Back in 2016 when I'll still student attending Community College I used to sit in my classroom lectures secretly trading stocks now I Remember when I first started though I would just invest into any random stock that I heard about Facebook Well, I use it Amazon I bought off of their Netflix I would watch it back then I wish I knew better the fundamentals of proper Stock Investing this would have saved me more time, more money, and much less headache back then I didn't have much money to invest, but a few years later I now own multiple six-figure stock portfolios and eventually I've come to grow one of the largest personal Finance YouTube channels and I've had some pretty cool moments to share. I was featured in a Netflix Money Explain documentary I've been featured in multiple articles and press releases with regards to my journey and if any of you guys were active during the time when I was growing my channel the most I was the biggest YouTube channel to stream the whole historical AMC and GameStop moment. if you're watching this video, let me tell you you've actually discovered this at one of the best times to ever learn in the history of investing. During previous years, stock prices were at an all-time high, making it difficult for newer investors to enter this.

Market This time around, the current recession has caused stock prices to drop, presenting a unique opportunity to invest in high quality companies at extremely attractive valuations. So whether you plan to trade to just fight current inflation rates or you want to double triple five extra money or you want to make life-changing money for future generations and even your family, this video is: All For You History has shown that the stock market goes up. it goes down, but in the long term run, it always recovers and has been coming out further on top by investing. Now you can take advantage of lower stock prices and position yourself for potential growth as the economy eventually rebounds.

Remember, every successful investor has faced Market challenges and those who have persevered through tough times have reaped the rewards of their patience and their resilience. The Lord God has truly blessed me in the last few years and I've been able to buy a few of my dream cars I've been able to live in a two million dollar home in the suburbs of Washington DC and I Hope that after watching this video, you'd be encouraged to be one step closer to achieving any of your goals as well. If your goals are similar to that, you want to have a nicer car, you want to support your family. This is one of the things that I've done and it's to learn proper investing fundamentals.

The first thing we're going to do in this video is to go over the basics of stock market investing. I'll explain to you what stocks are and how they represent ownership in a company and I'll discuss both the benefits and risks of investing into the stock market. I'll also be introducing you to different stock market exchanges I'll share with you what that is I'll share with you what a market index is I'll also go over a lot of the popular stock market terminology. On top of that, before you actually start your journey in investing.

I'm gonna go over the key things that you need to know, which include discussing the importance of setting up your personal financial goal, having a viable investment plan, and I'll explain the difference between active and both passive and investing strategies. And on top of that, I'm going to introduce the concept of proper diversification and why it's so important. Once we get through that part of the lecture, I'm gonna go into more of the fun part which is opening up a brokerage, getting started and I'll explain to you exactly how it works and why it's necessary for you to start investing into stocks. I'm going to take you through doing proper stock market research and Analysis I'll share with you exactly what they're seeing, what they're talking about.

So by the end of this video, you'll also know anyone who talks about stocks. you're gonna know exactly what they're talking about. Following that, we're going to discuss the importance of staying informed about market news and Company developments and how you can get proper real information none of the fake stuff. and we'll also be going over how you can create a balanced portfolio based on risk tolerance and investment goals.

And I also discuss the concept of dollar cost averaging and its benefit for long-term investing in addition to having some essential tips for successful investing. Now that was going to be the last part of my lecture, but I'm also going to share with you what I personally think you should be doing within the market for the year of 2023 and how I would recommend you to make millions of dollars. Now by the way guys. Disclaimer: Not a financial advisor I Did not go to school for any of this.

Everything that I've learned comes from the internet. It comes from my own experience. It comes from me actually doing I Believe this is going to be one of the most valuable videos that I've ever made here on YouTube So be sure to watch through the entire episode. And if you need a way to jot down notes, whatever you do an iPad a notebook your notes section within your phone, be sure to pull that out because there's a lot that we're going to cover.

By the way, I Know this is going to be a lot of great information. So if you want to go ahead and download my entire PowerPoint presentation that I'm going to show you in this episode, be sure to drop your email link Down Below in the description and now send that over to your way as well. In addition to that, I'll send you some special promotional offers where you can get some free stocks. Some of them are up to 15.

17 Free stocks That'll help you get kick-started in your financial Journey So ladies and gents, this here is the full PowerPoint presentation on everything you need to know with regards to getting started in Stock Market Investing. So for the first chapter of this video, let's go over the basics of the stock market. In this, we're going to be covering: Why you should invest in the stock Market Why you should consider investing. Right now, we're going to be going over General Risks of investing the stock market we're going to Define What stocks are I Feel like a lot of people hear about investing to stocks, but they don't actually understand what a stock represents.

We're going to be going over the definition of what a stock market is, and I'll be sharing with you the different types of stocks, how you can categorize it, and I'll also go over some of the most popular basic stock market terminology. By the way, I'm going to break things down in a way that is simple to understand. so we're going to be using a lot of analogies, a lot of visuals, and this way you'll have a proper idea on not only what stocks are, but you'll really know like it's the back of your hand, exactly how this whole thing works. So why should you invest into this stock market here? I Have four points listed out and they're going to be several reasons, but I Believe this here is the most important number one.

You're gonna have a potential for long-term growth financially. Historically, the stock market has provided higher returns over the long term compared to other investment options such as bonds and savings accounts. By investing in the stock market, you're going to have the potential to grow your wealth over time. The next reason you should be investing into the stock market is for diversification.

Investing allows you to make money in your sleep. It's what entrepreneurs call passive income or making that Wi-Fi bread. And basically, if you understand proper diversification and investing into the markets, you can find that you're making money every time without having to work or put in extra effort. It also goes back into that popular saying: if you ever read the book, Rich Dad Poor Dad By Robert Kiyosaki talks about how you can get money to work for you instead of working for money.

