The stock market. You hear about it all the time on the news. Your grandparents don’t shut up about it. The images of Jordan Belfort on his yacht cruising around the Atlantic Ocean, the extravagant parties and glamorous lifestyle, pop right into your head.
The stock market is filled with possibilities to achieve financial success, but that success does not occur immediately. Investing is no walk in the park, but the earlier you begin, the more likely you are to achieve financial freedom.
Let's dive into how to open an investing account, so you can begin your journey as an investor today.
To open an investing account you need to have information relating to self identification. You must be at least 18 years of age to open your personal investing account, but there are also ways to open a custodial account if you are a minor. The information you typically need to provide includes your social security number, date of birth, an address, telephone number, email address, current occupation, and employment status. It is required under federal law to provide your social security number. Once you have all this information, you are able to begin your investing journey.
Being able to invest your money has never been easier in 2022. Whether it be large sums of money or pocket change, you are able to invest in companies that you believe in. Here are some strategies to help you begin your investing journey today.
Beginning your investing journey may be an overwhelming process. With an almost endless amount of companies that you desire to invest in, it may be hard to narrow it down to a select few. But there’s no need to worry. Whether it be a fraction of a share or an abundance of shares, investing in index funds is a great way to begin your investing journey. Index funds are mutual funds or exchange traded funds that hold large, popular companies, and seek to track the returns of major market indices. The most notable index is the Standard and Poor’s 500, which tracks 500 of the United States largest companies (INDEXSP: .INX). An index fund that tracks the Standard and Poor’s 500 can be found under ticker symbol “SPY”. Investing in Index Funds are typically safer investments than choosing companies to invest in, since they tend to be less volatile and offer diversification.
Is there a certain brand of clothes you wear and love? A certain video game creator whose games you purchase annually? There’s a possibility that the company you love and support is listed on the stock market. If there are certain products that you use constantly and spend your hard earned money on, investing in those companies can be a mutually beneficial relationship. By investing in companies you support, you are able to help those companies grow. When you purchase products from particular companies it increases their revenue. Every few months, public companies are required to release an earnings report, a report that produces the financials for a company and gives an outlook to a company’s future plans. When a company receives a lot of revenue, it increases the company’s attractiveness to investors. By investing in companies you support, you are able to support the companies you love while watching your portfolio grow.
The news is a tool that all investors use. Whether it be something as minute as gas prices going down two cents, or the emergence of a global catastrophe, the news being released undoubtedly has an influence on the financial markets. If you notice a company constantly being spoken about on news stations in a positive manner, odds are they are improving and becoming more attractive to investors. On the other hand, if a company is being criticized across a variety of news networks, it may not be a great time to invest in that particular company. Staying up to date on the news can help you become a better investor.
The stock market is a great tool to help you achieve your financial goals. Being an investor is no easy task. The longer you are invested in the market, the higher the possibility you will achieve financial freedom. Begin your journey as an investor on Alinea today, and move towards achieving your financial goals!
The Content is for informational purposes only, you should not consider any such information or other material as investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by Alinea Invest or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction. When investing your capital is at risk.