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Good day subscribers thank you so much for joining me today i am jeremy and this is a financial education channel in today we’re talking about stock market for beginners tips so basically if i was having lunch with a friend and that friend said hey jeremy can you give me some some tips on the stock market i would give them these 11 tips that i’m gonna give you guys
Today now if you’re new to the channel you may want to subscribe because i talk a ton about the stock market on this channel so you know what give this video a thumbs up if you guys do enjoy it number one tip do not get caught up in day to day stock price movements focus long-term on whatever stock you’re investing in so many times beginners in the stock market
Will focus on on what happens in that very first month as far as the stock going up or down and they’ll either get too high on confidence or they’ll get too low in they’ll be out of the stock market in no time say you invest in a stock you invest $1,000 see the stock for whatever reason over the next month it goes down 20% that’s a next thing you have 800 dollars
Invested a lot of people at that point will say you know what screw these stocks you know this is a scam i want so much money already i’m just getting out of it and getting done that happens to so many people because they get caught up in that short term stock price movements same thing is sometimes somebody invests and they get lucky and that stock moves up huge
Right after they invest in they get so high on confidence and they’re like oh i’m a genius i need to stop calling money in right away no that’s you can’t get too high on confidence so don’t ever get caught up in these these day-to-day stock price movements because they’re gonna move up and down don’t get caught up in it just focus long term and have a vision
So that goes into point number two which is don’t get emotional don’t fall in love with the stock so many times especially beginners in the stock market even some advanced investors this happens too they can fall in love with the stock and they fall look at this so much that they actually get emotional about that stock if somebody tries to say something negative
About that stock they get emotional i can get pestered like oh you know why you don’t know what you’re talking about you’re stupid that you know they get so in motion about it almost like if you were trying to attack their girlfriend or boyfriend or something you know they get very emotional because they fall in love with that stuff and they believe in us so much
And if somebody has something negative to say about it the other person is stupid and they don’t know what they’re talking about missing that guy’s so don’t ever get emotional don’t fall in love with stocks stocks are just a way to make money just a way to make your money into money don’t fall in love with them guys it’s at the end of the day it’s not technically
Your company so even if somebody was getting mad at your company just don’t get emotional about it don’t fall in love it’s just a way of making money number three invest in companies that have very strong balance sheets you want to invest in companies at a rich in cash rich in short-term investments rich in long-term investments and have as low of short-term debt
And long-term debt as possible the reason being is because you’re a beginner in the stock market and you might not know the most about companies yet and how to predict future earnings and those kinds of things so even if your companies so you can say you invest them even if they have a weak period as far as income comes as far as income goes at least they have a
Strong balance sheet so you can sleep well at night if you invest in a company it has a really weak balance sheet they i have piles and piles of debt you know and they don’t have much cash in the balance sheet if that company goes to a hard time you’re gonna have a hard time as an investor staying invested in that stock because you know that man what if they face
Bankruptcy or something they have no money coming in they have all this debt they had no cash you know you’re gonna just worry about that and it’s gonna it’s gonna weigh on your shoulders so number three just invest in companies that have very strong balance sheets and you will be okay guys number four focus on your game and not others games what does that mean
Focus on how your returns are going and not how someone else’s returns are going so many times you know people can you get caught up and oh this person got this return so therefore i stink at investing i’m not doing good or that person on tv they’re getting this return on investment i’m beating them so you know what i’m a genius don’t don’t focus on what other
People are doing as far as their returns focus on what you’re doing i was a get thirty forty percent per year for five years straight and i focused on myself i didn’t focus on what somebody’s doing on tv i didn’t focus on this person or that person and you guys shouldn’t focus on what i’ve done you just because i’ve gotten those types of returns in the past you
Shouldn’t say oh i need to get thirty forty percent no not absolutely not the name of the game is to getting try to do better than the stock market does which the stock market on average goes up around eight percent per year and focus on minimizing losses that’s the name of the game focus on your game like this focus on your game guys number five invest only in
Companies that you actually fully understand if you’re investing in a company that you don’t fully comprehend that’s a big mistake guys because how are you supposed to know where their business is going if you don’t even fully understand it how are you supposed to know you know how are you supposed to have an idea you’ve got to fully be under able to understand