One of the best and easiest ways to do that is to find time to invest and allow those Investments to start creating new generational wealth. Investing into the stock Market is also a great way to diversify in whole as your portfolio reduces risks because when you invest into the stock market, you don't have to just choose a singular stock within the tech Market or maybe a oil stock. You can diversify the entire portfolio and reduce your overall Risk by owning stocks from different companies across various sectors and industries and you can spread your risk and potentially minimize losses. Now Stocks Also are a great way to earn passive income because some stocks pay dividends which are a portion of the company's profits that are distributed to shareholders.

So just by owning a stock, you can get paid consistently every single month or every quarter for those Investments that you hold. Last but not least, stocks are a great way to hedge yourself against inflation. This is pretty much more relevant now than ever before because inflation is just crazy. The cost of eggs, The cost of goods, The cost of cars.

By investing into the stock market, you have the potential to earn returns at outpace inflation and it allows you to preserve. The Purge Interesting power of your savings. Investing to the market sounds pretty good, but why should you even consider investing now? Well, nowadays, there are more tools than ever before for you to become a successful investor. If you wanted to get into the stock market, even over 10 years ago, you would not have resources that exist today such as free online courses free YouTube videos like the one that you're watching here and different types of tools where you have blogs you have.

Google You have other websites like Investopedia that give you so much information and the tools that you need in order to make money. It's also never been cheaper to invest. Brokers Used to charge a one to two percent fee per trade, but nowadays you can also find several Great Commission free investing platforms and on top of that, one of the next points is that investing is arguably the greatest tool for growing real wealth. According to historical data, the average annualized return on the S P 500 is around 10 where your cash is losing value every single day.

The US economy recently also had a 40-year High inflation rate and with our current rate, your cash is losing at around six percent at the time of filming this video of its value just by sitting in a checking or savings account. Now, although these things sound great, there are General risks that you do need to know about before investing to the market. The main one here is going to be Market volatility. and this is pretty much where the stock market itself is going to have inherent ups and downs, where prices can fluctuate dramatically and unpredictably.

Although in the long term run, a lot of people will make money within the stock market. Most investors might actually lose money in the first few years or when they first get started because they don't know how to handle their emotions. and they go into these Investments they Panic a little and they decide to sell at a loss if you don't know how to manage your risk properly, there will be times where volatility pulls up and you end up selling in panic if that happens. That's obviously a risk and not a benefit within investing into the market.

And on top of that, whenever we have economic uncertainty, you have to realize that the stock market is going to be closely tied to the overall state of how the General economy is doing. So, different things such as inflation, higher interest rates, or changes in government policies can all have a significant detrimental impact on how stock prices look for certain companies. In the best case scenario, you know the market is flooded with trillions of dollars. There is almost zero risk Where we're seeing inflation and interest rates going up, There's still a risk where you get company specific issues.

And this occurs when you decide to invest in a specific company or a stock, and for some reason they decide they're not going to do well. They decide to go through some financial difficulties. And what happens is when some of these companies go through any type of financial difficulty, we'll see the stock price begin to drop. Now, two more General risks of investing into the stock market involve timing and liquidity.

So timing is when investing into the stock market requires a long-term perspective. But it's oftentimes like I mentioned earlier where investors get a little antsy and they decide I'm gonna sell a little bit earlier which can result in more loss. Another risk of investing into the stock market is if you bought a lower cap stock where it doesn't have that much volume and you're unable to sell those positions. This is more on a rare occurrence just because a lot of people aren't actively trading huge amounts like hundreds of thousands of dollars into some of these what you call penny stocks.

But we'll talk more about that a little later in this video. So by definition, 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 you have a small ownership stake in it. So if I bought some Chipotle stock, I could go out and point at that Chipotle on my street and say I own a piece of that company.

When you say that I mean you're not telling the full truth because you don't really own all of Chipotle But you're not lying either because by owning a small share of it, you do become a technical owner of that company. So the value of your ownership State can go up or down based on how well the company is doing. So I would think about it like this: if you ever decide to invest early on where a company has a lot of risk, say it's a new startup. Okay, and they're coming out with some new Rev evolutionary technology where you put inside of your shoe like some, uh, some Dr Scholl's looking Alternatives It's basically a lot comfier, makes you a little taller, you can jump a little higher, and it just makes your feet and standing all day a lot easier on your joints.

A lot of people may not believe in this company, but you do say you invest in early and about a few years later they end up having what Apple did in the whole entire world. They just end up taking over. They have a whole bunch of products and you end up actually seeing the company grow a significant amount if you end up putting and investing a lot of money earlier on and that company grows. their stocks are naturally going to increase in price as well, and that means you're gonna make money.

Another analogy of what stocks are is just think about buying a slice of pizza. When you buy a slice of pizza, you own a small piece of the entire whole pizza, but if the pizza is really popular and more people want to buy it, the value of the entire Pizza goes up. But so does your slice. Now if the people don't like the pizza that you bought and fewer people want to buy it, the value you of your slice goes down.

So similarly, if the company you invest in does well and it makes a lot of money, the value of your stock goes up. But if the company performs poorly, say those little Dr Scholls or you got some smelly gross Pizza that nobody else wants, then the value of your stock goes down and the money you put in there would also go down in price. So why do companies issue stock? Well, the way? I Think about it. There are a lot of businesses mom and pop shops that aren't publicly exchanged on the stock market, so companies actually issue stocks to raise money from investors.

