Do you want to get rich? The answer of course is yes. Everyone does. If investing was easy, everyone would be doing it. But let me tell you a secret: a low risk strategy is easy to put into practice, and everyone should be investing. Wealth growth is no puzzle. If you want to escape the 9-to-5 rat race, do more of what you love, and be less limited by money, the answer lies in owning businesses. The most prominent success stories of owning businesses are all the names you see in the headlines: Elon Musk, Jeff Bezos, Bill Gates. But don't be intimidated by that. There are successful business owners all around, and you can be one too. One way to do this is to start a business. Start a website design business, a YouTube channel... you can even make millions with a dog walking business (Google it!). These are all great ideas, and I'd love to expand more on the steps towards creating a business in a future post. For now, I want to focus on an easy, profitable, and educational way for you to dip your toes into owning pieces of businesses. It can be achieved easily with just a few minutes a day and your iPhone. I want to go through it in a way that is actionable for you right now, and you will own businesses from your bed in just 10 minutes.
1. Download Robinhood and Deposit Funds
There are plenty of free, zero-commission platforms to open an account on nowadays. StockTwits is another, more social platform that is similar. I just use Robinhood. The point is to get your first few dollars in an account. It can be whatever savings you are comfortable with, from $50 to $1,000 or above, and don't feel intimidated by that uneasy feeling when you're first putting your money at risk. That's normal, and necessary to overcome. Taking on risk is inherent with investing. Which leads me to...
2. Diagnose Your Appetite for Risk
Developing a strategy is really important so that you have a good understanding of all the possible outcomes that come from trading. You surely have heard of the Bitcoin craze. Crypto-currencies are traditionally risky. As many people who made 500% returns lost that much when it came crashing down. Other vehicles, such as index funds or ETFs (exchange traded funds) like the S&P500, are less risky, and can provide guaranteed returns in the long-term. I personally hand-pick stocks that I know well, and let them sit for a while. I also simultaneously and actively trade options, which are leveraged forms of stocks--meaning higher potential returns and bigger possible losses (I'll have another post dedicated to this vehicle). At the end of the day, you can't go wrong trading what you understand. If you drink Coca-Cola everyday, you might understand its allure more than the average person, and it could be worthwhile to look into. This is just an example, but you get the jist.
3. Buy Your First Stock
It's scary, but you can't make money if you don't put your money out there! Buying your first stock can be super exciting, and it feels even better when you watch that green line go up throughout the day.
4. Watch, Learn, Research, and Repeat
Making substantial gains in the stock market is very possible. I know of people than spend just 30 minutes on it a day, and can average over $100 in profit in that time. That's a whole other salary, and it is by no means out of reach. It doesn't take a special college degree to do, it just takes your interest. You will be a successful trader if you find yourself having fun, researching, and spending time on it.
5. Let Me Know If You Want Help!
OK, I know what you're thinking, and no, I'm not being scammy. Text me on my phone at the bottom of the page or contact me on Twitter -- I'd be more than happy to help you build a strategy, share my own portfolio, or guide you through my thought process. If you get a thrill from placing your first order or earning your first dollar, I'm more than confident that you will learn quickly and be well on your way to creating a new income stream. If you aren't comfortable yet, that's fine too! Initially, learning is way more important than making money, and it will even get you a better return in the long run. One way to get involved without risking real money is through paper trading. This is the process of "buying stocks" with fake money, and following along with your progress on paper. This is how I started. It allows you to get on your feet, develop your personal strategy, and hone your appetite for risk without putting real cash out there. You can do this on MarketWatch with their virtual stock market (this is what I used), or on a piece of paper at your desk. My hope is that when you try investing you'll get the same excitement that I do from it. It's a doorway to a lot of empowering possibilities with regards to personal finance.
P.S. I am not a certified financial planner! Take what I say as educational and learn more through the web and your own experiences. That's what it's all about. Have fun with it, and happy trading! Also, I'm not being paid to mention the companies I did... I actually just like them.
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