Stuck Somewhere?

How do I start investing in the stock market as a beginner?

1. Buy the right investment

Buying the right stock is so much easier said than done. Anyone can see a stock that’s performed well in the past, but anticipating the performance of a stock in the future is much more difficult. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyse a company and manage the investment.

2. Avoid individual stocks if you are a beginner

Everyone has heard someone talk about a big stock win or a great stock pick.

“What they forget about is that often they are not talking about those particular investments that they also own that did very, very poorly over time. “So sometimes people have an unrealistic expectation about the kind of returns that they can make in the stock market. And sometimes they confuse luck with skill. You can get lucky sometimes picking an individual stock. It’s hard to be lucky over time and avoid those big downturns also.”

3. Create a diversified portfolio

One of the key advantages of an index fund is that you immediately have a range of stocks in the fund.

Diversification is important because it reduces the risk of any one stock in the portfolio hurting the overall performance very much, and that actually improves your overall returns. In contrast, if you are buying only one individual stock, you really do have all your eggs in one basket.

When it comes to diversification, that doesn’t just mean many different stocks. It also means investments that are spread among different asset classes – since stock in similar sectors may move in a similar direction for the same reason.

4. Be prepared for a downturn

The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time. You’ll have to steel yourself to handle these losses, or you’ll be apt to buy high and sell low during a panic.

As long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might.

5. Try a stock market simulator before investing real money

One way to enter the world of investing without taking risk is to use a stock simulator. Using an online trading account with virtual money won’t put your real money at risk. You will also be able to determine how you would react if this really were your money that you gained or lost.

6. Stay committed to your long-term portfolio

One strategy for beginners is to set up a calendar and predetermine when you will be evaluating your portfolio. Sticking to this guideline will prevent you from selling out of a stock during some volatility – or not getting the full benefit of a well-performing investment.

7. Start now

Choosing the perfect opportunity to jump in and invest in the stock market typically doesn’t work well. Nobody knows with 100 percent certainty the best time to get in. And investing is meant to be a long-term activity. There is no perfect time to start.

“One of the core points with investing is not just to think about it, but to get started,” Keady says. “And start now. Because if you invest now, and often over time, that compounding is the thing that can really drive your results. If you want to invest, it’s very important to actually get started and have … an ongoing savings program, so that we can reach our goals over time.”

Should I start with stocks or mutual funds?

If you are a new investor with little or no experience in the stock markets, it is best to start your equity investments through mutual funds as not only is the risk comparatively lesser, you also have a fund manager managing your investment

How do I start investing in the stock market as a beginner?

1. Buy the right investment

Buying the right stock is so much easier said than done. Anyone can see a stock that’s performed well in the past, but anticipating the performance of a stock in the future is much more difficult. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyse a company and manage the investment.

2. Avoid individual stocks if you are a beginner

Everyone has heard someone talk about a big stock win or a great stock pick.

“What they forget about is that often they are not talking about those particular investments that they also own that did very, very poorly over time. “So sometimes people have an unrealistic expectation about the kind of returns that they can make in the stock market. And sometimes they confuse luck with skill. You can get lucky sometimes picking an individual stock. It’s hard to be lucky over time and avoid those big downturns also.”

3. Create a diversified portfolio

One of the key advantages of an index fund is that you immediately have a range of stocks in the fund.

Diversification is important because it reduces the risk of any one stock in the portfolio hurting the overall performance very much, and that actually improves your overall returns. In contrast, if you are buying only one individual stock, you really do have all your eggs in one basket.

When it comes to diversification, that doesn’t just mean many different stocks. It also means investments that are spread among different asset classes – since stock in similar sectors may move in a similar direction for the same reason.

4. Be prepared for a downturn

The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time. You’ll have to steel yourself to handle these losses, or you’ll be apt to buy high and sell low during a panic.

As long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might.

5. Try a stock market simulator before investing real money

One way to enter the world of investing without taking risk is to use a stock simulator. Using an online trading account with virtual money won’t put your real money at risk. You will also be able to determine how you would react if this really were your money that you gained or lost.

6. Stay committed to your long-term portfolio

One strategy for beginners is to set up a calendar and predetermine when you will be evaluating your portfolio. Sticking to this guideline will prevent you from selling out of a stock during some volatility – or not getting the full benefit of a well-performing investment.

7. Start now

Choosing the perfect opportunity to jump in and invest in the stock market typically doesn’t work well. Nobody knows with 100 percent certainty the best time to get in. And investing is meant to be a long-term activity. There is no perfect time to start.

“One of the core points with investing is not just to think about it, but to get started,” Keady says. “And start now. Because if you invest now, and often over time, that compounding is the thing that can really drive your results. If you want to invest, it’s very important to actually get started and have … an ongoing savings program, so that we can reach our goals over time.”

Should I start with stocks or mutual funds?