If you ever have watched the show Shark Tank with Kevin O'leary Mark Cuban and a few others, you'll notice that there are little startup businesses that are trying to raise money in order to grow their business even more. Now, a lot of startups don't actually get to just hop onto the stock market exchange and get listed publicly and then start getting a whole bunch of people to buy up their shares. A lot of them would initially need to go through a rigorous process in order to ever get listed on any of the stock exchanges. Now By issuing stock, the company also sells ownership in itself two investors in exchange for additional cash.

So there are going to be some businesses where they never want to sell ownership for most companies in order for them to expand. They're always going to need more cash to develop whatever technology that they want to achieve. Apple Probably wouldn't have been able to get to the size that they are now if they were never able to raise money because it costs a lot of money to make 100 or a couple thousand different iPhones and just think about all the technology they need now in order to continue with production and all the different equipment that they offer by companies issuing stocks. This here helps the company raise money without taking on additional debt and investors who buy the stock become shareholders of the company.

which means they have a claim on the company's earnings and their Assets Now By the way, there are actually two different types of stocks. There's something called common stock and preferred stock which we'll go over later. now that you have a better idea on what stocks are. let's talk about what a stock market is and this is really simple.

Basically, a stock market is just where people can buy and sell tiny pieces of ownership in bigger companies. So as an example, imagine your friends started a lemonade stand and she needed more money to buy more lemons and sugar in order to scale that business. So in order to do that, she might ask you and some additional friends to chip in some money to help her out. In exchange, she might give you a little piece of her lemonade stand like a tiny part of the table or even some of the cups on it.

That right there is kind of like what buying a stock off the stock market exchange is. You're giving a company some money in exchange for a tiny piece of ownership. When people buy and sell these little pieces of ownership on something, it's called a stock exchange and it's like a big marketplace where people can then begin to trade different ownership pieces with one another. When you own a piece of the company or say as an example, this lemonade stand and it goes up in value.

If someone else says wow, this lemonade stand is popping. This business is doing well. You can offer to sell your piece of the lemonade stand to this new buyer. By doing this, you're going to be getting even more money because you bought in earlier on before it was valued even more and the other person who is buying the shares off of you would be getting a good deal if that.

Lemonade Stand does decide to increase in its price. Keep in mind there's always a chance that the company does not do well, so if this time comes where you know someone wants to buy it from you, they could also lose money if the lemonade stand happens to not scale or not have the fresh drinks like it once did. so. I mentioned earlier that there's preferred stock and common stock.

Although they have some similarities, they are different in a few ways as well. So when it comes to preferred stock, preferred shareholders will pretty much have a priority over a company's income, meaning that they're paid dividends Before Common shareholders and they also get paid out first in the case of bankruptcy, but you have no voting rights. Now, On the other hand of that, we have common stock and this is a majority of what stocks are issued in. So common stockholders are last in line when it comes to company assets, which means that they're going to be paid out after creditors, bondholders, and the preferred shared holders.

On the other hand, of preferred shareholders, common stockholders actually have voting rights within the company. So as an example, Preferred Stocks Pepsi has several series of preferred stocks which pay a fixed dividend and they also have a higher claim on the company's assets than the company common stockholders. Now Wells Fargo is also another preferred stock which pays a fixed dividend and they have priority over common stockholders in the event of a company. Liquidation On the other hand of that, some good examples of Common Stocks is Apple.

This provides investors with voting rights and potential for capital appreciation. You also have Amazon which is another common stock that provides investors with voting rights for potential capital appreciation. And like always, usually Common Stocks are not going to be paying a dividend. And it's important to note that there are many stock markets available, and not all companies issue preferred stocks.

And additionally, each Company's stock may have different characteristics. So like always, it's important to do your own research before investing. Now, what you need to know next is stock categorization. and there are three main ways to categorize different stocks.

Starting with number one, it's going to be the overall company size. The way this is classified is that we have small cap, mid cap, and also large cap. If it's a small cap company, it's going to have a market capacity of less than two billion dollars. If it's a mid cap, it's going to be anywhere from 2 billion to 10 billion dollars.

And if it's a ginormous large cap company, it will be worth over 10 billion dollars in market cap. Another one is going to be the sector industry where stocks can also be categorized based on whatever Market they operate in. So as an example, there's technology. There's energy.

Healthcare Financial Services Travel. There's Airlines I Mean there's a lot of different categories that you can get into I know even additional ones that were growing and going crazy during the pandemic was like cannabis stocks or solar stocks. There's a lot. The third way to categorize this is the style and the strategy.

So you can also divide different Stocks by knowing if they are a growth stock, something that is focused on actually driving up performance and making an impact on the world. Or you can also look at dividend stocks which pay out that fixed monthly amount for being a stockholder. and also you have value stocks Now in this section I'm going to be going over some basic stock market terminology I actually have here on the screen some of my favorite ones which I wish I knew earlier. So by understanding what all of this means, you're going to have a very good general idea of the entire Market.

It's not just for beginners, but I think everyone should know this off point. but I just wish they taught a lot of this in school. Anyways, the first one that I have here is knowing what a bull market is versus a bear. Market Basically, when an investor is bullish, it means they have a positive outlook and they expect prices to rise.

In other words, they believe just an entire Market sector security is going to have an upward trend. On the other hand, if an investor is bearish, they have a negative outlook and expect prices to fall. Now the best way to remember the difference between a bull and a bear. Market Just remember this: I Think about the movie I believe it's called the Reverend with Leonardo DiCaprio where a bear was literally mauling him and it was like a graphic scene and it was just destroying him.

So I think of bears with like negativity. On the other hand of that, Bulls are moving forward. They're animals that like to move at PACE and they don't slow down and they're trying to constantly hit their target now. Blue Chip Stocks So this is basically just stocks that are compiled of large industry-leading companies.