That company understand their financials and all those sorts of things so then you can have success because if you’re just if you’re just throwing money out of stock that you don’t fully understand then that’s what you’re doing you’re just throwing money you’re basically gambling so i stay in my circle you know i understand retail really well i understand electronics
Really well i understand you know some service industries very well i don’t understand as well some commodities like companies you know that coal companies a lot of oil and gas companies i don’t really mess with because i don’t really know where the prices commodities are going and generally speaking i don’t really invest in banks very often i don’t really invest in
Car manufacturers ever so those are some companies that i don’t quite understand as well so i you know it i just stay away from those guys i just stay away from those they’re harder to read as far as their financials go for me it’s not the ones you know maybe you understand those ones and you can invest in them but you just want to stay in your circle of competence
Guys understand the company fully and then you can go ahead and put your money in it next one up number six invest slowly invest slowly so many beginners in the stock market they put so much money in right off the bat they just pour money in they’re like okay you know what i’ve been researching stocks for three weeks now i’ve been watching all jeremy’s videos
And i’ve been researching all these external website stuff i understand let me just follow all my savings into the you know these stocks right now no take your time invest slowly you know put it put if say you got ten thousand dollars you want to invest over time put a thousand bucks in at first and invest it and then a few months go by then put another thousand
And a few months go by and if you’re still feeling confident what i’m you like investing and what that then go ahead and put another two thousand and until maybe over the course of a year then finally you have that full ten thousand dollars actually invest in the market but don’t rush out there and just throw money at a stock because you’re still in learning game
Guys if you’ve been learning for three weeks or even three months let’s say you’re still very much a beginner in the stock market you know it takes you really two three four years to really fully understand everything that’s going on in the markets understanding companies and i’ve researched you know a backlog of companies number seven start with buying one stock
Start with buying one stocking you say jeremy but these preach diversification when you’re learning about the stock market you know be invested in you know five ten stocks or whatever when you’re starting out guys just start with one stock the reason being is because one you’re only investing a small portion of your money that you could be investing in that stock
That’s the reason number one reason number two is so that you can just focus on that one company pay attention to it pay attention to its earnings pay attention of the the price movements over the months and whatnot in that stock and just take it all in while he’s just focusing on that one stock you can still research other stocks in the meantime but just actually
Be investing that one stock once three months six months go by however much you feel comfortable then you can go ahead and follow some more money in like we talked about and then go ahead and buy a second stock that you like a lot and then you can start adding a portfolio and maybe buy you know a year and a half in the market then you have a portfolio of 3 5 10
Stocks whatever you feel comfortable with me personally i usually never invest in more than five stocks usually it’s around three stocks most of the time so but it’s up to you whatever you feel comfortable with if you like seven eight companies invest in 78 companies over time but start with just one and then add another and then add another gothe like that guys
Number eight remember you’re buying a business and not a stock ticker symbol this is an area where so many people get confused guys at the end of the day you’re buying an underlying business you’re not just buying a stock ticker symbol so many people get confused you know that’s why it’s so important to look at the business and be a smart business person because
If you’re a smart business person it’s gonna help you make great judgment calls as far as you know if a company is headed in the right direction strategy wise you’re buying the underlying business when you buy a stock so many people just throw money out of stock and they think of it as like a stock ticker symbol and however much it goes up or down it’s just a
Stock ticker symbol no you’re buying the underlying business and how that business performs is probably going to be how that stock performs sometimes you know the stock can go either way you know sometimes the business can be doing really well and the stock will struggle and sometimes this is going to be doing bad and somehow the stock goes up for various reasons
But most of the time the majority of the time that stock will move depending on how the underlying business is doing depending on how the profits are going going depending on how the growth is going all those sorts of things guys so remember you’re buying an underlying business number nine listen to yourself first and foremost you know i talked on this channel a
Lot i break down stocks every single week i break down you know facebook netflix whatever stock i break down a stock every single week you might be invest in that stock you might be looking at that just because i say i’m not buying it personally that doesn’t mean it’s not a buy for you same thing if you watched you know jim cramer on cnbc or you watched some guy on