If you are a new investor with little or no experience in the stock markets, it is best to start your equity investments through mutual funds as not only is the risk comparatively lesser, you also have a fund manager managing your investment

How do I start investing in the stock market as a beginner?

1. Buy the right investment

Buying the right stock is so much easier said than done. Anyone can see a stock that’s performed well in the past, but anticipating the performance of a stock in the future is much more difficult. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyse a company and manage the investment.

2. Avoid individual stocks if you are a beginner

Everyone has heard someone talk about a big stock win or a great stock pick.

“What they forget about is that often they are not talking about those particular investments that they also own that did very, very poorly over time. “So sometimes people have an unrealistic expectation about the kind of returns that they can make in the stock market. And sometimes they confuse luck with skill. You can get lucky sometimes picking an individual stock. It’s hard to be lucky over time and avoid those big downturns also.”

3. Create a diversified portfolio

One of the key advantages of an index fund is that you immediately have a range of stocks in the fund.

Diversification is important because it reduces the risk of any one stock in the portfolio hurting the overall performance very much, and that actually improves your overall returns. In contrast, if you are buying only one individual stock, you really do have all your eggs in one basket.

When it comes to diversification, that doesn’t just mean many different stocks. It also means investments that are spread among different asset classes – since stock in similar sectors may move in a similar direction for the same reason.

4. Be prepared for a downturn

The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time. You’ll have to steel yourself to handle these losses, or you’ll be apt to buy high and sell low during a panic.

As long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might.

5. Try a stock market simulator before investing real money

One way to enter the world of investing without taking risk is to use a stock simulator. Using an online trading account with virtual money won’t put your real money at risk. You will also be able to determine how you would react if this really were your money that you gained or lost.

6. Stay committed to your long-term portfolio

One strategy for beginners is to set up a calendar and predetermine when you will be evaluating your portfolio. Sticking to this guideline will prevent you from selling out of a stock during some volatility – or not getting the full benefit of a well-performing investment.

7. Start now

Choosing the perfect opportunity to jump in and invest in the stock market typically doesn’t work well. Nobody knows with 100 percent certainty the best time to get in. And investing is meant to be a long-term activity. There is no perfect time to start.

“One of the core points with investing is not just to think about it, but to get started,” Keady says. “And start now. Because if you invest now, and often over time, that compounding is the thing that can really drive your results. If you want to invest, it’s very important to actually get started and have … an ongoing savings program, so that we can reach our goals over time.”

Should I start with stocks or mutual funds?

If you are a new investor with little or no experience in the stock markets, it is best to start your equity investments through mutual funds as not only is the risk comparatively lesser, you also have a fund manager managing your investment

How do I start investing in the stock market as a beginner?

1. Buy the right investment

Buying the right stock is so much easier said than done. Anyone can see a stock that’s performed well in the past, but anticipating the performance of a stock in the future is much more difficult. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyse a company and manage the investment.

2. Avoid individual stocks if you are a beginner

Everyone has heard someone talk about a big stock win or a great stock pick.

“What they forget about is that often they are not talking about those particular investments that they also own that did very, very poorly over time. “So sometimes people have an unrealistic expectation about the kind of returns that they can make in the stock market. And sometimes they confuse luck with skill. You can get lucky sometimes picking an individual stock. It’s hard to be lucky over time and avoid those big downturns also.”

3. Create a diversified portfolio

One of the key advantages of an index fund is that you immediately have a range of stocks in the fund.

Diversification is important because it reduces the risk of any one stock in the portfolio hurting the overall performance very much, and that actually improves your overall returns. In contrast, if you are buying only one individual stock, you really do have all your eggs in one basket.

When it comes to diversification, that doesn’t just mean many different stocks. It also means investments that are spread among different asset classes – since stock in similar sectors may move in a similar direction for the same reason.

4. Be prepared for a downturn

The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time. You’ll have to steel yourself to handle these losses, or you’ll be apt to buy high and sell low during a panic.

As long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might.

5. Try a stock market simulator before investing real money

One way to enter the world of investing without taking risk is to use a stock simulator. Using an online trading account with virtual money won’t put your real money at risk. You will also be able to determine how you would react if this really were your money that you gained or lost.

6. Stay committed to your long-term portfolio

One strategy for beginners is to set up a calendar and predetermine when you will be evaluating your portfolio. Sticking to this guideline will prevent you from selling out of a stock during some volatility – or not getting the full benefit of a well-performing investment.

7. Start now

Choosing the perfect opportunity to jump in and invest in the stock market typically doesn’t work well. Nobody knows with 100 percent certainty the best time to get in. And investing is meant to be a long-term activity. There is no perfect time to start.

“One of the core points with investing is not just to think about it, but to get started,” Keady says. “And start now. Because if you invest now, and often over time, that compounding is the thing that can really drive your results. If you want to invest, it’s very important to actually get started and have … an ongoing savings program, so that we can reach our goals over time.”