The expression from this came from: Blue Gambling chips, which are oftentimes the highest value chips within a casino. If someone says oh, I only trade Blue Chip Stocks it means that they're not really risky because they're trading some of the biggest companies that are probably not going to go out of business anytime soon. So by investing into those blue chip companies, you're not going to be seeing huge upside. but you also invest into safer, more conservative bets.

Now, you also need to know what different common trading strategies. So there's day trading, swing trading and position trading. Day trading involves buying and selling securities within the same trading. Day Day Traders Also typically make multiple trades in a single day and close out all positions before before the market closes.

This pretty much just talking about like anyone you see like those Instagram you know Forex guys where they see a whole bunch of the lines and the candles and it looks like they're like hacking or doing some data stuff. That is essentially day trading. It's where you find market volatility. You enter and within the first five to ten minutes they might open a position and close it out.

And if they can make a profit within that short period of time, they're often called day Traders. Now by the way, even if they're not making a profit, they're called day Traders. too. And out of all the different investment, Styles Day trading is the most highest risk.

But if you know what you're doing, there are definitely ways that a lot of people can make more money than you would ever from swing trading or position trading. Now, swing trading is what I would imagine just visually like someone is on a swing and they're going back and forth. Usually it means you start investing into a position at one week and maybe in the next week or the following week or even maybe a few days, they decide to capture that short-term price movement for a profit. Swing trading is often what I do because I just don't have the patience to sit through and day trade.

I Think day trading is more on the gambling side because you just never know for sure what a stock is going to do and if you're buying in a way where you're gonna sell instantly and you're just tossing it up in the air I Say that's more of a risk and that's something out of your control that's more of gambling. But if you're swing trading, you have different contingencies in place where if it hits a certain amount, it's going to automatically sell. but still, it's a form of what people call long term trading. a very arguable type of investing.

Now, position trading involves holding Securities for an extended period of time, typically for several months to even several years. Position Traders is what I call actual investing where you aim to capture the long-term trends within a market. Now scalping involves making very short-term trades, often just a few seconds or minutes long. So within day trading, scalping is something that can occur pretty commonly, and scalpers aim to profit from small small price movements to making multiple trade rates throughout the day.

On top of that, you have algorithmic trading and options trading. Algorithmic trading pretty much involves using computer programs to execute trades based on predetermined rules and algorithms. This is where if you ever hear like a finance Pro trying to flex on you and they say oh, I'm into Quant trading and doing all that that falls within the umbrella of different algorithmic trades, using complex mathematical models to identify profitable trading opportunities. Last but not least, in the world of trading, you have options trading.

This is a bit more advanced, but options allows you to buy and sell contracts, which gives the holder the right to buy or sell security at a predetermined price within a certain time frame. So I would say options go outside of the scope of this video, but basically it's another strategy where if you don't have that much money and you don't want to use Leverage which is pretty much taking a loan out from some of these exchanges or if you only have a thousand dollars to your name, Leverage would allow you to have an extra ten thousand dollars within your account. but if you lose it, you go into automatic debt. If you do decide to do well, you're going to be making way more money than you initially could have.

The other option to that is literally called options Trading where if you don't have the money up front right now, you can choose different contracts that still could allow you to profit a significant amount in the future. Now Options trading was a lot harder to do back in the day, but nowadays with all these apps and free resources they will tell you you know if you choose a contract out of the money like far out ahead in the future months and for whatever reason you think for some reason you know Apple's gonna release a new company product that's gonna blow everyone away and no one knows about it, only you. This might be something viable to you, but as a beginner I would just focus on the fundamentals that I'm going to share in this video and then later on if you guys are looking to learn more about options or even someone more safer types of Investments like just going into dividend trades, let me know Down Below in the comments because this is definitely something I can add into the pipeline of making some more guides for you. On to sum up the different training strategies, just know that all of them have their own advantages and risks and it's important for you to understand that each strategy has different tolerances.

so if you don't have the time or the capacity to do scalping or day trades, then it might even make more sense for you to be a swing Trader or someone to go position trading in a very long term mindset. On top of that, we have something called going long versus going short And to go long or short on a stock means to take position on the direction of that price movement. Basically, when investor decides to go long on a stock, it means they are buying shares of the stock with the expectation that it's going to go up in price in the future. The opposite end of that, if a investor thinks that a stock is not going to do well, they can bet against it and they can short a stock.

So by definition, a short squeeze is just a market phenomenon in which an unexpected rise in the price of a heavily shorted stock prompts large numbers of short sellers to exit their positions by buying the stock up and thus driving the price of it further. So if you guys were around during the whole AMC and GameStop Saga basically everyone was betting that this stock was going to continue to go down. So a lot of the Hedge G's or hedge funds these huge institutions had placed so many bets that GameStop and AMC it was worthless and they were going to keep shorting it because it was going to keep going down. The more shorts that were open, the more it was driving the price of that stock down and down and down.

A few other people within the Reddit Community realize there are too many short positions open here and it doesn't deserve to be this low. What if we get people to start buying the stock forcing it to go up and if it does, then the hedge funds who bought shorts on it would have to cover their shorts? They'd have to buy back those positions forcing it up even more. And that's why we had some crazy historical price movements of what we know as a short squeeze. So the next chapter of this, let's go over the basics of what you need to know before you start investing.

This will include setting financial goals and creating your own custom investment plan. We're gonna identify your risk profile and what that means and we're going to talk about the difference between active investing and passive investing and how you can use that for your own benefit. So first of all, setting financial goals and having an investment plan are essential when it comes to stock market investing. The reason for this is that setting financial goals is going to help you define what you want to achieve with those Investments and it could also help you generate a certain level of income.

say, for example, reaching your goal of saving up for that dream house and getting that down payment on it, or saving up for your future retirement by knowing your goal. It's going to help you to stay focused and to make better decisions. A lot of people invest into the market saying okay I just want to make as much money as I can Wrong Answer: That is the worst mentality to go for have a certain goal. Maybe you want to make an additional thousand dollars a month.

