If you’ve always wanted to start investing in stock market, but you haven’t because it looks way too complicated, then this article is definitely for you.
Indeed, professional trading is pretty technical, but when it comes to getting started investing, it’s not as hard as it looks.
I’m not a professional by any means, but I am very proud that I started trading stocks about six years ago because I’ve learned a ton of new information, and I like to share this with you guys.
How Investing In Stock Market is Easy Today
In this article, I’m covering the three reasons why investing in the stock market is not nearly as hard as it looks and trusts me from a beginners point of view you guys are going to like this article because I’m just going to talk about the basics. Let’s start talking about the stock market and why it’s not very hard to get into it.
1. Brokerages are very low
Now the first reason why it’s not very hard to start investing in the stock market is just because of the simple fact that there’s a lot of brokerages out there that don’t charge any trading fees. On top of that, they have meager minimum investments required, which is easy to get started because you don’t need much money.
If you went back even five to ten years ago, you’d notice that most of the brokerages out there were charging about twenty bucks per trade, and then they required you to have an Rs. 15000 minimum balance just to even get started.
Now the problem with that business model is that if you’re a beginner investor, you’re probably not going to be putting much cash into the market and then on top of that if you’re wasting a bunch of money on fees because you don’t have a lot to trade with then that’s just a waste of money
But in today’s world, you can start investing straight from your smartphone. The minimum required balance for a lot of these brokerages is zero so if you want to start with just a buck you could if you could find a share that cost that much but to be honest with you guys you’re probably not going to find a company that cost just a buck a share.
But you really can’t find plenty of reputable companies that are about ten bucks, so definitely keep that in mind when you’re starting investing.
2. Availability of Easy options
Now the second reason why it’s not very hard to start investing is that if you don’t want to invest in just an individual company and do all the research that’s required, you can buy groups of assets called ETFs. They’re cool these are called exchange-traded funds and what they are is they’re kind of like mutual funds where they’re just a basket of assets.
But the cool thing is that you can trade them right on the stock market just like individual companies they can hold any asset that you can think of. The cool thing about ETFs is that they force you to diversify your portfolio because you’re investing in multiple companies or multiple assets simultaneously.
For example, you could invest in vanguards S&P 500 index called vo o on the stock market, holding 500 of the top US companies right inside the ETF, so technically speaking, if you were invested in that ETF. A few companies had a bad day on the market. Then you’d have 497 other companies that could make up for those losses because of the diversified portfolio.
ETFs have their pros and cons, but I’m a big fan of them personally because you don’t have to do a ton of research to get into them, and then on top of that, they diversify your portfolio, so you don’t have as much risk.
3. Availability of lots of information on the stock market
Now the third reason why it’s not very hard to start investing in the stock market is that there are way too many resources out there to help you learn how to invest.
There are a million different books you can read out there. Still, you’ve got to keep in mind that the internet also has a ton of various articles and videos so you can learn any investing that you want to
It just takes a little bit of research on your own. There’s way too much information out there to help you start investing.
So really there’s no excuse why you can’t get started today because it’s just too easy I’ll also mention that you can even do paper trading or simulated investing which means that you can play around in the stock market just like it’s for real except you’re using fake money.
So that way you can learn a ton of different things about investing. There’s no risk for you because it’s not real money.
I use the Zerodha brokerage app because they don’t charge any trading fees. They also have paper trading, which is the simulated platform inside their app so that you can practice trading with fake money.
So if you want to get some fantastic welcome offers from Zerodha or want to check out their simulated trading, then I’ve got an affiliate link below, which means I may be compensated if you click through it.
I’ve been using Upstox for quite a while now, and I’ve been happy with them, but they also have one of the best signup bonuses out there.
The paper trading thing is just awesome, and remember when it comes to investing that you’re never going to make any money or lose any money until you sell your shares.
Investing for the long term is statistically the best approach that you can take when it comes to investing in the stock market because you’ve got to understand that there’s always going to be bad days in the market. You’ve got to be able to withstand those thinking long term.
Otherwise, you’re going to get emotional, and you’re going to sell your shares, and you’re going to lose money because you just weren’t patient.