Written by Sarah Mitchell | Investment Specialist
Begin investing by educating yourself. Research general investing terms and principles, such as reading about stocks, bonds, mutual funds, ETFs and more. Doing this will help you understand the fundamentals of investing and familiarize yourself with strategies. Keeping up to date on market news and current events, as well as the performance of the companies you are invested in, will help you make informed decisions. Reading books and publications such as The Little Book of Common Sense Investing by John C. Bogle and Thinking, Fast and Slow by Daniel Kahneman will give you a more comprehensive understanding of investing.
Once you have the basics down, it’s time to open an online brokerage account. Make sure to compare the different services and fees that different brokers offer so you can be sure to get the best deal. Some popular brokers include ETrade, Fidelity and Charles Schwab.
Start researching different stocks and mutual funds that you are interested in investing in. Make sure to understand the performance of the company or fund as well as any risks that may be associated with the investment. Use online tools such as Yahoo! Finance and Google Finance to find market information and reviews.
Once you have done your research and are comfortable with the company and the investment, it’s time to make your purchase. Open a trading account at your online brokerage and use their trading platform to buy the stocks or mutual funds you have chosen. Most brokers offer a virtual trading account to practice investing before making your first real trade.
Monitor your investments regularly to see if your investments are performing as expected and if you need to make any changes. Keep up to date on market news and current events and adjust your investment strategy if needed. Rebalance your portfolio when needed, or when your asset allocations become out of balance.