How I Started Investing In The Stock Market

I remember when I first got into the world
of the stock market, I started with penny stocks, stocks that usually cost a few dollars. I was so excited that I would read about every
company, analyze its financial statements, look at the recent news and try to pick the
right company to invest so that the stock price rises and I would sell it to make a
profit. I was inspired by the likes of Warren Buffett. I mean this guy became one of the richest
people in the world By picking the right stocks and I thought I should give it a shot. I didn’t bet all my money because I was
inexperienced and I wasn’t ready to lose the money that I hardly worked to earn. Nevertheless, I kept going, but
After a few weeks of actively watching the stock market. I hated it. because it takes days if not weeks just to
find the right company and even then you might pick the wrong one. You cant invest in every company unless your
father will give you a small loan of a million dollar and you won’t bother losing it. Every company is trying its best to look like
its doing great so that you invest in them but they might be bleeding cash on the other
side that you might not realize. when the stock price goes down right in front
of your eyes after you purchased it, you get emotional, it’s not easy to look at the chart
and enjoy losing money. You might not be able to control your emotions
and would sell it at a loss. But that’s the nature of the stock market. If you are an entrepreneur or you have a day
job. You simply won’t have the time and energy
to actively invest in the stock market, you don’t want to simply throw your money without
being confident that you will make more money at the end of the day or at least won’t
lose what you have invested. So, I was about to leave this mysterious world
of the stock market but luckily I came across index funds. An index fund is the best option for most
people. Its passive income where you do not have to
do anything but enjoy watching how your money grows. When you invest in a single company, the risk
is too high because if this company goes down, you lose all of your money, but what happens
if you invest in 100 companies, for example, chances that they all will go down are low. In fact one of them will go down, few others
will definitely go up. ANd that’s what index funds are for, they
invest in every company in the market. when you invest in an index fund, let’s say
in S&P500, you are investing in the top 500 publicly traded companies in the US. It’s like buying a share of the American economy. No matter how many companies will go down,
most of them, in general, are going to grow. Unless the entire economy crashes as it happened
in 2008. And the great part about it is that there
are index funds in every market. But I prefer to stick to SP500. I have more faith in the American economy
than any other. Now the main question is, how profitable are
index funds. In 2017, S&P500’s return was 19.7% which
is incredible but a year after that, it was negative 6.2%, you would be better off if
you haven’t invested that year. However, if you look at the bigger picture,
over a long period of time, the trend is upward. Over the past 90 years, the average return
was almost 10 percent (9.8). If you take into the account inflation, that
would be 7 to 8 percent. Still not bad! if you would have invested 10K dollars in
SP500 in 1942, it would worth today over 51 million dollars. I am not sure why I am telling you this because
You probably weren’t even born at that but that’s a fun fact to know. I will leave a link in the description to
a calculator that would tell you how much you will make if you invest a thousand bucks
every month for over 20 years for example. Before you start investing, I would highly
suggest you to learn the basics of the stock market. Even if you are investing in an index fund,
You should at least have an idea of how the market works. You can go ahead and read books or articles
on this matter or you can save your time and watch this short animated course by business
casual on Skillshare. I have watched this course and its one of
the best courses on skillshare about the stock market. and the best part about it is that
the first 200 of you who will use the link in the description will get the course for
free and 2-month skillshare premium subscription. Hope this video was helpful, thanks guys for
watching and I will see you in the next one.

48 Replies to “How I Started Investing In The Stock Market

  1. Invest inly when you have excessive amount of money laying around and you have half a years savings for a rainy day.

  2. Here in India we call it "mutual funds" it's similar to "index fund". It's a great option for investment… M investing my training salary that I get into them..and learning the share Market from my seniors..
    And here mutual funds or index funds are giving a CAGR more than 28.8% in 5 years !! That's hugeee only if u knw 😉

  3. It is better to use the option of stock investment only as an income source by investing lots of money (from your business), not as a wealth creation tool.

  4. I really like your videos and the new model with your cartoon, but i find a little creepy the way its mouth moves..
    idk i really like the CodeBullet cartoon maybe that style wolud work our for you.

  5. Honestly, after spending some time in the stock market, I still feel like it's still quite a bit of luck and buying a stock when it's low and selling when it's high.

    I made quite some money on it without even bothering looking at the "financial reports" and extensively studying the markets.

  6. How you make animated videos. Using After Effects? Do you create your own characters using Illustrator?

  7. You HAVE to make a budget for investing. If you only invest what’s left over there will never be enough. Budget to put aside a set amount for investing. I have a video on this coming next week.

  8. Im just 16 but I have really started to be interested in investing, I feel like Im gonna start doing that whenever I get my first job
    Edit: Got any suggestions for a middle schooler?

  9. If I sign up for Skillshare, will it charge me the 96€ instantly anyways? Even if I cancel the plan instantly?

  10. My TOP INVESTMENTS with money and time are working on YouTube, stocks, 401k/roth ira, and Real Estate.

  11. ive been in the market for a year and ive seen the difference. i learn as i invested. and now im doing well. well actually im down with tesla but i am a long term investeor so ill be ok

  12. My goal is to invest 20% or more of my income and consistently beat the major indexes over a prolonged period—for maximum profit.

  13. You're talking about retail investors! How about developing your financial IQ and becoming professional investor.🙌

  14. My story also similar, I understood that I alone can't consume all the data and figure out things on the fly. I changed my way of investing.

  15. Nice vid?but we need like these vid s only?but skill share won't give free courses no for helping?we don't know stock markets completely?????.who helps?

  16. Love your videos bro, great content and nice animation.
    What is the best software to do explainer videos. Can you suggest any.
    I also want to start a YouTube channel(explainer videos about how to earn money through online.

  17. Why not to make a video talking about positive thinking and it,s affect on acadimic grades and the hall life we live .

    # and thank you for your hard word you help us alot and we appreciate that.😊

  18. $10K in 1942 is equal to $150K in today's money! And the average income back them was 1.8K per year…Good luck with trying save 10K in 1942….Also the inflation was so high (10.88%) in 1942 keeping money in bank would pay you sweet 15% to 20% back in 1940s/50s/60s.

    Nice video anyway! 🙂

  19. My top investment started with investment and patience, especially when I places my first trade with pro active expert Mr Benjamin on mail

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