How To Invest $100 - $1,000 In The Stock Market
Published on: December 2 2022 by Sara Finance
How To Invest $100 - $1,000 In The Stock Market
Table of Contents
How To Invest $100 - $1,000 In The Stock Market
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00:00:00 | 00:00:03 | what is up guys Sarah here and for |
00:00:02 | 00:00:06 | today's video we're gonna be going over |
00:00:03 | 00:00:08 | how you can invest your very first 100 |
00:00:06 | 00:00:11 | 1000 or whatever amount of money in the |
00:00:08 | 00:00:12 | stok market now if you are complete |
00:00:11 | 00:00:14 | began into the stok market you clicked |
00:00:12 | 00:00:16 | on the wrong video I recommend you first |
00:00:14 | 00:00:17 | watch my stok market video for |
00:00:16 | 00:00:19 | beginners and then come back to this |
00:00:17 | 00:00:20 | video alright guys well before we |
00:00:19 | 00:00:22 | continue make sure you hit the like |
00:00:20 | 00:00:23 | button because it really really does |
00:00:22 | 00:00:25 | help out the channel and let's just get |
00:00:23 | 00:00:27 | into the video now assuming you've |
00:00:25 | 00:00:28 | watched my very first video you know |
00:00:27 | 00:00:30 | that you already have to have a |
00:00:28 | 00:00:32 | brokerage account that way you can buy |
00:00:30 | 00:00:34 | and sell stoks now that are the way |
00:00:32 | 00:00:35 | let's just tok about how much money you |
00:00:34 | 00:00:37 | need to start investing in the stok |
00:00:35 | 00:00:39 | market again a lot of people tell me |
00:00:37 | 00:00:41 | that a hundred dollars is it enough and |
00:00:39 | 00:00:43 | I'll be completely honest with you a |
00:00:41 | 00:00:44 | hundred dollars is more than enough to |
00:00:43 | 00:00:46 | start off with I think it's extremely |
00:00:44 | 00:00:47 | important to first start off a little |
00:00:46 | 00:00:49 | bit and kind of just build it up from |
00:00:47 | 00:00:51 | there that way you won't overwhelm |
00:00:49 | 00:00:53 | yourself now the next thing I want to |
00:00:51 | 00:00:56 | tok about which is extremely extremely |
00:00:53 | 00:00:58 | important is what investing strategy are |
00:00:56 | 00:01:01 | you going to take and for this video we |
00:00:58 | 00:01:03 | are gonna focus on long-term investing |
00:01:01 | 00:01:05 | but there are two approaches to take |
00:01:03 | 00:01:07 | within long-term investing so the first |
00:01:05 | 00:01:10 | strategy I want to tok about is known |
00:01:07 | 00:01:12 | as the growth strategy basically this |
00:01:10 | 00:01:14 | means you are hoping to buy stok and |
00:01:12 | 00:01:16 | hold on to it for a while and hope that |
00:01:14 | 00:01:18 | the value of the stok skyrockets |
00:01:16 | 00:01:20 | long-term that way you can sell it and |
00:01:18 | 00:01:23 | get a huge return for example let's just |
00:01:20 | 00:01:26 | say you bought Delta back in 2009 and |
00:01:23 | 00:01:28 | you decide to sell it in 2019 you would |
00:01:26 | 00:01:30 | end up getting a huge return on that |
00:01:28 | 00:01:32 | investment so basically it's like |
00:01:30 | 00:01:34 | investing in an undervalued company and |
00:01:32 | 00:01:37 | hoping that its value will skyrocket |
00:01:34 | 00:01:37 | long term that way you can cash out in |
00:01:37 | 00:01:39 | the future |
00:01:37 | 00:01:42 | now the next strategy I want to go over |
00:01:39 | 00:01:44 | is dividend investing so this means your |
00:01:42 | 00:01:46 | goal is to collect dividends long term |
00:01:44 | 00:01:48 | so I'll give you guys an example of what |
00:01:46 | 00:01:51 | this means so let's say right now you |
00:01:48 | 00:01:53 | decide to buy one single Apple share so |
00:01:51 | 00:01:54 | when you buy the share you're becoming |
00:01:53 | 00:01:56 | part owner of the company so you're |
00:01:54 | 00:01:59 | giving your money in exchange for a |
00:01:56 | 00:02:01 | piece of Apple and because of this you |
00:01:59 | 00:02:03 | are paid dividends which essentially is |
00:02:01 | 00:02:05 | cash that is paid out to you by the |
00:02:03 | 00:02:08 | company basically you can think of it as |
