Stock Market For Beginners | FREE COURSE (2023)

Isabella, a successful online business owner, shares her knowledge about investing in the stock market. She emphasizes the simplicity of starting with small amounts and aims to make it easy for beginners by avoiding complex jargon. Isabella encourages viewers to consider investing their money instead of spending it on unnecessary things.

The first step to investing in stocks is opening a brokerage account, which allows you to buy, trade, and sell stocks. Popular brokerage accounts include Fidelity, Vanguard, Charles Schwab, Merrill Edge (personally used), and Robinhood (recommended for beginners). After choosing a brokerage account provider like Robinhood or others mentioned above, you'll sign up online or through the app and transfer funds from your bank account.

Stocks represent ownership in a company, and buying stocks means owning a share of the company. The value of stocks can fluctuate over time, allowing for potential growth or decline in investment. Long-term investments are based on belief in the company's success rather than short-term market fluctuations.

Different investment account types, such as brokerage and retirement accounts, offer varying levels of access to your money. Stocks are often associated with retirement funds but can also be traded through brokerage accounts like Robinhood. Selling stocks within one year incurs capital gains tax, while holding them long term results in lower taxes upon selling.

Index funds and ETFs are like holding a bunch of different companies in one stock, such as the S&P 500 which includes 500 traded companies. This diversification helps balance out poor performance of some companies with good performance of others, reducing risk for investors.

Dividends are an important aspect to consider when buying stocks, as they provide a passive way to generate income. By accumulating enough money in the stock market portfolio, individuals can live off dividend payments without actively working for it. Reinvesting dividends helps balance out potential stock fluctuations and contributes to long-term growth.

Learn how to buy stocks through the Robinhood app, including signing up and browsing for stocks like Tesla. Discover the option of buying fractional shares and see a step-by-step guide on making a purchase.

When I wanted to learn about stocks, my parents warned me that it's risky and could lead to losses. People in your life may discourage you from investing if they don't have knowledge or experience with stocks. My failure thoughts and others' opinions stopped me from investing back in 2017, but now I regret not starting earlier.