Hey guys, so in this video, I'm going to be giving you a full PowerPoint presentation and what I consider to be the ultimate guide specifically for teenagers on how to invest into socks. Now here's a quick overview of this video. First, we're gonna have 11 full chapters with the first chapter being an introduction about who I am, what my background is. We're going to go into the basics of the stock market.

following that, then we have chapter three stock types and terminology. I'm going to go over what to do before investing. Chapter five is how you can actually get started. Chapter six is gonna be where it gets a little fun.

You guys are also going to have access to get a bunch of free stocks which I think are great because they can be worth up to ten twenty thirty thousand dollars if you get really lucky. After that, we're gonna have a brokerage, walkthrough, and tutorial. We're also going to go over how to research stocks, We're going to go over building your stock portfolio and we're gonna go over taxes. A lot of people don't talk about taxes, they don't really know too much about it.

and I know as a beginner that stuff isn't even on your mind. But we're gonna go over pretty much the essential things that you need to know. and we're also going to go over the tips for successful investing and my favorite beginner resources that I wish I knew back when I was 18 in getting started. And by the way, if you're not 18, if you're younger than that, this video is still going to be relevant because there are ways that you can still invest into the stock market even before you turn the age of 18.

So guys, if you don't know me, my name is Brian I Started this YouTube Channel four to five years ago now I never thought I'd be a YouTuber but here I am teaching millions of people on how to get their credit cards right, how to invest, and learning more about personal finance, entrepreneurship, and just how to make money. Now back when I was still in school, I was not your traditional kid who just you know went to school, got good grades you know, went to college. It was actually the exact opposite of that story I went to school I ended up getting kicked out for getting into a lot of fights as a teenager I Always thought I was actually pretty dumb in school just because I never got good grades I had a hard time focusing and just listening and I always just thought that the things I was learning was it was just of no use. It was like chemistry algebra.

Why? why do I need to learn statistics to this day Guys: I have still not used cosine or any one of those things that I knew even back then would be a waste time. Well, fast forward a little bit later. I Ended up applying for a few of my favorite colleges I Ended up getting denied at pretty much all of them I ended up having two scholarship offers because I played rugby back then I still play rugby now so it's been about 10 years since I played that sport. but I knew that was a risk that I didn't really want to take just because even by then I'd already got shoulder surgery I tore my achilles once.

My main goal at that time was to provide Financial stability for myself and my parents because I actually grew up really, really poor fast forward a little bit after that I turned down those scholarship opportunities I actually ended up going to Community College like 10 minutes away from my house so it's called Montgomery College here in Rockville Maryland and that's where I actually learned that I did not ever want to go through the traditional system of you know, going to college, then transferring over to four year and then you know, working in a cubicle working in nine to five and I decided I want to start my own business. So at that time I was working a few other jobs. One of those jobs was working with my dad doing hardwood floors. very labor intensive I would work like eight to nine hours straight.

Another job that I would work on part-time was working with kids who had autism I learned some of the most crucial life lessons that I still carry with me now and that's just being grateful of every single thing that I have to this day. Following that, I decided to listen to some podcasts, educate myself, read some books, and I ended up eventually now present day you know I started a multi-million dollar company I have a few employees underneath my belt I had 10 to 20 employees at one point during the bowl Market I created a YouTube channel that you guys are watching me here on I was featured on a Netflix documentary at 1.2 I have multiple six-figure investment portfolios I ended up investing a lot of money. it was less than half a million dollars at one point I ended up losing a lot of money I've also made a lot of money and this whole guide is just pretty much going to be like your full walkthrough And all the lessons that I've had and the reason why I'm first of all, excited to make this video is because there isn't going to be a video like this that you're going to find on YouTube with this much experience that I'm going to walk you through. we spent a lot of time working on this whole presentation in order for you guys to get the best amount of knowledge possible so that you have a full, deeper understanding on how to get started.

If you guys can relate with me in any way of not coming from a family that has money or generational wealth and you're able To see what I've been able to do, there is a future where you can also make money for yourself and you can also provide for your loved ones. So why am I making this course? Well, first of all, I Want to teach you guys what the schools are not going to teach you I also want to help you get rich in the form of investing I Want to make sure that you have a full understanding of stocks and how the stock market works. I Also want to make sure that you are able to make good investment decisions because even though I've been able to make a significant amount like I said I lost a lot and I've seen a lot of people lose a lot too because we went from a crazy bull market I Don't know if you guys are around for the whole AMC GameStop stuff, but my channel is actually one of the main channels leading those live streams at that time. so if you ever looked up AMC live stream on YouTube two three years ago during the pandemic while everyone was still messed up inside their houses, you might have stumbled across my channel back then.

and this is just going to be a follow-up on making sure that you guys don't fall prey to any meme stocks because we are going to have even more opportunities like the ones we saw a few years back. and I want to make sure that you guys have all the information prepared kind of like your armor to make sure that you are faced with the best tools in case of any type of volatility coming in the future. Where markets go up and you don't know when to sell or you do will end up timing the market and a better chance. So why should you, specifically, as a teenager, be investing into the stock market? Well, there's a major advantage that every single team has in the investing world and that Advantage is your youth.

The earlier you can begin investing, the better off you're going to be and the better your portfolio is going to perform. With time on your side, you can afford to take a long-term perspective and you can ride out many different Market fluctuations and this time Horizon also allows you to invest in riskier and higher growth assets to generate higher returns, whereas retirees who are much more older would probably be investing into low risk, low return assets. On top of that, if you're a teen and you start investing early, you're going to be utilizing the power of compound interest. This is pretty much the concept of where if you start earlier, you're going to be seeing even much more higher returns over time.

In some of the finance resources or books that you guys might come across, they're going to call The Compound Effect to be like the 8th or ninth wonder of the world. That's how serious it is. now. Following that, you can also make money and you can get rich, which is probably why you're watching this video in the first place.

