.
So, you’ve got a basic idea of how individual stocks work and you want to start investing.
ETFs and mutual funds are a good way to get started because they both involve investing in an already diversified portfolio that other people do the tedious research on. Which one to go with is a subject of its own debate, but as Investopedia explains concerning ETFs:
ETFs do stand apart as an investment category with some real positives for individual investors. As a cost-effective way to achieve a broadly diversified portfolio, including hard-to-own (but worthwhile) assets, ETFs are hard to beat. Accordingly, almost any investor may find that ETFs can play a useful role – whether in place of or amidst a portfolio of stocks and bonds.
Fortunately, these days it’s pretty easy to get an investment portfolio set up. There are a number of sites you can sign up for that will allow you to invest in individual stocks or buy into a mutual fund or ETF. Once you’ve chosen the service you want to use, be sure to set up some automatic withdrawals from your savings account to send money from each paycheck to your investment account.
Although you don’t have to immediately make investments with that money, but by keeping that money out of your primary bank, you can trick yourself into saving money.