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What do you need to go into stocks?

I want to be an entrepreneur, go into investing, and into stocks, and then eventually start living life the way I want.
#entrepreneur #yolo #investing #stocks


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Matthew’s Answer

Jordan,

Entrepreneurship and investing are great ways to achieve financial freedom. The most important thing is to work hard and have a growth mindset. If you have a hunger to learn, grow and become a better person each day you will succeed. One of the challenging things about investing is the constant flow of new information. You have to have a process for managing your information and risk. Hedgeye is an amazing tool that Hedge fund managers use to manage risk. https://app.hedgeye.com/

The other challenging thing is having capital to invest in the first place. It takes money to make money. You need to be able to save your hard earned capital. Easier said than done. There are budgeting apps like Mint that can help you with that. https://www.mint.com/ One way to make lots of capital quickly is to go into sales related jobs that pay out high commissions. You can use those commissions to re-invest and trade.

Listen to podcasts like TIP (The investors Podcast) with Preston Pysh and Stig Broderson. The more you learn from the best, the easier it is to become the best. https://www.theinvestorspodcast.com/

Investing and trading is a life long process and learning experience. Becoming a great investor is more about self control. Most people trade on emotion. Understanding yourself is a key part of this process.

Good luck on your journey and BELIEVE IN YOURSELF! You are the hero of your own story.

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Dan’s Answer

Hi Jordyn,

These three gentlemen clearly are passionate about investing and likely work in a career around investing and finance. While investing can be a lot of fun, I started similar to you with a passion for investments. However, after twenty years of experience, I would suggest considering starting with a degree in psychology or marketing. As the other guy's said, investing is about dealing with emotion and using your investing skills over a long period of time.

If you can learn how people think and how people hear your message, you will be far more successful as an investor than just focusing on the investing aspects. More importantly, having those two tools will accelerate anything you do in your life. Working in finance and earning money by providing investment advice is more about understanding people and gaining trust. Without the ability to communicate and help others deal with their emotions, you will only have the analytical aspects of investing without the important soft skills.

Best of Luck!

Dan recommends the following next steps:

https://www.youtube.com/watch?v=1Os1C000qxY
Saved!
https://www.youtube.com/watch?v=oytgLEwt3PY
Saved!

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David’s Answer

Hi Jordan,

Matthew has made some very good points. Heed his advice. Especially this:

"Investing and trading is a life long process and learning experience. Becoming a great investor is more about self control. Most people trade on emotion. Understanding yourself is a key part of this process"

I would add that it is important to put together a plan. Here are some questions I would ask (in no particular order):

What are your current interests now?
What are you doing to help you reach your goal?
There are many different financial careers and investing. For example, do you want to be an investment banker? Do you want to trade stocks and bonds? What resources are available to you to learn?
Are you interested in going to college? If so, what would you like to major in?
Do you posses an analytical mind?
Have you considered getting your MBA in Finance? I'm not so sure that it is necessary for the daily job functions but will certainly help you in the job application process.
Do you like to read? There are many books/websites that have information on how to trade.
Are you interested in technical analysis (chart reading) or fundamental analysis (determining a stock's intrinsic value)?
Do you have a mentor? Someone who can teach you his or her investing strategy/approach?


Resources:
www.barrons.com
www.investopedia.com

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Hristo’s Answer

Hi Jordyn,

I believe ‘stocks’ in term of investing on the stock market.

It is really easy to start but difficult to perform in reality.

First, you need some savings (make sure you start with really small lump sum which you can afford to set aside for as little as 3-5 years). Then you should open a brokerage account in some of the trustworthy brokers like Interactive Brokers, E*Trade, TD Ameritrade.

Then, you should build your own philosophy/strategy. You would need to read a few books. You can start with everything related to Warren Buffett, but I would advise you to check this one, too:

https://www.amazon.com/Investing-Growth-companies-anthology-investment-ebook/dp/B08L3W9KFZ/ref=cm_cr_arp_d_product_top?ie=UTF8

It is great summary of a sound investment philosophy.

Lastly and most difficult – you need patience and basically do nothing. Once you find the great companies you are sure will expand their business results in next 3-5 years, just sit and wait for the business to grow earnings.

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Steve’s Answer

I would suggest you decide how much money you can afford to be without, as once you get into the stock market your value can go down, stay the same or increase. Set up an account with TD Ameritrade or Fidelity or one of your choosing after performing research on each firm. Speak to a investment mentor, or a subject matter expert in this area. Start small with your stock buys and sells and be sure to perform research on each firm or fund that you invest in. Take your time and learn from your wins and losses. Try to buy and hold for a longer term, once you're completed your research. Consider funds like FXAIX for example which is tied to the S&P 500 index.

Always be wary, and stay on top of your investments performance. Good luck in your journey!

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Jonathan’s Answer

You really don't need much to start investing in stocks, you can start with just a $1 and a stock-trading app such as Robinhood, Fidelity, etc. The short gains with come from trading stocks frequently. However, I would suggest investing for the long-term, buying and selling daily could be very risky and time consuming, unless you're interesting in going in to a career field like a stock broker. I would suggest opening up your own IRA, contributing to your 401k if offered by employer, and after you sufficiently contribute to both of those you can begin to look into starting your own stock portfolio where you invest in individual stocks versus large mutual funds or employer managed portfolios like a 401k.

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Simeon’s Answer

For stocks related information, I'd recommend seeking out reputable financial videos on Youtube. I recommend Two Cents; it's a channel produced by two financial advisors and is a part of PBS public programming. I picked up most of my knowledge of stocks from YouTube. In general, the key to stocks is buying a diversity of proven stocks. An easy way to do this is to purchase an ETF, which is a bundle of safe, proven stocks. There is still a fee to pay, but it's lower than if you had your money processed by an investor on your behalf. Technically, the earlier the better it is for investing because of the time value of money, but its important that you always have cash to meet your immediate needs and in times of emergency. Make sure that you don't put your rainy day fund into stock investments.

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