You can get your money to work for you so you don't have to go out work a job where you're busting your butt for you know, 12 to 15 dollars an hour. If you are able to consistently invest into the market, you can find that this will replace any type of job that you might work and this could even become your full-time profession. Now By investing to the stock market at a young age, you're also going to be setting yourself up for the most amount of success. I'm 26 right now, but it even feels like just yesterday I was 21 years old.

so you guys want to make sure that you maximize that amount of time as much as possible. I Sometimes like to imagine if I began investing even more consistently at 18 years old where I could be with my portfolio. Now, by the time you get to 27 or 28, you nearly have nine to ten years of experience in investing, and most likely you can say that you know you've been in the industry for a long time to be even an expert within making significant wealth. Anytime you pursue anything or you're learning something consistently for that long period of time nearly a decade, I Would like to say that you have better chances than most who might just be entering the market.

On top of that, investing is also a great hedge against inflation if you're a teen. If you can remember a little while back, I mean I Can barely remember this too. But back then as an example, like a Chipotle burrito was like six dollars and fifty cents flat. Nowadays I'm spending like 11 to 12 dollars per burrito and this is just the effect that inflation has.

Pretty much the cost of everything goes up like an iPhone. Back in the day, it might have been three four hundred bucks, but now if you're specking it out and you're trying to get the latest version, it's going to cost you at least a thousand bucks. During the pandemic, we also had an enormous amount of money getting printed where I believe it was about a third or even two-thirds of the total money supply that got printed in just a period of a few years with more money circulating around. Okay, what the government's saying? All right, let's turn on the printer we're you know, making trillions of dollars out of thin air.

This pretty much raises the price of all of our luxury items or even everyday Goods like food, gas, and even rent or shelter. Just effectively think of your purchasing power going down by 20 over the course of a couple years. That's inflation where if you're holding cash, just a thousand dollars in your bank account, that thousand dollars is not going to be worth the same amount because the cost of everything else continues to go up by knowing how to invest, you can go ahead and beat the pace of inflation and preserve the purchasing power for yourself. Last but not least, you can also build Financial discipline.

This is huge because investing requires discipline and patience and by starting early, you can create good financial habits and develop the discipline of regular savings and investing, which I believe will have a huge ripple effect into your overall Financial being so. Why is now the best time to get started? Well, first of all, this is because you are young. if you're a teenager. The earlier you begin investing in buying assets, the quicker you're going to become rich and meet those financial goals.

Back when I wanted to learn about investing Things like this video here or the resources that you get on YouTube and courses and on online articles, it did not exist to the extent that we have now. What I love about the new developing age is just the fact that knowledge is abundant. But most importantly, it's free and it's never been cheaper to get started with investing. Even more than that, literally, some of these brokerages that we're going to talk about in this video are going to give you free stocks that can be worth 10 to even thirty thousand dollars if you get really, really lucky where they're giving you money in order to get started.

Even back before my time, Brokers used to charge a one to two percent fee per trade, but nowadays you can find several. Great Commission free investing platforms and investing has now become more accessible and democratized for a larger crowd than ever before. Now, like we just mentioned about inflation, this is destroying your bank account and your cash is losing value every single day. With the US economy recently hitting its 40-year high inflation and it looks like it's not really still slowing down, That's why interest rates are continuing to go up right now.

it's going to be the best time to start more than ever. Now before we get into any of the basics. if you're wondering, how much money can you actually make by investing to the stock market this year is going to depend on how long you're Investing For how much you invest and what you decide to invest in. If you ask, people who have been in the stock market for a while, take as an example: Warren Buffett Who has been declared as one of the most successful stock investors? He'll tell you that literally billions of dollars can be made investing now.

I Get it? Warren Buffett is a bit of an anomaly, so let's provide an answer that's a bit more realistic. And for a point of reference, we'll take the S P 500 as a historical average annual return of 10 As an example. If you're 18 years old and you invest, say, just three hundred dollars per month into the S P 500 by the time you reach your retirement age, you will have made over 3.6 million dollars off a principal investment of around 169 200. Now guys, the example that you see on your screen here with Brian being an 18 year old who's investing 300 is exactly what I'm telling you here.

That person Brian Fantastic Name by the way, would have made over 3.6 million dollars in profit. That also, consider the fact if you're not making that much money right now, one day you will be. Especially if you graduate high school. You know, graduate college, you get your job.

The median income that most people make is around 40 to even fifty thousand dollars per year. That number is actually going up just a little bit because we're seeing inflation going higher. So even if you're making 50 to 60 000 a year, say you're able to save 95 of your income. you live at home with your parents, they're still able to feed you.

You would be able to build up that principal investment of 169 000 in the matter of three to four years. That means if you're able to play your cards right, you could essentially turn that amount from just a median income salary you're making into a multi-seven figure portfolio. Now just a side note, if you want to play around with the numbers and see for yourself, you can also use the calculator that I'm going to link Down Below in the description by Nerd Wallet which will give you a prediction based on compound interest and how much you invest on what that money will amount to. So as an example, say you have an initial investment of a thousand dollars and you invest about you know, 100 hundred dollars per month.

If you give that 10 years to grow at an estimated rate I would say even 10 is fair. Go ahead, calculate that and then by 2032, that would be Thirteen thousand dollars. In 10 years, that amount would equate to 23 192. All right.

So now that we cover that, let's go over the basics of the stock market and we're going to talk about what are stocks. Why companies issue a stock? What is the actual stock market? Three ways that you can make money with stocks and then the risks of investing into the stock market. So investing in stocks is like owning a small piece of a company. When you buy a stock, you become a shareholder of that company and then you pretty much have small ownership stake in it.