Maybe you want to make a hundred thousand dollars by the time you turn 30.. use these as different milestones in order to gauge how much you need to invest in the market, the type of risks that you may need to take, and how much you need to realistically be making every week or every month, or even by the end of the year for you to stay on track going into risk tolerance. Everyone by the way, has a different level of risk tolerance, so it's going to be different for someone who has five different kids. Okay, and there are living paycheck to Paycheck versus a young 21 year old entrepreneur who had an inheritance of 10 million dollars from his mommy and daddy.

Okay, the one kid who's inherited a lot of money has a higher risk tolerance where he could lose a million dollars. It's not going to make a difference on his life, he could just access more of his uh, well, treasured fun that his parents gave him Versus if you lose a million dollars and you put yourself in debt, you have kids that could possibly go starving. An investment plan is going to help you create a portfolio that aligns within your own risk tolerance and your financial goals, so identify exactly who you are, how much you can lose within the market, and what you can risk within. Setting a financial goal, you have to reduce your emotional investing because emotions is ultimately what leads to rational decisions and arguably this is what causes a lot of people to actually lose money within investing.

Now, we talked earlier about diversification, but this is reiterated here. It is so important to diversify and that's why it's important to set this aside and managing your own risk within your portfolio. An investment Plan is a Surefire way to help you create a diversified portfolio that reduces your overall risk. and last but not least, better returns This year just means that a well-structured investment plan can help you achieve better returns over the long term instead of consistently trying to day trade the market losing every time.

You can find that if you have a good, sought out Financial goal and investment plan set, you can make more money over the long term run. So I Highly recommend you guys to do this. Get A notebook. This can be a brand new notebook that you buy just for trading and journaling.

and write down the answers to these questions. What is your game plan? What is your budget? What are your financial goals? Why are you investing? Where do you want to end up? How much of your income can you allocate towards investing by answering those questions? You're going to be able to reflect more on who you are and the risk that you can take before you can even invest. I Highly recommend that you have these three things done. First of all, eliminate any debt.

If you have any type of credit card debt or even just like like high auto loans like 12 to 15 percent that are destroying you, make sure before you ever start investing, you start taking care of those different types of interest bearing loans. If on average, the annual return in a stock market is between eight to ten percent, but you're paying a 12 to 20 percent interest rate on your credit card, it is not going to make sense for you to start investing. On top of that, you want to make sure you have a rainy day fund. A lot of people will encourage six months I Say have a 12 month rainy day fund where it'll cover all your living expenses.

So if you decide Okay, I Got no money right now. You know you lost your job. You're going to be okay for the first year because you have enough money saved up so you can find another job where then you can decide to invest later on. Now last but not least, identify your risk profile.

Now this here is so important. We just did a whole section on it. We talked about it a lot, but it is that important that I had to put it twice within this: PowerPoint Know your risk profile and move accordingly Guys General principles of getting to know your risk profile Like I said Game plan, Budget Financial Goals: Why you're investing when you'll need that money and whether or not you're interested in high risk High reward Or if you're more interested in low risk, low reward. If you're on that low risk investment side, they're going to be options and Alternatives such as bonds CDs and mutual funds.

But if you are a little bit of a higher risk individual, you're going to have growth stocks, biotech stocks, crypto, and other Futures and different instruments that you can use in order to leverage some of the tools that exist in today's modern day. A general rule of thumb though for most investors is that if you're on the younger side, it's usually 80 stocks and 20 in safer bonds. And if you're someone who might be retired or you're more in the respectable older category, it's generally less stocks which are more risky and having more bonds which is a lot safer. As you age.

It's important to rebalance your portfolio every year or so, so this also depends on multitude of different factors. If you get a pay raise, if maybe you lose your job, you're going to be acting a different way with your own investment. Now out of that, we have two different types of investing. We have active Investing and passive Investing.

So active investing is going to be buying and selling quickly based off stock tips ta, sudden price movements Ta is technical analysis, which we'll talk about a little bit later on. On the other end of that, you also have passive investing where pretty much you buy an asset and you decide to just forget about it and this is also called hodling or holding on to dear life. Out of the two, active investing is going to be a lot more fun and more exciting, but statistically, you're likely to make more money through passive investing, where contrary, a lot of people think that the more you do, the more effort you put in the higher output you would get. But when it comes to investing, it's a little different.

It's like, you know, do your research before execute on a trade, forget about it, and most often, the person who's just hoddling, leaving it in there and not trying to time the market every single time usually comes out as a better, long-term successful investor who's made more money when it comes to the benefits of long-term investing, you also have compound interest, where basically this allows you to take advantage of the power of Investments growing over time and the returns generated by those Investments generating even more returns. If you do decide to invest for the long term, you can also write out most Market volatility. So if you're going to be investing for three to five years, whatever happens between that time, if it dips down a lot and then goes up a little and then goes down even more, you're not gonna be tempted to take a loss. You'll just ride it out and then at the end of that tunnel, If you end up being higher from where you enter the market initially, you'd still be making good money.

So on top of that, long-term investing will give you even more tax advantages. So a lot of people forget the fact that when you invest every time you buy and sell, you actually have to pay short-term capital gains on that amount. If you did decide, you'd make a profit. Long-term investing allows you to pay lower tax rates because you then get classified as long-term capital gains.

So this part of the video, let's go over how you can get started with opening a brand new brokerage account. By the way, what is a brokerage account? Let's go back to the lemonade. example. So brokerage account is kind of like the lemonade stand itself, but instead of selling lemonade, they help people to buy and sell things like stocks, bonds, and other.

