MarketWatch #3
This week, I’m helping a friend of mine that told me that he is ready to start trading stocks. If you have additional thoughts, please drop them in the comments or join the conversation on Twitter.
Today, I’m giving you 3 tips of advice that I learned when I started out. Then, I’ll show you 3 stocks that you should consider buying FIRST. Here’s a quick pointer I learned: Stay away from the most talked-about stocks. Usually, those are the stocks with a lot of highs and lows in the market. You don’t need your money being thrown around in the beginning, a solid base will give you breathing room if the market breaks.
Disclaimer: MarketWatch is for entertainment purposes only. It is important that ALL investors conduct their own market research to determine the best investments for their portfolio. Please do not blindly follow me or any random person on the internet, there are professionals for that. MarketWatch is intended to give you insight into my investment portfolio and my analysis of each investment that is discussed. Please feel free to share any comments or questions below.
This week, I’m helping a friend of mine that told me that he is ready to start trading stocks. If you have additional thoughts, please drop them in the comments or join the conversation on Twitter.
Today, I’m giving you 3 tips of advice that I learned when I started out. Then, I’ll show you 3 stocks that you should consider buying FIRST. Here’s a quick pointer I learned: Stay away from the most talked-about stocks. Usually, those are the stocks with a lot of highs and lows in the market. You don’t need your money being thrown around in the beginning, a solid base will give you breathing room if the market breaks.
Here are 3 more tips:
Tip #1: Buy the companies that you believe in first.
If you shop there, you should own it. This is the low-hanging fruit that is often overlooked by new investors.
Tip #2: Start small — You don’t need $1,000 in the bank to start investing.
Some brokerages let you buy small parts of big companies like Amazon and Tesla. If you don’t want to pay for a full share, don’t. My rule of thumb is to own as many of the companies that I love as possible.
Tip #3: Find a free brokerage — Don’t pay to start the game.
Check out Robinhood if you need a free trading option. You and I will get a free stock when you signup.
Now, let’s look at three companies that sell consumer goods that you may have at home. Likely, these are the companies that you like or trust.
Walmart (WMT): Love ‘em or hate ‘em, Walmart is a leader in its space. One of the biggest suppliers for businesses and consumers, Walmart has captured nearly the entire market. There’re always new and exciting companies to invest in, but companies like Walmart are how the big investors win. Do future self a favor, consider watching Walmarts stock. If you can't buy their stock today, they are CERTIFIED MarketWatch material.
Amazon (AMZN): Jeff Bezos recently reclaimed his role as the head honcho for all of the billionaires in the world, and while shares were down nearly $50 since last week, there is no reason to worry about them as an investment. With new opportunities to build their relationship with the government, we could see one of the largest suppliers of medicine begin distribution talks for the COVID vaccine and potentially other vaccines in the future. This is speculation, but it is a solution to an urgent problem.
As well as that, last month was the greatest online shopping frenzy in history and Amazon was the clear front-runner. You already know that this company is ESSENTIAL to our economy, and our lives, so owning it isn’t a bad idea.
ATT (T): People love their phones and I know that your likely no different. Why not own your phone company? This is a great place for new investors to start. You need to find businesses that offer evergreen goods and services — These are companies that offer products and services that are always needed (Ie. Cell phone service).
Another Note: AT&T offers one of the highest dividends out there, so that means you get paid money just for owning their stock. Yeah, it’s a double-dip in the cookie jar, and it looks beautiful on your taxes. If that’s not enough, check out their charts, they are incredibly cheap right now. Especially compared to what we saw from them before Feb 28, 2020.
That looks like the COVID effect, in my opinion. There is no denying it, world crises are terrible for the majority of people and we have little control when these things happen. But, you are in control of your wallet, so buy companies while they are low and sell them when they are HIGH.
REMEMBER: The single most important thing that you can do when you invest is to do your research. Do not blindly listen to TV, podcast, blogs, or anyone trying to give you investment advice. Know the market and trust yourself, this is the key to building an account that you and your next generation can be proud of.