How To Invest $1000 In The Stock Market – Stock Market For Beginners

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Here’s how to invest $1000 in the stock market. A simple guide on investing your first 1000 dollars as a beginner to the stock market. First you want to make sure you don’t have any debt before investing 1k in stocks or anything else. Any debt means you might have to sell a stock too soon which means losing money in the stock market. Using a free brokerage like Robinhood means you can buy more stocks with that $1000. Blue chip companies are a good idea as a first stock if you’re a beginner to trading stocks, meaning the biggest companies. Your first stock purchase should be in a known company like Facebook stock, Google stock, Amazon stock, or Apple stock. An index fund like the S&P500 is also a great first stock for your 1000 dollars. An index fund is the perfect safe stock for stock market beginners, recommended by Warren Buffett. After buying your first stock, do research on that stock, watch for dividends and growth. Learn from this stock market experience as a beginner because it’s the most valuable thing in your investment life. Next you want to do research on the stock you bought, read their income statement and read the news about the company. Investing in risky stocks like AMD stock, Tesla stock, or Blackberry stock also works if you want the experience. As a stock market beginner it’s not a bad idea to risk a bit of money because it’s a low amount right now. Even with risky stocks, buy one that you know and trust. Maybe you use AMD’s CPUs, then try buying that as your first risky stock in the stock market. This thousand dollars is a great start to your investing life, but make sure to keep your stock for the long term and reinvest the dividends. With compounding you can double your money and even make a million dollars over time by adding more money in your account. You can also invest in yourself and earn more of a return than the stock market. With $1000 you can start a six figure business like a Youtube channel, or a Twitch stream, or even a website. You can invest in yourself if you believe you have the drive and work ethic to start a great business.

9 COMMENTS

  1. The downside to using RobinHood, at the moment, is that it does not offer trading in foreign/otc markets, options, bonds, futures, forex and several other things. It also does not have depth to its platform….very basic stuff. So the trade-off for not paying commission is limiting the stocks to buy, hold, and sell later…..literally in that order.

    TDAmeritrade has the TOS platform, gives you a number of free trades when you sign up, charges only $8 per trade afterward and $0 if it is an option purchase of 0.05 or less. I do not work for them nor paid to sponsor them, but I have used their trading for years. I have tried others, like optionshouse, scott, and etrade…..they all pretty much suck, in my opinion.

    As for an idea of what to do with $1,000…..that's not much, but you can buy 12 shares of WMT with re-investment at $0 plan and gain 2.5% per year, plus growth/splits. The companies listed in the video (googl/goog, appl, fb, amzn) are direct stock speculation, so as a beginner investor, they don't really do anything for you (you can't sell options for $1,000 in these companies, so there's no money to be made unless you are gambling the stock will keep climbing).

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