Investments Now, just like how the person running the lemonade stand sets a price for their lemonade, a brokerage helps people figure out the right price to buy or sell their investment to other people who are interested. Brokerages also help people decide which Investments might be good choices because they offer different tools. Think of this being a tool or a Marketplace for you to actually go into the stock market and make an execute a trade. Now the brokerage firm that I'm going to be using for the example this video is going to be MooMoo This portion of the video here is sponsored by MooMoo and they actually told me that if I'm working on a video like this, they're going to be giving you guys free stocks.

And this is not just one or two free stocks, but this is going to be 15 free stocks for anyone trying to sign up. Another reason why this is amazing too guys. Back when I first started, they were not giving out free stocks like they were Now with this offer here, you could essentially just sell the free stocks you have make up profit. You could withdraw back into your checking account and say that you've made money within the stock market by literally not risking anything at all.

Now before we start though, there's a lot of stock market exchanges. You might be wondering why MooMoo and whether or not it's really safe because anything that rhymes with poo poo. I'm a little skeptical about especially having my own hard-earned money in there. so I think we need to First Define What MooMoo is because this is more than just a brokerage.

this is an app that allows you to also trade stocks, options and ETFs straight from your laptop. your iPad and your iPhone What I love about Muma is just the fact that they don't charge any commission fees. so there's a lot of other brokerages that still do this. They charge commission fees where they add up over time.

If you guys also were around during the whole Robin Hood you know collapse. The reason that that happened was because of pay for order flow type of orders. MooMoo does not participate in that so you don't need to worry about any Shady practices. They are also a member of the SEC Finra and the Sipc with Sipc protection.

MooMoo Users will get protection of up to five hundred thousand dollars on their account which also includes a two hundred fifty thousand dollar limit for cash. MooMoo is also owned by the parent company Futu when it comes to this app. First of all guys, I use Apple devices for like pretty much everything I have my iPad right here I have a Macbook here I got my iPhone I got multiple devices They have a really good UI software for Apple devices but even if you're on PC it's pretty clean on there too. To get started, use the link Down Below in the description.

This is where you're gonna get those free stocks and I'll show you what those free stocks look like and how to redeem them All right? So ladies and gents, when you set up your MooMoo account, you're going to be opened up to this page. It's going to look very similar on your iPad on your phone. Whatever device you're using go into my rewards draw I have 14 free stocks so two dollars 18 cents I got 13 more free stocks 2.95 Two dollars Two dollars ninety ninety some cents 2.81 cents. just keep going.

Let's see. Okay I got pounds here. Eight dollars Two dollars Two dollars ninety one Two dollars ninety one. Come on let me see if I can get something good here.

So a lot of the stocks it looks like I got were on the lower end, but that's okay with me. That's completely fine now. guys. what I did was load a thousand dollars into my MooMoo account and here what I want to actually show you is how to buy a stock and I'll also sell it for the purpose of this video.

In order to do that I'm gonna go into markets here. You have access to many different markets so I have us I can go into the options Market You know we talked about Apple at the beginning of this uh video. So we're gonna use the Apple stock. You're gonna be noticing a lot of different lines and charts and graphs.

If I go into indicators, these things are called technical analysis tools Guys, you don't need to know all of this as a beginner. Right now, the best and easiest thing that you can do is take a look at knowing how it's doing on the five day, how it's doing on the one day, and even how it's performing. In the last one month there was a high of 705 dollars 2012 sorry it was. it was back a while ago and you'll also need to know something called a stock split.

So if a stock one time was eight hundred dollars, two thousand dollars. but then all of a sudden it's half the price of that. What companies will do is split their stock so they will make it a more affordable for other people to get into a certain share. It doesn't change the valuation of the company, it just makes it look more appealing to a lot of other investors because if Apple was at three thousand dollars per share, I probably wouldn't want to buy it even if I could buy a fractional share.

which means I don't need to buy one whole share. I could buy like half of it or a quarter of it or even a tenth of it. So if we take a look at Apple right here I'm on the one month chart I can even go into the one week I could just zoom this out right here and see the performance I Believe there was a stock split here and since then I mean it's just a very consistent stock. so it's 159 today.

If I want to go ahead and buy this Stock Press buy. First of all, you're gonna have a market order. This is the simplest type of order where if you want to simply just you know, buy or sell a stock at the current market price, it's gonna do that. It's going to execute it immediately.

You also have limit order at the top. This is pretty much where you allows you to set a specific price that you're willing to buy or sell a stock at. So for example, if you want to buy, you know this: Apple stock at a hundred fifty dollars. I could go ahead and put the amount right here on the app.

We're going to change this to limit which is already there and then you know we'll change it to 150. That's when I want to buy it and then I enter the quality and then I could execute. Now if I go into different options though going back going into trade going into buy. so if I click on the order type right here I can open up different conditional orders.

A stop order is used to limit your losses. If the stock prices drops below a certain level below that, you're going to see trailing stop limit, and trailing stop. So a trailing stop order is similar to a stop loss order, but it follows the price of the stock as it moves up. So for example, if you own a stock that's currently at sixty dollars per share, you might set a trailing stop order at fifty dollars with a trailing amount of five dollars.

If the stock price drops to 55, your trailing stop order will be triggered and your shares will be sold automatically. Now there's a stop limit at the top of this, and pretty much this is a combination of a stop loss order and a limit order. And it means that if you want to sell a stock. For example, if you own a stock that currently is at 60 per share, you might set a stop limit order to sell it if it drops to fifty dollars, but only if you can sell it for at least forty five dollars per share.