00:02:05 | 00:02:10 | an incentive and usually this amount is |
00:02:08 | 00:02:11 | paid o yearly or every three months |
00:02:10 | 00:02:13 | depending on |
00:02:11 | 00:02:15 | company this requires no extra work it's |
00:02:13 | 00:02:17 | just additional income that you get to |
00:02:15 | 00:02:19 | receive by doing absolutely nothing and |
00:02:17 | 00:02:21 | a different amount you get paid can |
00:02:19 | 00:02:23 | either be put back into your account so |
00:02:21 | 00:02:25 | that you can reinvest it or just cash |
00:02:23 | 00:02:27 | out now the goal for most people when it |
00:02:25 | 00:02:29 | comes to dividend investing is to build |
00:02:27 | 00:02:31 | up a stok portfolio that pays enough |
00:02:29 | 00:02:33 | dividends so that you can earn a decent |
00:02:31 | 00:02:35 | amount of income that will replace your |
00:02:33 | 00:02:37 | income from your job a lot of people |
00:02:35 | 00:02:38 | will build up their stok portfolio to |
00:02:37 | 00:02:40 | the point where they're getting paid a |
00:02:38 | 00:02:41 | really good amount of dividends and they |
00:02:40 | 00:02:44 | can just retire so if you're young now |
00:02:41 | 00:02:46 | and you just put aside all your savings |
00:02:44 | 00:02:46 | in a stok that pays really good |
00:02:46 | 00:02:48 | dividends |
00:02:46 | 00:02:51 | like for example TD Bank they pay about |
00:02:48 | 00:02:53 | 5% you can expect many years down the |
00:02:51 | 00:02:55 | line to have a consistent income stream |
00:02:53 | 00:02:57 | from dividends alone now you can |
00:02:55 | 00:03:00 | obviously do both dividend investing and |
00:02:57 | 00:03:02 | growth investing but I personally do |
00:03:00 | 00:03:04 | both and I'd recommend that as well but |
00:03:02 | 00:03:05 | you honestly just have to think about |
00:03:04 | 00:03:06 | what's best for you and what's your end |
00:03:05 | 00:03:08 | goal |
00:03:06 | 00:03:10 | so just to recap for growth investing |
00:03:08 | 00:03:11 | you basically want to cash out in a |
00:03:10 | 00:03:13 | couple of years and get a huge return |
00:03:11 | 00:03:15 | from selling we're toking like a |
00:03:13 | 00:03:17 | thousand dollars or more if your |
00:03:15 | 00:03:18 | dividend investing you would like to |
00:03:17 | 00:03:20 | receive income yearly from your |
00:03:18 | 00:03:22 | investment by doing absolutely nothing |
00:03:20 | 00:03:25 | all right guys so now that we've got the |
00:03:22 | 00:03:26 | two main investing strategies down the |
00:03:25 | 00:03:28 | third thing and one of the most |
00:03:26 | 00:03:30 | important things is how to figure out |
00:03:28 | 00:03:32 | what stoks to buy well the first thing |
00:03:30 | 00:03:33 | I say especially for beginners is to |
00:03:32 | 00:03:35 | actually just look at companies that |
00:03:33 | 00:03:37 | you're already familiar with for example |
00:03:35 | 00:03:38 | if you like Starbucks why not do some |
00:03:37 | 00:03:40 | research on the company if you love |
00:03:38 | 00:03:42 | going Disneyland every years and why not |
00:03:40 | 00:03:44 | also do some research on Disney let's |
00:03:42 | 00:03:45 | say you have an iPhone and always buy |
00:03:44 | 00:03:48 | Apple products well why not look into |
00:03:45 | 00:03:50 | investing in Apple this is a great way |
00:03:48 | 00:03:51 | for beginners to start in my opinion and |
00:03:50 | 00:03:53 | this is exactly what I did when I first |
00:03:51 | 00:03:54 | started out as well but of course a |
00:03:53 | 00:03:57 | couple questions you have to ask |
00:03:54 | 00:03:59 | yourself when using the strategy is do |
00:03:57 | 00:04:00 | you believe in the company do you think |
00:03:59 | 00:04:02 | the companies get a thrive long-term |
00:04:00 | 00:04:04 | does the company have a good reputation |
00:04:02 | 00:04:06 | do you think the company will ever go |
00:04:04 | 00:04:08 | bankrupt and is the company paying the |
00:04:06 | 00:04:09 | dividends this is honestly the easiest |
00:04:08 | 00:04:11 | way for beginners to start investing |
00:04:09 | 00:04:13 | also if you are still confused on which |
00:04:11 | 00:04:15 | stoks you could buy I didn't make two |
