How to Start Investing on the Stock Market in the 2020 Crash Now

A Quick-Start Guide to Stock Market Investing

The Stock Market presents everyone with an accessible and affordable way to increase their wealth. Or, as most investors like to call it — ways to use your money to make more money. Over the years, I’ve had the chance to experience this for myself.

Hello everyone, and welcome back to my investment series. I’m your host — Antoaneta, and today, we’ll be talking about the Stock Market in 2020. I took my first financial course in early 2015 when I became interested in trading. By 2017, however, I came to realise that this isn’t the thing for me — it was far too stressful, and it just wasn’t clicking with my personality. But I didn’t want to give up. I was still very passionate about finance, and I decided to try something else.

This was when I got into the Stock Market, and I’ve been an involved Stock Market investor ever since. I’ve received many questions, both from aspiring investors and from already established financial enthusiasts, with a couple of successful ventures under their belt. In all honesty, putting this piece together is long overdue, but I was busy with another, finance-related project, that I’ll tell you about later (stay tuned!).

But now, I don’t think that I can delay it any longer, especially given the COVID-19 situation and the current state of the market. A lot of people are worried about their financial stability for the upcoming months (or even years), and many more are looking at the Stock Market as a way to secure their “smooth sailing”. The financial questions that I’m getting are also coming in with increased frequency and intensity, and I believe that it’s about time I published this.

We’ll look at the following points:

Before we begin, I’d like to just throw in a quick Disclaimer here:

Please keep in mind that, as with all other information on my website, this article is based upon my personal experience and research. I am by no means a certified expert or your personal financial advisor. I would highly advise you to do your own research and consult with a certified professional before committing to serious investments, or other major, life-altering decisions.

And now, with all of this out of the way, let’s dive right in!

Stock Market Basics — What is a Stock

If you’re absolutely new, this is probably the first thing that you’ll need to understand, before you get drowned in technical babble.

In plain and simple English, a Stock is a piece of a company. When you buy stock from a company, you’re essentially purchasing a piece, a share of that company. Each public company can list a certain percentage of its shares on the market, and investors can buy them. If you purchase a lot of stocks in a given company, you can find yourself owning a non-insignificant percentage of that business. Some companies will invite significant shareholders to meetings and conferences, and, depending on the circumstances, this might give them a voice in the future of the business.

How to Invest: Logic vs Emotion

Your investment decisions should always be based on logic, throughout research and facts. Never invest on a whim, or when influenced by emotions. Always do your research!

While this is mostly directed at new and aspiring investors, it’s something that all of us, beginners and veterans alike, need to be careful with. Do not give in to hype, panic, influencers or marketing tactics. Always be calm and collected.

The Investment Strategies

Investors make use of various Investment Strategies to plan out their market interactions. The most popular ways are:

How to Buy From The Stock Market

Personally, I use

Passive and Active Investing

Passive investing is excellent if you’re working on a tight schedule. If you only have five or six hours per week to spend on Investing, then passive is the way to go. Personally, I find that passive investing is less stressful, and I enjoy the fact that it’s focused on long-term investments, primarily due to time constraints.

Active investing is for those with a lot of time on their hands. If you enjoy the intricacies of the financial market, then active investing might be a great past-time activity for you. With more spent on the market, you’ll also have more opportunities to learn new things and get up to speed faster.

Stock Research

If you want to be successful on the Stock Market, doing your research is absolutely vital. No matter which strategy you choose, you can only benefit from knowing more about the market and the companies that you work with.

Quantitative and Qualitative Research

Most people usually spend the majority of their time on quantitative research (looking at the numbers), and about 20% on qualitative research (looking at the “quality” of the business).

Where to find information

Annual and Quarterly Reports

Companies will publish reports, covering the numbers from the last period, with annual reports covering an entire year, and quarterly reports, focusing on the last quarter. These reports will also contain the company’s plans, hopes and projections for the future, laid out in detail. A word of caution here: These reports are published by the companies and aimed at potential investors. Expect things to be at least somewhat focused around presenting the company in a good light. After all, they are publishing this in the hopes that readers will invest in them.

Ratios and Metrics

The ratios and metrics will help you discern the stable companies from the volatile ones. They are yet another crucial tool that you’ll need to master in your investment journey.

How to read financial Statements

If you’d like to understand financial statements and their significance better, I’d highly advise you to have a look at some accounting materials — a basic course or a short book will do.

How much should a beginner invest

When you’re a beginner, I’d highly advise you to start small. Yes, just like any other change in your life, your first steps in the world of Stock Market Investing should be taken slow. There is nothing to rush for, the Stock Market has existed for over 400 years, and it will continue to exist long after we’re done with it.

So, don’t rush. Don’t pour all of your savings into your very first investment. Instead, I’d advise you to keep saving money and get into the investing game by using about 10% to 15% of the funds that you’ve prepared for it. This way, even if you don’t make the best choices at first, you’ll be able to recover and keep working at it.

What comes next?

As always, I’ll leave a bunch of useful articles and videos, along with my favourite books in the resource section down below. But, if you’d like a more personalised approach, I’ve got something special for you! Over the last few months, I’ve been working on an investing course, designed to help beginners take their first steps in the Stock Market. It features a few modules, packed full of helpful and beginner-friendly content. For more information about the course, please refer to the small form on the right to subscribe to my weekly newsletters and stay tuned for updates.

And would you look at that — it seems like we’re all out of space for today! And while I do realise this article is a tad longer than my usual posts, I believe that it’s well worth the read. As a matter of fact, I was planning on posting a much longer piece — there is plenty to talk about when it comes to Stock Market Investing. But this should be enough to help you get started in the wonderful world of finance.

If you enjoyed this article, and you’d like to learn more about the Stock Market, investing, financial independence, or success in general, have a look at the resource section down below.

As always, if you found this article useful, then please like it on Social Media and share it with your friends. And, if you have any questions, ideas or experiences, please let me know in the comment section down below — I always love hearing from you! You can also reach me via email, or on Social Media.

Thank you all for reading, and until next time:

Stay green and motivated!

© Lifestyle Tips by Antoaneta

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