Now the value of your ownership State can go up or down based on how well the company is doing. So a quick analogy on this is going to be like if you're trying to buy a slice of pizza. When you buy a slice of pizza, you own a small piece of that whole entire pizza pie. But if the pizza is really popular and more people want to buy it, then the value of that one slice that you got goes up.

Now people taste that pizza and they're like yo, this thing tastes like crud and they do not want it and they say it belongs in the garbage. Can that one slice of pizza you have the value of it would actually go down? So very like to how companies work. If you invest in a company that does well, say you know Apple continues to do well, you know you got the iPhone They keep making an upgrade and then in five years from now you got like a projector phone doesn't even look like this anymore. their value of their stock is probably going to go up.

They came out with like those you know, three thousand dollar VR headsets. If that ends up being a life-changing tool that a lot of people use. I Could see Apple continuing to go up, but say the VR headset actually flops. say it gives people a bunch of migraines.

The technology is still not there. People might deem that the company is starting to go downhill and then we could see the stock going down too because the company itself is performing more poorly. So what you need to know is that investing in stocks can be a great way to grow your wealth over time. But it also does come with risks because it's important for you to understand what company these do and what their future projected income and how they perform looks like will be.

So why do companies issue a stock? Well, companies issue stock simply to just raise money for them to scale their business by issuing stock, the company sells ownership in itself to investors in exchange for that cash. Save for this YouTube channel. it's continuing to grow. Maybe you know in two years from now, we're making 10 to 30 million dollars a year.

But say as an example right now: I Want to raise money because I want to hire out a bigger team I want to get an office? Maybe I want to grow five more YouTube channels and I know what it takes for these channels to do well. The way I can raise money is by issuing a percentage of ownership for it. So you watching this video I could say look Billy Bob Joe watching this, you can own 10 of my YouTube channel. So you know if my AdSense is fifty thousand dollars every single month, you'd be getting a check of five thousand dollars based off whatever you invest in At this current time, If a company wants to scale, they usually need to raise more money.

or simply they just want to be listed in order to to diversify their cash. This is because the company would be able to raise money without taking on debt and investors who buy the stock then become shareholders of the company. So you guys would all have ownership of company if you end up investing today into. you know Chipotle Stock Technically even if you owned a fractional share, which means less than one stock like half of a stock.

If you own that, you can technically point at that Chipotle and be like yo guys, I actually own that even though you own like point Zero Zero, Zero, Zero One percent of it. This is how the stock market works. Now, when a company issues stock, they give you two types of it, so you have common stock and preferred stock. We're going to go over that quickly, but before we do, let's talk about the broader stock market.

So what is a stock market? This is pretty much just a place where people can buy and sell tiny pieces of ownership in bigger companies. So for example, just imagine your friend. They started a lemonade stand and she needed money to buy more lemons and sugar. She might ask you and your other friend to chip in some money to help her out in exchange.

she might actually give you a little piece of her lemonade stand. So similar to the YouTube example that I gave you guys, this is pretty much how it all works. giving a company some money in exchange for a tiny piece of ownership in that company. Now people can buy and sell these little pieces of ownership on what you then call the stock market exchange.

This is pretty much a big marketplace where people can trade their ownership pieces with one another so some people might want to buy. Some people might want to sell. This is where it's going to connect buyers and sellers. Now, when you own a piece of a company, you can sometimes make money if the company does well and makes a lot of profit.

If you guys buy my YouTube channel now and it does well in two to three years and then you decide to sell in two to three years you're going to be making a profit. But say you buy into my YouTube channel today. But you know I get lazy I Don't make that many videos or my vision just didn't work out the way I predicted in two to three years I make less than what I made. Now if you decided to sell the stocks that you own within my company, you would actually lose money.

So there's three ways to make money from stocks. You have capital appreciation Capital depreciation and then dividend payments. So appreciation is when the market value of a stock over time goes up. Depreciation is when the market value of a stock goes down over time So how do you make money from that? You can actually short different stocks or you can buy puts.

So you're thinking that it's going to go down in a future time. Or you can also get paid dividends. Most investors generally just aim for number one, which is capital appreciation. Or if you are much more of a conservative investor, you're going to go for high paying dividend yield.

Stocks Dividends are really simple. It's pretty much the company. Whenever they make a profit, they're giving back those generated profits in the form of a dividend and back to its shareholders. So going back to my YouTube example, say the YouTube channel is doing super well.

Okay, we're a year into it. You guys invested into it. and as a token of appreciation for investing into me and the company's doing well, I'm going to pay you guys a dividend. so I'll pay you like a hundred dollars.

I'll send you a little check in the mail for being a part of my company. A lot of the largest companies actually do this. They pay out dividends and this is why dividend investing can be huge. Because if a company continues to do well, you can get get both capital appreciation on top of dividend payments.

By the way, if you want to learn more about dividend investing, at the end of this video, you can watch my full dividend investing presentation because that is full of information too. Now all that sounds great. But like I mentioned earlier, there are risks of investing into the stock market. This includes Market volatility, economic uncertainty, company specific risk, and then timing risk.

So for Market volatility, the definition of this is really straightforward. Now, the stock market does not just go up every single day all the time. It's inherently volatile. Meaning sometimes it goes up a lot.

Sometimes it goes down a lot if you're not able to manage your emotions properly. If it goes down a lot, you might sell then and then when it goes back up, you decide to buy back in because you have the fear of missing out. Also known as Fomo. In those instances, you would be like a majority of the people who end up actually losing money within the market.

On top of that, economic uncertainty is just the fact that the stock market is still closely tied to the overall state of the economy. So with things like inflation, interest rates, or like sessions coming up or even like a change in government policies taxes, these can all have a significant impact on how the overall stock market does. Because if the US is in a recession, chances are the stock market is not going to be performing well because it's based off of the profits that companies can make. And in a recession, companies generally don't make that much profit.