Bloomberg or whatever channel just because we don’t believe in a stock doesn’t mean you shouldn’t invest in it a lot of my best investments ever have been stock said everybody said don’t invest in nasty stay away from that stock no no that starts horrible don’t buy that one and haven’t made a lot of money in buying some stocks that everybody else pushed away and
I got in before everybody else and then everybody was like oh that’s not so bad after all and the money started piling in so in think about yourself first and foremost and i’ve been so many stocks i could tell you about that i didn’t i wouldn’t invest in you know amazon for years netflix for years tesla somebody to super-high pease and maybe not the best balance
Sheets i didn’t want to invest in them just because they were high-speed stocks they weren’t value in my opinion whatsoever so but they still performed amazing so just because i say i wouldn’t invest on stock doesn’t mean you shouldn’t let us talk just same way with anybody on tv you watch or what not believe in yourself first and foremost it’s your decision at
The end of the day you decide your fate guys believe in yourself next up number 10 don’t mess with margin ever since you’re probably a beginner and you’re watching this you probably don’t even know what margin is yet you will at some point margin is an account you can make in a brokerage where you can invest $2 for every $1 you have so you can basically take out
A loan take out debt to invest in stocks to try to make a higher percent of return i thought i would be successful at this because i was making so much money from stocks for so many years in a row then i was like you know what i want even more money i want margin money because now i can invest $2 for every $1 instead of making or you know let’s say i was making
$50,000 a year from stocks now i can make $100,000 a year from stocks you know if i was making $100,000 from stocks now i can make 200,000 because i got $2 for every $1 head before problem with margin is you will end up getting greedy for more than likely you will start investing maxing out that amount of margin and then sometimes in a short term those stocks can
Move down like we talked about and when those stocks move down you’re forced with a margin call and you need a need to pour money into that stock or you need to sell off shares of that stock so that’s what happened to me now you know short-term loan sudden my company would struggle and next thing you know i have to sell a bunch of shares to cover that margin call
And then on top of that your pain generally between a six and seven percent interest rate so you’re paying thousands and thousands of dollars of interest guys so don’t ever mess around with margin you know warren buffett has a great saying about margin if you’re smart you don’t need it and if you’re dumb you have no reason to use it and i don’t know which category
I fell into maybe i was a dumb category but i had no reason to use it he screwed me up i lost so much money the year i used it which was 2015 which was technically last year i lost so much money and then ipn over $5,000 in interest so i lost a ton of money because i was sort of focusing short-term doing short-term trades on this margin i lost a ton of money because
I was doing on interest so don’t ever mess around with margin guys take it from me i oh i knew not to mess with margin and then i just got greedy and i started messing with it and learn from me guys it’s not a smart thing no matter how good of investor you are it’s very hard to manage margin i would not mess with it at all so i hope i made myself very clear on
That last one step number 11 tip number 11 guys the last one to be a successful investor it takes a lot of work you must understand it’s a lot of work guys it’s a lot of damn work you’re gonna research so many companies these companies your research they may not even be the one so you need to keep researching and keep researching and read through the financials
And read through the balance sheet and you’re gonna understand the business model and comprehending all those kinds of things guys you’ve gotta track that stuff before you invest in see how it’s doing you it’s a lot of work that goes into it so if you think it’s just gonna be easy just to make 20% a year or fifteen percent or ten percent it’s not if you just want
To make what the market goes up or down each year you can just put in an index fund or something like that some type of indicee that’s fine yours gonna do as well or bad as a market but if you want to be a stock picker like i am and like a lot of other people are it takes a lot of work you better be willing to research for hours and hours and hours if i could tell
You how many hours i’ve spent researching stocks over the course of my eight years of investing i would be in the thousands of years if not the tens of thousands of years guys it is absolutely amazing how much work is but it really pays off if you can make fifteen twenty percent a year so you make thirty percent a year guys it will really pay off for you it will
Absolutely because you’re gonna be making your money into a lot more money and then hopefully as long as you minimize losses when you do take losses you’ll be able to retire hopefully uh earlier in life and just live a general better lifestyle i hope you guys enjoyed these eleven tips today if you’re new to the channel you haven’t subscribed you may want to i talked
About personal finance on the channel i’m an entrepreneur i give entrepreneur tips on the channel and we talk to stock market every single week just like we did let me in the comment section if this video helped you guys today if it did leave a thumbs up on the video thank you for watching guys and have a great day
Transcribed from video
Stock Market for Beginners Tips! – Investing in Stocks for Beginners Tips! By Financial Education