So for the example of this video guys: I'm just gonna buy a market limit right here. so we're gonna press Market we're gonna go into one I'm gonna press buy and you set a trading password. All right. So to buy a stock it's really simple.

literally. All right. So I just bought some Apple share at 160 dollars. Now this is not too much of a volatile stock, but if I wanted to, got a little achievement here, got another achievement: I'm gonna go into my account.

so I actually got 78 dollars worth of free stock if I want to access it. There's some conditions here too going into my portfolio though right now I have some Apple stock right now it's at 160 dollars there. There's not much that's happening with it, but if at any time I want to sell, I'll just go back into trade I could sell my stock and I could set it for the market and whatever it is right now I would sell it. Maybe I make like 20 cents off this trade.

Basically, if I go back into my account I now have made a profit of two cents in the span of like two seconds so that right there is I would say uh, just the easy way to show you if you guys do want to sign up for MooMoo If you guys want to also get started with this exchange, check out the link Down Below in the description or scan the QR code on your screen. Now keep in mind these are affiliate links I will have the disclaimers linked Down Below in the description for you guys. as always, but like I mentioned, if you go ahead, just sign up, get the free stock so you don't like the app. You can always just transfer back into your bank account and they're not going to charge you any fee to sign up.

Going into chapter four in this section I Want to cover fundamentals versus technical analysis: I'm going to go over long position for short positioning and what the difference actually means when you start investing frequently, we're going to be talking about the importance of staying informed about market news and Company developments and I'm going to be sharing with you four steps to building your own stock portfolio in addition to a strategy called dollar cost averaging to help you make money more consistently and ride out any turbulence. So guys, Fundamental versus Technical Analysis: We talked about this a little bit earlier on, but let me dive deeper. Fundamental Analysis evaluates Stocks by attempting to measure their intrinsic value. Fundamental analysis study everything from the overall economy and Industry conditions to the financial strength and management of individual companies.

Now, technical analysis differs from fundamental analysis if you choose to use Ta. Some people don't care at all about fundamental analysis. They might look at the market cap to see if it's like a lower cap company stock to see how much you know volatility or liquidity. There is.

Technical analysis just refers to a lot of the statistical Trends such as the movement in a stock price and volume. And like I just said, they do not attempt to measure a Security's intrinsic value, but instead they try to use charts to identify patterns. and Trends to suggest what a stock will do in the future. so Ta is a little bit harder in my opinion.

I Think fundamental analysis is a lot easier to do. The research is very straightforward and once you understand just the basics like P E ratio Market cap the size, any feature, earnings, or even just like the developments that a company might do, so say Chipotle is coming out with the best tasting burrito and it's actually really good and no one knows about it right now. You could say arguably that's a bit more fundamental analysis. You had to do some more research on the back end to know that something new is going to happen with Ta.

You're looking at lines and charts. You're looking at what I showed you earlier. the Bollinger Bands the moving averages the EMAs exponential moving averages, and if you're looking at those lines, you'll also be looking at candles. so you'll see support levels resistance levels.

So if a stock is reaching a resistance level and it's about to break it, and if it's going to come down and hit a support level, that that's what Ta is, we're not going to go into the nitty-gritty stuff of it now to become a proper fundamental analysis. There are a few things that you're going to need to learn and know how to read, and this is also going to include financial statements, balance sheets, income statements, cash flow statements, and there are also going to be other things such as key financial data which includes earnings per share or EPS the P E ratio, the price to earning ratio Bill the price to earnings to growth ratio, and other Financial metrics like The Price to Book ratio the return on equity And you can also if you really wanted to do a deeper dive on their 10K report or their annual financials or even their quarterly financials to get an idea on if a company's balance sheet reflects what their stock price is for. the technical analysis chart I pretty much just covered a lot of what you need to know. They're going to use trend lines Candlestick Fundamentals: They're going to be going through patterns on the chart.

They're going to look at time frames, how it's doing on the 50-minute five minute. Mark Sometimes they look at like the 30 second Mark if you're a little ambitious on trying to get all the data and they'll use indicators a lot for me guys. Look, you don't need to be the best at one single thing because some people say you know and they swear by technical analysis being the best way to trade stocks. I'd say know the basics of both.

You don't need to always be going through a company's uh, quarterly financials to know whether or not it's a decent buy. You can just do a brief look on how their balance sheet looks or whether or not a company is having good cash flow and then getting an idea on whether or not based on the charts to see whether or not today is a good time to buy or maybe if it's at an all-time high and it's above all its moving averages, you might want to wait a little bit later on if all this is too hard and it's overwhelmingly difficult for you to choose a stock. you can also always just buy an index. Indexes are pretty much a collection of different stocks, so instead of having to make the decision on buying one stock if you're buying a group or an index that has like a hundred stocks within it, if that entire index moves forward and does well with the economy, you would still be making money moving forward.

It's so important though, regardless for you to stay informed about market news and Company developments. The reason for this is that when you're making informed investment decisions, you want to know about how the company is doing and this year will give you better information on whether it's time to buy, sell, or hold its stock. On top of that, you can identify some buying opportunities. and by being up to date on market news, you'll know know exactly if you've missed anything or something like new technology might be coming up to disrupt an industry.

Investing always involves risk. For example, if you hear news at a company you own in stock, is facing regulatory or legal issues, or like a lawsuit, you may want to sell your shares to avoid potential losses in the future. Last but not least, by staying informed about markets, you're also going to know exactly how the broader Market is going to work. You can see different Trends and impacts on what it would have on your current Investments Ultimately, this year is going to help you make more Strategic investment decisions and potentially achieve better returns.

Now guys, real quick though, there's going to be four steps to creating your own stock portfolio if you want to start today. Now with all the things that I mentioned so far in this video: Determine that risk tolerance. Do those exercises and know exactly how much money you can put in and how much money you want to make within the market. By doing that, you can then allocate your portfolio and then you can rebalance periodically so decide.