Instead, they have massive layoffs where they need a fire. all these people in order for the company to stay afloat. There are also company specific risks where if you invest in a certain stock, that company can experience financial difficulties like bad press or just not having a good product or item. So as an example, Airline stocks went down a significant amount.

They pretty much bottomed out if you look at any of the large. Airlines You'll notice that during the time it was the peak of the pandemic. and that is when we saw stocks go down. And that wasn't because the airlines themselves were you know, serving bad food or their planes were dipping down.

you know they're malfunctioning or whatever. It was simply just because of external factors that affected a company. That also ties more into timing risk because sometimes there are things that happen where you just time the market poorly and this could lead you to losing money in the short term. But also, keep in mind you only lose money in the stock market if you decide to sell it for a loss.

So when it comes to stocks, there are two primary types of stocks. We talked about this earlier, but let's go a bit more in depth so you have common and preferred with preferred stocks. Shareholders of this have a priority over a company's income meaning their paid dividends Before Common shareholders. and they also get paid out first in the case of a bankruptcy.

but you have no voting rights now. Common Stocks which is what people normally refer to as a common type. They're usually like 80 percent of all stocks and this is where you actually have voting rights. You get dividend payments that fluctuate now when it comes to Common Stocks These are last in line when it comes to company assets.

which means that if you own a common stock, you get paid out after the creditors, after the bondholders, and after preferred shareholders. I Wouldn't complicate it too much guys. I Don't know how many times I've had to actually like know? Oh okay, preferred stock, common stock. and when that comes in handy, just know a majority of stocks called Common Stocks Okay, now when it comes to different categories of stocks, there are three main primary ones.

So you have the company size which talks about the market cap of how much it's worth. You have small cap Which is less than two billion dollars. You have mid cap which is between 2 billion and 10 million dollars. You have a large cap which is above 10 billion dollars.

Then you have the company sector and Industry so you know it could be like you know Chipotle's food Apple would be technology. You have energy Healthcare Financial Services Travel They group them up in different types of Industries and then you have investment style and strategy where it could be a growth stock, a dividend stock, or a value stock. Now Growth stocks are associated with a high potential for above average growth in Revenue earnings or market share. These growth stocks are expected to undergo rapid expansion, so if someone says okay, I'm trying to buy into the top five growth stocks, they're trying to go for a higher risk, higher reward play.

Now, value stocks on the other hand, pertain to a company that trades at price is lower than their intrinsic value, which is considered to be what people would say that brand is undervalued. or you know, Chipotle right now is undervalued If you look at other investors like Warren Buffett Benjamin Graham or Charlie Munger they all have successfully employed the value investing strategy, but overall categorizing stocks can be helpful in understanding the characteristics and risks associated with different types of stocks. and it can also help you to diversify and know what kind of stocks you want to invest in. Now Ladies and gents, there are a ton of stock market key terms: I Think it's just going to go over the scope of this entire video I Want to focus on the most important ones to make sure that I respect your time.

but if you want to have access to our stock market key terms: I have a full PDF rundown of it. So this goes over like Blue Chip stocks and the importance of that and what it means and things like this that will really help you out with your investing. Journey So if you sign up, you also get access to my stock newsletter. You can check out the link Down Below in the description if you want to also follow along there.

Now for this next chapter here. let's go over what you need to do before you actually start investing through this guys. I'm going to provide you a few more resources. It's almost going to be like your homework I Hate saying homework I Got like PTSD from high school and all the moments that I just did not like homework.

but this is actually going to be good for you because we went ahead and just compiled this full PDF where you can print it out. you can write on it, but these are really important questions that you need to ask yourself to get a gauge on what kind of invest you want to be, what your goals are, what your time Horizon will be how much money you want to actually make, and this is going to line up very well with the exact steps that you need to take in order to reach those goals. As an example, back when I was in high school, I didn't want to make a million bucks because frankly, I just didn't think it was possible to ever make a million dollars in my lifetime. But right now, my goals from the stock market is to make 10 million bucks back then.

If I were to make just even ten thousand dollars, I would have been happy. I would have been able to buy, you know, like a cheap little fun little Toyota or something. or maybe like a two-door sports car. get some monthly payments on it, still have a little bit left to invest into the market things like that.

But before that we also have two investing prerequisites. So one of them is going to be to make sure that you eliminate debt and that you also have a rainy Day fund. Now these two factors are going to also depend on what your living situation is. If you're a teenager, but you're independent and your parents force you to pay for every single thing like groceries and rent, you're going to want to make sure that you have a larger rainy day fund, but if you have you know, really supporting parents, you have a roof over your head.

Maybe they even give you allowance? You might not need a rainy day fund for as long as someone who's supporting themselves. Maybe on the off chance though, something that all of you guys should always be doing is eliminate debt. So if you owe Billy Bob Joe down the road like 20 bones, just pay that off right away. Don't owe any single person any type of debt and don't ever get into things like credit card debt.

This is because usually if you have debt, you know, especially credit card debt, it's gonna be like 20 to 30 percent that you're paying an interest. And if you invest that money anyways, it's hard to beat 20 to 30 percent every single year. It all just comes down out of what can make you more money, pay off your debt, then you can get into investing. and before you do that, make sure you always have a rainy day fund.

I Would say that even if you have like a thousand dollars in your savings account that you don't touch, that's going to be a great place to hold it. Now going back into the PDF guide that I mentioned just a few minutes ago, this is going to be a 14-page PDF where it's going to ask you questions like what is your current income, how stable is it, what's your monthly expenses? you know, what are your existing assets, if you have any savings, Investments maybe a piggy bank, you know, class thing that you can break open at any time and also how much money you can actually invest per month based on your budget. Guys, this is so important for you to do, even if you're not a teenager somehow watching this video. I Highly recommend you to do something like this, even every single month so that you have a proper gauge on your own risk tolerance.

