The way we approach stocks, shares, and securities as a global community has changed significantly over the years. It wasn’t so long ago that the only way to get involved with the stock market was to be part of a big company, or trading on the behalf of a wealthy group. Over time, the advent of the internet and new forms of investment opportunity have made the environment more accessible to the masses. Today, anyone can get involved – you can even buy and trade from your smartphone.
Despite the evolution of the marketplace that many people have noticed in recent years, there’s still an overwhelming percentage of individuals who believe they need to be rich to start investing. They read stories about millionaires and business owners investing tens of thousands in cash into their portfolio every month, and assume they have to do the same. However, the reality is very different.
Getting Started
The idea that you need to have a small fortune in your savings account to start making money on an investment portfolio is outdated. With things like penny stocks to invest in for beginners, and apps which allow you to access low-cost index funds for as little as $5 per month, there’s really no limit to who can get involved. Just keep in mind you should always read up on your options before you jump in. For instance, penny stocks might seem like a great option for people without a lot of cash, but they can be quite risky for beginners. You can check out a list of potential stocks to day trade to see if they’re right for you and your budget.
It’s also worth noting you may need to do some initial research before you can find a solution suitable for your budget. For instance, while there are a bunch of great tools and apps which can help you to dive in at a low price point, some brokerage apps and tools will have a minimum cap on how much you have to spend whenever you log in. Take your time to research not only the kind of investing options you have available with your budget, but what kind of companies and services can help you get started. This could include researching options trading online. The research you do will also give you a chance to check into any fees your chosen brokerages might charge for things like allowing you to access your account online, or providing access to various forms of research.
Should You Be Investing Now?
While you don’t need to be rich to get started with stocks, you do need to be properly prepared. For instance, it’s worth thinking about how much cash you have in your emergency savings right now – and what you’re going to do if anything changes in your life suddenly which requires you to access money as quickly as possible. Paying off your debts and loans before you dive in is usually a good idea too, as the cost of things like interest on loans can usually be much higher than the money you gain back on long-term investments.
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