Okay, if I want to only invest a thousand dollars into the market, let me figure out a good pie. Should I Do 30 tech stocks should I Do Travel stocks? What are you most bullish on? If you want to be more conservative, you can go for dividend stocks where they have huge market caps. They got a lot of money on their balance sheet. They're not going to make any huge movement to the upside in the future, but you know it's a safer stock where for the next 30 years if your goal is to just make money and not lose a cent, you'll know that you'll be on track by following that.

So those are four quick steps to creating your own stock portfolio. But moving forward. one of my favorite ways to invest into the market is the dollar cost average. If you don't know what dollar cost averaging is, it's very simple.

Imagine that you have a piggy bank and you want to save some money every single week. So say that no matter what happens, you're putting five dollars in every single week. And when the price is low, you put in five dollars. When the price is hot, you put in five dollars.

Over time, it averages it out I Know it can be scary to buy and out of stock today, so if you don't want to put in a hundred dollars into Apple stock, right at this moment, you could decide to put in ten dollars into Apple stock for the course of an entire month. The benefit of this is that it's going to help you get a better average price price over the long term and reduce the risk of buying all your shares at a higher price. So if the market does go down, you'll be okay because you balance out the risk by knowing that tool. You should also know this, which are six essential tips for successful investing.

Number one: I've said this a lot now, but it's so important to keep emotions out of your investment. Decision making and you want to almost trade like a robot. Don't get mad, don't get too happy, just trade and make the gains. You always want to have a plan for each trade you make.

So if you decide to buy Apple stock, when are you going to sell A lot of people buy without having an exit plan if you decide. Okay, if Apple hits 200 and I make a 50 profit, is that good enough for you to sell? Do not get overly greedy and have a plan that also goes into reviewing your trades. and Investments periodically some people check far too often. Some people check not too often enough.

Depending on how you feel emotionally, you know that you can check maybe every week or maybe at the end of a work day. But do not overly check and do not check. Not enough diversify. Do not put all your eggs in one basket.

Don't go all in on one stock. Trust me. I've been there I've done that. You want to make sure that you have a well-keen portfolio of different Industries within what you own.

If you do decide to make gains, say you make a thousand dollars your first month investing to the stock market. Consider reinvesting your gains to maximize your profit potential. This goes into compound interest, guys. Stay informed on market.

news, company developments, and economics. If you have no idea what's going on in the world, you might not have the edge within the market. and there are going to be a lot of websites. Even news channels will give you an idea on what's going on.

And if you hate doing this type of research like I said, look into indexes, look into different stock market, invest in groups and what I think works really well is to find. Community When I talk about Community It's about knowing a group of friends who like to research this stuff and invest as well because when you do it, it can get pretty lonely. It can get pretty boring at times I know back when I first started when I was in community college or even just in high school trading. Basic: Robin Hood Stocks I had no one I could ask like what certain things are about and these type of YouTube videos didn't exist either Community is huge and with the power of the internet like Discord servers and whatnot, you have complete access to it.

And by the way guys, if you are looking to join the community, I'll go ahead and create one as well, so be sure to check out the link Down Below in the description, get access PowerPoint I'll also send you an invitation to a Discord group as well in a follow-up email if you guys want to have a chance to talk to other peers who are interested in investing. now. we talked about this earlier, but we didn't really go in depth on it. But every time you do make a trade, you're gonna have to pay short-term capital gains or losses.

or you're gonna have to pay that long-term capital gains or losses. So short term capital gains and losses is going to be holding the investment for less than one year and it's going to be taxed as ordinary income. If you're not in a high tax bracket and you know you're making like less than thirty five thousand dollars per year, you're not going to be taxed that much. It's not going to kill you and you're still making profits.

So don't let taxes scare you away from investing. But please consult your local CPA on this. uh, whoever your advisor is I'm not a tax account on professional or CPA I hire someone else for my own books too. What I do know though is I Try to hold my assets for a minimum of one year and that way I can get taxed at roughly half the rate.

Additional resources. If you guys want to learn more about the fundamentals and basics of investing, check out the Intelligent Investor by Benjamin Graham It is not an easy book. It is very long. It is kind of boring in my opinion, but it's still a lot of great fundamentals.

I Think anything with Warren Buffett is really good too, just because he has the pure fundamentals of what investing for the long period of time looks like and how to find success in that. uh Rich that poor Dad by Robert Kiyosaki something I read many, many years ago which I wanted to add to this list and including that, it's going to be the Psychology of Money by Morgan Housel. And on top of that guys, if you're looking for some additional resources, check out Investopedia for any type of questions you have about you know terms or doing more research, this is great I use Investopedia a lot to even learn these days and Finvis if you want to learn more about company data. Financials any like that from the biz.

not great. Aesthetically, the UI is terrible, but it's been around for a long time and a lot of the pros still use it today. So conclusion and takeaways. not much here.

guys. join a community so you know I like following Wall Street bets on Instagram It makes investing more fun because you know you'll get hit with like the Nancy Pelosi memes. You'll see like different things that are happening within the world aside from just making money within the market. You can get a few laughs too.

And the big takeaway is that the stock market is going to be volatile and all your Investments are going to carry some type of risk. I'm not a financial advisor. This here is just to educate you and hopefully by watching this video. Now to this end, you have a much better idea on how to get started within the stock market.

If you're afraid to get started and you do need help, this is why financial advisors exist. A lot of people have free access to it and there's a lot of tools, companies, brokerages, and apps that do the investing for you. Where if you don't want to do the research, you want to keep it easy. There are things as an example, like Acorns You, you know.