When you fill these questions out, you're going to be able to get a score. And based on that score, you're gonna be able to see how you can invest or what type of investor you might be to access that. The link is down below in the description of this video. All right.

Chapter five: How To Get Started. This is where thing things are gonna get juicy and a little bit interesting. So let's go over how to invest if you're under 18 legally. we're also going to go over which investment accounts that you should be using and what brokerages that you should also be taking advantage of If you're under the age of 18.

Generally, you'd be prohibited from opening your own brokerage account, but there is a rule so adults can open a custodial account on behalf of you at any age, allowing you to get a head start on investing. Now, custodial account just means that an adult is going to go ahead and hold and manage the investment on behalf of you typically a minor or you know you're still dependent if you're under 18. And keep in mind that even in the case of a custodial account, the adult, not the child has control of the account and the investment decisions. Now some places that offer custodial accounts are going to be Fidelity Charles Schwab which now owns TD Ameritrade Vanguard Now in the off chance that you can't find an adult that wants to open a custodial account for you or your parents are just like nah man, just wait till you're 80 teen, you don't have much money Anyways, what you can also do is open an account and engage in something called paper trading as an alternative.

Now paper trading is what it sounds like. You're trading paper that is not real dollar. So you're pretty much trading like Monopoly money Fake money that is simulated as trading practice where if you do decide to invest into the market, you're not going to risk anything because it's not real money. Now why would you do paper trading? Well this is an excellent alternative as it allows you to gain practical investing experience.

So do you think you might be one of the one percent of people that get really lucky in the market and you just somehow are able to buy and sell and just consistently win without risking anything? Well you could do that with paper trading I Wish I didn't paper trading way earlier on than investing like 500 of my own money because at that time like that was all the money that I had Say as an example, you're paper trading for many years and then you build up your own portfolio of you know a hundred thousand dollars. Plus by then you're gonna have the confidence in order to do this with real money and when you turn 18 you can open your own brokerage account and you would have developed the confidence the skills in order to pursue any Real investment opportunity. Now if you're interested in getting started with paper trading I'd Highly recommend Trading View. They have the best charting platform but also not sponsored by the way we actually use it here.

They have a friendly user interface and their paper trading features. They're simple to use. I Do have an affiliate link, so if you use my link you're going to get 15 when you purchase a subscription. but you know there are also other free tools that you can use online.

Now if you're older than 18 years old, here are all the following accounts that you should be using. So one is going to be an individual brokerage account. This is just a regular investment account. You also have retirement accounts and underneath that you have a traditional IRA a Roth IRA a solo 401k and an individual 401K.

On top of that, you also have an Education savings account and a health savings account also known as an HSA. Out of all those accounts which one would I recommend that you open well, I would say a mix of having a retirement account like a Roth IRA and a standard individual brokerage account is the way to go. Having both accounts will allow you to begin saving investing for your retirement, but also it gives you the flexibility to invest for the short-term or midterm time frame. So as an example, if you want to make money through Investments to save up for a house when you're 30 years old, you don't want to use a retirement account because early withdrawals before the age of 59 and a half may be subject to early withdrawal penalties and high taxes.

I'm going to go more into tax advantages and things like that in chapter nine, but for the most part, if you're getting started out, an individual brokerage account is completely fine. That's how I got started out and it's the fastest way you can get started today. Now the main brokerages that I use is MooMoo Weeble and Robinhood Robinhood used to be the main one, but then the whole AMC stuff and the payment to order flow stuff happen and I've been using Mumu and Weeble for the last three to four years Mumu I used recently and they've actually been great. On top of that, what MooMoo and Weeble does that Robin Hood doesn't do is that they offer you a bunch of free stocks like way more than Robin Hood has ever done.

So MooMoo At the time of filming this video, you can get up to 16 free stocks a month back. it was like 20 free stocks. The amount always fluctuates and changes. You can check out the link Down Below in the description to see what the offer today is, but depending on how much you deposit into the app and then keep it for I think it's like 30 to 60 days they're gonna then give you a bunch of free stocks and the stocks that I redeemed were all worth about 70 to 80 bucks in total.

So it was free money I ended up just keeping those stocks in there. They're worth even more money now and that's just free money that you guys can get. So it's not just MooMoo that does this, but Weeble has been doing this for a very long time and they give out fractional shares. So right now I believe it's about 12 free stocks, but the offer on their end also changes as well.

and sometimes those stocks can be worth way more than what MooMoo has to offer as well. It just depends on the time of year personally for me, I would get started with MooMoo first I would also then pick up Weeble I would deposit whatever required amount there is into it. If you can afford to do that, keep it in there. Get those stocks.

Pull it out if you find that you don't like the app for whatever reason. I've been loving it because it's on my phone, it's on my iPad it's on my computer. but from there you just pretty much made free money now MooMoo and Weeble and even Robin Hood 2. They are all insured and registered with the SEC and Finra.

so I know they got names that you probably never heard of. Okay, you don't see commercials for them on TV all the time, but they've been around for a while. They've been great. All right.

So how do you actually claim your free stocks? Well, it's very simple. All you have to do is go down below in the description of the video, open up the MooMoo app, click on it, fill out the details, download the app on your phone, and from there connect your bank account. They have this done with plate. It's super easy.

You can then go ahead and deposit any amount instantly into the app, but make sure by the way, before you even get to that stage, they're going to ask you for something called Kyc. This is know your consumer. They do this with everyone. So any brokerage you sign up with one of the laws that exists is that they need to gather more information about who's using it just because of all the people who money launder do the bad things like that.

So once you do Kyc, once you deposit a fixed amount into the app, then you can go ahead and buy and sell stocks. You can also redeem those free stocks as well. So when it comes to actually buying a stock, there are three popular order types that you need to know. This is going to be your Market order, your limit order, and a stop loss order.