00:04:13 | 00:04:16 | youtube videos on it so make sure you |
00:04:15 | 00:04:18 | check those out also another thing I |
00:04:16 | 00:04:19 | want to go over is let's say you're |
00:04:18 | 00:04:21 | starting off with a small amount of |
00:04:19 | 00:04:23 | money like a thousand dollars |
00:04:21 | 00:04:25 | in some stoks out there that cost |
00:04:23 | 00:04:27 | $1,000 by themselves so do you want to |
00:04:25 | 00:04:29 | dump all your money in just one company |
00:04:27 | 00:04:31 | or would you rather kind of diversify it |
00:04:29 | 00:04:32 | I'll be honest with you guys I think |
00:04:31 | 00:04:34 | it's way better to diversify your |
00:04:32 | 00:04:38 | portfolio so instead of investing close |
00:04:34 | 00:04:40 | to $1,000 in just Shopify you can just |
00:04:38 | 00:04:44 | add versa fire portfolio and buy several |
00:04:40 | 00:04:47 | stoks such as TD Bank Air Canada Disney |
00:04:44 | 00:04:49 | Starbucks Microsoft and Apple so you |
00:04:47 | 00:04:51 | just invested in six companies and |
00:04:49 | 00:04:52 | instead of just one |
00:04:51 | 00:04:55 | this definitely is the approach I would |
00:04:52 | 00:04:57 | take as a beginner also for me as a |
00:04:55 | 00:04:59 | complete beginner just to get my feet |
00:04:57 | 00:05:00 | wet I would probably want to invest in |
00:04:59 | 00:05:03 | bigger companies that have great |
00:05:00 | 00:05:04 | business models to start so for example |
00:05:03 | 00:05:07 | the tik sector has some really good |
00:05:04 | 00:05:10 | options that will thrive long term like |
00:05:07 | 00:05:12 | Apple Microsoft and Facebook and then |
00:05:10 | 00:05:14 | I'd also look into some stoks that pay |
00:05:12 | 00:05:17 | pretty good dividends for example TD |
00:05:14 | 00:05:18 | Bank this company has a great history of |
00:05:17 | 00:05:20 | paying their dividends and their |
00:05:18 | 00:05:22 | dividend yield is looking pretty good |
00:05:20 | 00:05:24 | right now another thing I want to |
00:05:22 | 00:05:26 | mention before we end off the video is |
00:05:24 | 00:05:28 | kind of just overcoming your fear of |
00:05:26 | 00:05:30 | investing in the stok market I notiked |
00:05:28 | 00:05:31 | a lot of beginners are kind of worried |
00:05:30 | 00:05:33 | too fast they don't really know what's |
00:05:31 | 00:05:35 | gonna happen it kind of scared that they |
00:05:33 | 00:05:37 | might lose their money I'll be honest |
00:05:35 | 00:05:39 | with you guys it's as simple as buy hold |
00:05:37 | 00:05:41 | that's all you have to do don't get so |
00:05:39 | 00:05:43 | caught up in stok going up and down |
00:05:41 | 00:05:45 | trust me if you buy in a company that |
00:05:43 | 00:05:47 | you believe will thrive long-term if you |
00:05:45 | 00:05:49 | just be patient and hold it definitely |
00:05:47 | 00:05:51 | is going to go up in value and if you've |
00:05:49 | 00:05:53 | made it to the end I'm just gonna give |
00:05:51 | 00:05:55 | you guys a list here of the stoks that |
00:05:53 | 00:05:57 | I would be investing in as a complete |
00:05:55 | 00:05:59 | beginner obviously this is my opinion |
00:05:57 | 00:06:01 | but you can definitely look into these |
00:05:59 | 00:06:05 | companies for yourself the first one is |
00:06:01 | 00:06:08 | Apple second one is Disney third one is |
00:06:05 | 00:06:12 | Microsoft fourth one is Facebook fifth |
00:06:08 | 00:06:16 | one is Amazon if you can afford it sixth |
00:06:12 | 00:06:19 | one is TD Bank seventh one is Johnson & |
00:06:16 | 00:06:22 | Johnson the eighth one is coca-cola and |
00:06:19 | 00:06:24 | the ninth one is Visa all right guys |
00:06:22 | 00:06:25 | well that was all for this video I |
00:06:24 | 00:06:27 | really really hope this helped you or |
00:06:25 | 00:06:28 | just kind of cleared things out make |
00:06:27 | 00:06:30 | sure you let me know down below in the |
00:06:28 | 00:06:32 | comments what kind of videos you guys |
00:06:30 | 00:06:33 | want to see from me but with that being |
00:06:32 | 00:06:34 | said thank you guys so much for watching |
00:06:33 | 00:06:36 | and |
00:06:34 | 00:06:36 | next time |