Now, the market order is the simplest type of order and it means that you want to buy or sell a stock at the current market price. So an example is like you're pretty much going to the grocery store and paying whatever the price tag says on that. Apple You're trying to buy with a market order. you're going to get the stock immediately, but the price may be slightly different from when you place the order.

The difference from the price you see in the price that you get executed is called slippage. And for some small cap stocks that are low on liquidity, the slippage can be huge, so be careful with using Market orders if you trade low-cap stocks or penny stocks. Now, limit order is an instruction given to the broker. so it's like saying yo Mumu I want to buy it or sell it at this specific price.

When placing a limit order to buy, the investor specifies the maximum price that he's willing to pay for the security. And conversely, when placing a limit order to sell, the investor sets the minimum price that they're willing to accept. Okay, so for example, if a stock is currently trading at fifty dollars per share and an investor wants to buy it, but only at a price of 48 dollars so you can maximize your cheddar cheese, the order would then only execute if the stock price reaches or Falls below the limit of 48 set. Now this is the recommended way of making your trades if you want to avoid the possibility of any huge slippage, But you know, if you're impatient and you're trading frequently, you can always just do a market order to get it done with.

You also have stop loss order. So this is known as a stop loss order or stop buy order. and it's an instruction to buy or sell a security once its price reaches a specified trigger level known as the stop price. Now, the purpose of a stop order is to limit potential losses usually, or to initiate a trade when a certain price point is reached.

So for example, this is similar to a limit order, but there are some differences. If an investor as an example, owns shares of a stock that currently is trading at sixty dollars per share, but they want to limit their potential losses, they can place a stop loss order at fifty five dollars. So if the stock price Falls to or below the price of fifty five dollars, the stop order becomes a market order and they execute the sale, helping the investor minimize losses. Now, the main difference between a stop loss order and a limit order is that a stop loss order becomes a market order once the stop price of a stock is reached.

There's a lot of stuff right now. I I Know this isn't going to be that important unless you're trading stocks that aren't very liquid. So if you're trading like you know big stocks. Apple Microsoft Adobe Nvidia The you know, whatever it is Chipotle You don't have to worry about these things, but it's worth noting these things when you do get into the penny stocks that have much smaller market cap sizes.

All right. next chapter, How to research stocks. So there are going to be two primary ways of analyzing whether a stock is a good purchase or not. Through this, you have fundamental analysis and technical analysis and both of these are very viable options and whichever one you choose depends on your personal preference, your investment plan, and how much time you decide to invest into the market.

For now, fundamental analysis evaluates a stock by measuring the intrinsic value of a company and determining whether that stock is undervalued or overvalued. Technical analysis is pretty much when you see like people like with all the Black Candle sticks and like you know they're like it looks like they're like hacking something. that's technical analysis. This here differs from fundamental analysis significantly and it's a Trader's attempt to identify opportunities just looking at statistical Trends such as movements in a stock, price and volume.

For fundamental analysis, this study includes many factors which has balance sheets, income statements, cash flow statement, and then you also need to know things like an EPS a PE ratio a PEG ratio PB ratio Roe annual financials. Uh, they'll even mention things like ipada or epita whichever one you want to say I Think it's worth mentioning though. don't get overwhelmed by all of this. You don't need to fully know the you know key financial data at all times and the 10q reports.

This is generally what people on Wall Street does. But if you at least know the basics like how a company is performing, you know if they are in the green with their cash, if their balance sheets look healthy, those are going to be some of the main things you know. knowing if it has good income, if it's Diversified if it has room to grow as a company. Now, when it comes to fundamental analysis, here are the pros and the cons.

You get a real good, in-depth understanding of a company's performance. You can have a long-term investment perspective and then you can also consider economic conditions. But the cons are there's a lot of time intensive research. It's limited in its short-term predictability, and it can also be subjective just like any type of analysis.

So there's no right or wrong thing that you can do when it comes to. TA Technical analysis: You look at trend lines Candlestick Fundamentals You look at moving averages V Waps trading volumes Rsis. On top of that, you're going to be looking at psychological resistance levels, risk management, emotional discipline from other Traders Maybe breakouts following certain types of news that then impact the way certain graphs go. You're also going to be looking at the 52-week highs and lows or also even the float data When it comes to technical analysis, the pros are that you get short-term trading advantages.

So if you're a day trader trying to make money like every single day and you're constantly trading, you're probably going to be using technical analysis. Not probably you're going to be using technical analysis. The cons for this is that you have limited Financial Insight So if you're doing Ta, you're most likely not going to be looking at any of the company's financials. you don't care about their Epas or you're not going to be caring about the company's 10q report their you know return on ad, spend their EPS their PE ratio So you're going to be limited in their financial insight.

You're going to have interpretation challenges. so sometimes stocks just go up for no reason. and also you're going to be limited in the predictive ability of where a stock can go in the long form. Now guys out of the two I personally use both Ta and both fundamental analysis.

If one you know fits your investing Sona a bit more where you want to be more risk adverse you might want to go long term then fundamental analysis might be best for you. But for me I Love just doing a variety of research. so I would look at a fundamental analysis of a company, maybe some trends like as an example One Play that we mentioned in our Patreon Group is uh my Adobe buy I bought into Adobe before it started skyrocketing based off of what I saw with AI We actually timed that by perfectly and that's because I looked at fundamentals. but I also looked at the technical analysis of how the stock has been performing in the last year or so I noticed with that stock, it had actually hit its all-time high many, many months before.

We were nowhere near it and it was actually going down. So I saw a good buying opportunity at that time. So I used a mix of both fundamental and technical analysis in my research. So now that we have a full understanding of stocks of the type of research, how can you actually find winning stocks? Well, the first option for this is going to be using a stock screener.

So there's hundreds, if not thousands of different stocks now on the market and it's going to be a waste time to just go down a list and you know, just start finger pointing which ones that you want to start your investment research on so a way that you can actually kick start. All of this is to use a stock screener. This is going to allow you to filter and Screen stocks based on specific criteria and narrow down to a manageable list that meets certain requirements. So a few examples of the parameters you can screen for is market cap if you want to buy into low cap stocks or high cap stocks or if you want to focus on a specific industry or sector.

or maybe you want to look at valuation ratio so you want to look at specific PE ratios. or maybe you want to set it to certain dividend yields and you want to look at stocks that pay out a bunch of dividend to their holders. On top of that, you have technical indicators. So stocks that may have moved a lot in a specific point.

or maybe they've been going down for a really long time and you're like okay, this is a strong buying opportunity because people keep selling. This is usually during the times where they say if people are all buying, you sell or if people are all selling, you buy. Now the second way of finding potentially good stocks is to consistently stay informed on market news, market trends, and Company development. So you know what I like to do is if I'm working out at the gym, I'll usually see like CNN or like you know, Fox stocks or something like that playing on the TV and I like to see what they're talking about I like to see what kind of market trends that may come up there now I Just gave you guys an example of artificial intelligence.

but if you weren't invested into Nvidia or even Adobe before their massive pump, you would have been able to make a lot of money. Now lucky enough for you guys for the price of a Netflix subscription, you can go ahead and join our Patreon community. This is called the Jungle Run off of my last name where you're going to be able to get informed on the top market news and business Trends Minimum of three times per week. So every Monday Wednesday Friday we're going to give you an update on things to look out for, any breaking news to also keep you informed about the market and on top of that anytime I make any huge buys within the market I'll also be giving you guys a notification there and with that you also have access to the Discord Community The Patreon Community and more I Think it's well worth the investment.

It's only 15 bucks. it was 70 bucks during the bull market we price cut it but from here on 15 is the lowest it's going to be. It might actually even be like 25 30 by the time you're watching this video if it's posted. you know, even a few months from now.

So if it's 15 right now, you're getting a deal. Even if it's 30 40 a month I Still think it's a great deal because it's only going up and the price is never going to go lower than that. Either way, you don't necessarily need to join it in order to find success within the market. If you have your phone, you have Apple news you have Google Okay, the internet is free.

You guys can actually have access to a lot of this information as well. This is just going to be an easy way for us to send it to you if you want it. So for chapter eight, this is going to be all about building a proper stock portfolio. Now this is going to be a bit more general just because everyone has their own investment plan, their risk profile whether or not your mom and dad has a trust fund for you.

but once you've gone through our investment Playbook the PDF that I mentioned earlier, you're going to have a better idea of what that risk tolerance is, what your investment goals are, what your financial situation is, and then from here you can begin investing and allocating your portfolio accordingly. So to start out, we have low risk for first high-risk Investments With low risk we have bonds Certificate of Deposits So CDs we have index funds Blue Chip stocks treasury Securities and money market funds on the higher risk side which is what I like to be in Guys I'm not gonna lie I like the small cap stocks, the emerging market stocks I like the sector specific stocks I Don't really touch penny stocks too often, but you know I did some of the meme stocks back in the day, lost a lot of money, made a lot of money anyways. and then you can also invest into derivatives. So as a general portfolio allocation, you can follow along on what's on your screen or order to get that idea for me.

I'm a higher risk investor. 70 to 90 of my portfolio is actually in stocks and in crypto. but through those portfolios I don't just buy one stock and make that the whole portfolio I buy into either ETFs like the S P 500 or I'll buy into my own basket of funds. So if you guys actually join my patreon, you'll see exactly you know what that split is looking like, what my watch list is entailing.

Out of all that, my favorite strategy is dollar cost averaging. So whichever kind of portfolio you choose to build and whichever investment aligns with your strategy, I Will always recommend implementing a dollar cost averaging strategy. So this is actually really simple. It sounds complicated, but this just involves you consistently investing a fixed amount of money into a chosen investment regardless of its current price.

So the advantage is the dollar cost averaging is just simply that you are able to mitigate the impact of Market volatility on an investment and you're able to just consistently invest into the market. And it plays into the principle called time in the market versus trying to time the market. Now, dollar cost averaging is particularly valuable for long-term Investments which enables a discipline and systematic investment approach over time. It also helps to reduce your risk of investing a large amount of money at a market Peak which can result in significant losses.

So the way I would dollar cost average today is you know if I'm trying to buy into like Adobe stock again and I'm really bullish on AI and what that company is doing instead of buying all of like you know, a thousand dollars worth of adobe stock all at once I would buy fifty dollars of adobe stock and just spread that out until I hit a thousand dollars invested into it. You don't have to do 50 bucks, you could do a hundred dollars and you could do that daily or you could do that every week. The most conservative approach to investing through dollar cost averaging is doing this method by investing, say a hundred dollars into an index fund which then invests into a broad basket of different stocks. So index funds guys is the easiest way to go.

If you don't want to worry about doing research and all this stuff, just invest into the S P 500 which is a collection of the top you know stocks within the market and if the entire stock market goes up, your money is going to go up. but if it goes down usually you're spreading out your risk with all these different top stocks that you're mitigating the risk as much as possible, but you're still getting exposure within the markets now. Chapter nine: This is taxes, so taxings are a bit of a boring chapter, but we aren't gonna ignore this because it's still an important part of investing. now.

The goal is to make as much money while legally paying, paying the least amount of taxes possible. Now, let's first go over taxes on custodial accounts we talked about. You know these under 18 accounts Earlier, custodial accounts are actually subject to something called the Kitty Tax. So the Kitty tax is a rule that requires that some investment income earned by miners be reported on the child's own tax return at a rate equal to that of their parents marginal tax rate.

Now, the Kitty tax only applies if you're under 18 years old, or you have a full-time student aged 18 to 24 whose earned income for the year is more than half of what your parents paid for your support. Under the Kitty Tax, the first one thousand one hundred fifty dollars would not be taxed, but the next one thousand three hundred fifty dollars in profit that you make would be taxed at the child's marginal tax rate. and after two thousand five hundred dollars, it will be taxed at the parents tax rate. If it's confusing, it's okay, just skip ahead.

Okay, you can ask your accountant about this. I am not a registered CPA I'm just a registered CGA registered cool guy Asian By the way guys, if you're getting any value, can you drop a like on this video where an hour and 20 minutes long into this recording. Following taxes though, there are two more things you need to know about this Capital Gains Tax. This is short-term capital gains or loss.

And also long-term capital gains are lost. So for short-term capital gains or loss, if you hold the investment for less than a year, you're going to be taxed. At short-term capital gains, this can be as high as 20 to 30, or even 40 on top of your actual taxable income. On top of that, you have long-term capital gains where if you hold the investment for more than a year, this is why it's good to actually go long because you get long-term capital gains instead of having to pay more taxes on short-term capital gains, and you get taxed at roughly half the rate.

If you want to be the most efficient with taxes, though, investing into a Roth IRA or traditional IRA or 401k plan is going to be the best way to go. Now, if you make a certain amount of money though, you can't qualify for this, or if you're making, it's roughly around the 200k range, that amount is changing every single year. You can look up what that amount actually is, but I Know that I Haven't been able to qualify for this for many, many years, but the Roth IRA is something that you should take advantage of. If you do qualify with the Roth IRA through qualified withdrawals from these accounts, you're pretty much going to be investing completely tax-free and taking advantage of what a lot of people aren't doing these days.

When we're talking more about 401K plans, these contributions are typically tax deductible in the year of contribution, and you can also do this through an employer. You can ask them about it. Sometimes they'll go ahead and match your 401k. So this is another way that you can get tax deductible or tax deferred bonuses.

So this is another way that you can get tax deductible or tax deferred bonuses. Now a lot of people will say oh man, I don't want to invest because I don't want to pay taxes or it's going to raise my tax bracket. To me, that never makes sense because you're still making profit. Like if you make a hundred dollars and you have to pay 40 in taxes on the high end, you're still keeping 60 bucks within your pocket.

You can always do other things like tax loss harvesting where if you lose money in stocks, but then in the next, like two to three years in the future you make money. You can offset those taxes by the losses that you had. So this is another strategy that the Ultra Original Elite do in order to maximize tax advantage savings. Frankly, if you live in the US depending on some areas that you live in, even if you make two million dollars, you have to assume about half of that or a million dollars goes to the government.

And you know at the end of the day. guys. I Realize this when I started making money, taxes are nuts. It's crazy.

You only start worrying about this when you enter that higher tax bracket. But yeah, this is definitely an issue for chapter 10. Here are some tips for successful investing. So guys: make sure that you're investing for the long term most day.

Traders actually end up failing and you want to give yourself the best chances of winning by having a long. Outlook Another tip is to reinvest your gains. If you don't make profit, don't get in the habit of cashing out and spending it. Your portfolio is going to grow exponentially if you reinvest your profits instead of spending it.

Also, do not follow blind trades if you think someone is doing well within their trading Niche or expertise. Make sure you at least do your own research and know exactly why you're purchasing a stock before just blindly following a random person's advice. Next thing is to make sure that you always have a plan for each trade you make. So even if it's I'm holding this stock for two to three years, ignore whatever short-term volatility happens.

Okay, if it goes up, or if it goes down, if it goes up 100. If you're gonna hold it for two to three years, stick with that plan. Don't be changing up on yourself. Next, make sure for each trade you make, you have the following metrics planned out: you have a profit Target you have a stop loss and a profit loss ratio and combine that with the fact that if you're able to trade like a robot and you keep your emotions out of the decision, you should be able to increase your chances of success a lot more.

Another big tip: Keep your emotions out of your Investments decisions. Long term. Don't get married to a stock. Okay, one stock that I held for a while was Academy Sports Outdoors I rode that from 15 all the way to fifty five dollars and I was like I feel like I'm getting married to this stock where I'm holding it for a long time because I held it for two to three years I sold it.

After that, it went tumbling down. So I was really happy that I made the decision to sell and I followed my investment plan and I didn't get too greedy I think it's also so important to not overthink. Okay, investing isn't as hard as you might think it is. Just stick with the strategy, start small and be consistent and on top of that, never invest more than 20 of your checking account.

Okay, I made the mistake of investing like all my money back then and I was like okay, this is way too stressful. so if you don't have a lot of money, if you can only invest a little bit amount. Luckily, enough fractional shares exist, so if you can't afford to buy a 50 stock, you can buy five dollars worth of that stock using some of these brokerages. If you don't have that much money, start a side hustle.

Make some more money. Okay I make a lot of videos on this channel talking about how you guys can start a side hustle. make a lot of money today. Okay I started with Ecom I got into Drop Shipping moved over into private label branding started Amazon FBA Then after that I started a digital marketing agency.

Following that I had this YouTube channel following that I scaled this to a significant amount and from there we're growing even five more businesses on the side. If you want to make true wealth, I Believe the best way to do it is to start a business anytime. I like go to the car dealership I'm buying a car. They're always just so impressed by what I do and this is not to flex by any means.

This is usually like the finance guy and I want him to think that I make less money so I get better interest rates but he'll tell. Tell me like there are doctors and lawyers who are now 40 or 50 years old that are not even making a fraction of what I make now. and that's all because I pursued starting an online business. So if I was able to do it as a broke, you know 19 20 year old I Know that you guys can too follow along on this channel because I'm going to make even more resources and guides for you guys to succee