Should I start with stocks or mutual funds?

If you are a new investor with little or no experience in the stock markets, it is best to start your equity investments through mutual funds as not only is the risk comparatively lesser, you also have a fund manager managing your investment

How do I start investing in the stock market as a beginner?

1. Buy the right investment

Buying the right stock is so much easier said than done. Anyone can see a stock that’s performed well in the past, but anticipating the performance of a stock in the future is much more difficult. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyse a company and manage the investment.

2. Avoid individual stocks if you are a beginner

Everyone has heard someone talk about a big stock win or a great stock pick.

“What they forget about is that often they are not talking about those particular investments that they also own that did very, very poorly over time. “So sometimes people have an unrealistic expectation about the kind of returns that they can make in the stock market. And sometimes they confuse luck with skill. You can get lucky sometimes picking an individual stock. It’s hard to be lucky over time and avoid those big downturns also.”

3. Create a diversified portfolio

One of the key advantages of an index fund is that you immediately have a range of stocks in the fund.

Diversification is important because it reduces the risk of any one stock in the portfolio hurting the overall performance very much, and that actually improves your overall returns. In contrast, if you are buying only one individual stock, you really do have all your eggs in one basket.

When it comes to diversification, that doesn’t just mean many different stocks. It also means investments that are spread among different asset classes – since stock in similar sectors may move in a similar direction for the same reason.

4. Be prepared for a downturn

The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time. You’ll have to steel yourself to handle these losses, or you’ll be apt to buy high and sell low during a panic.

As long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might.

5. Try a stock market simulator before investing real money

One way to enter the world of investing without taking risk is to use a stock simulator. Using an online trading account with virtual money won’t put your real money at risk. You will also be able to determine how you would react if this really were your money that you gained or lost.

6. Stay committed to your long-term portfolio

One strategy for beginners is to set up a calendar and predetermine when you will be evaluating your portfolio. Sticking to this guideline will prevent you from selling out of a stock during some volatility – or not getting the full benefit of a well-performing investment.

7. Start now

Choosing the perfect opportunity to jump in and invest in the stock market typically doesn’t work well. Nobody knows with 100 percent certainty the best time to get in. And investing is meant to be a long-term activity. There is no perfect time to start.

“One of the core points with investing is not just to think about it, but to get started,” Keady says. “And start now. Because if you invest now, and often over time, that compounding is the thing that can really drive your results. If you want to invest, it’s very important to actually get started and have … an ongoing savings program, so that we can reach our goals over time.”

Should I start with stocks or mutual funds?

If you are a new investor with little or no experience in the stock markets, it is best to start your equity investments through mutual funds as not only is the risk comparatively lesser, you also have a fund manager managing your investment

How do I start investing in the stock market as a beginner?

1. Buy the right investment

Buying the right stock is so much easier said than done. Anyone can see a stock that’s performed well in the past, but anticipating the performance of a stock in the future is much more difficult. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyse a company and manage the investment.

2. Avoid individual stocks if you are a beginner

Everyone has heard someone talk about a big stock win or a great stock pick.

“What they forget about is that often they are not talking about those particular investments that they also own that did very, very poorly over time. “So sometimes people have an unrealistic expectation about the kind of returns that they can make in the stock market. And sometimes they confuse luck with skill. You can get lucky sometimes picking an individual stock. It’s hard to be lucky over time and avoid those big downturns also.”

3. Create a diversified portfolio

One of the key advantages of an index fund is that you immediately have a range of stocks in the fund.

Diversification is important because it reduces the risk of any one stock in the portfolio hurting the overall performance very much, and that actually improves your overall returns. In contrast, if you are buying only one individual stock, you really do have all your eggs in one basket.

When it comes to diversification, that doesn’t just mean many different stocks. It also means investments that are spread among different asset classes – since stock in similar sectors may move in a similar direction for the same reason.

4. Be prepared for a downturn

The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time. You’ll have to steel yourself to handle these losses, or you’ll be apt to buy high and sell low during a panic.

As long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might.

5. Try a stock market simulator before investing real money

One way to enter the world of investing without taking risk is to use a stock simulator. Using an online trading account with virtual money won’t put your real money at risk. You will also be able to determine how you would react if this really were your money that you gained or lost.

6. Stay committed to your long-term portfolio

One strategy for beginners is to set up a calendar and predetermine when you will be evaluating your portfolio. Sticking to this guideline will prevent you from selling out of a stock during some volatility – or not getting the full benefit of a well-performing investment.

7. Start now

Choosing the perfect opportunity to jump in and invest in the stock market typically doesn’t work well. Nobody knows with 100 percent certainty the best time to get in. And investing is meant to be a long-term activity. There is no perfect time to start.

“One of the core points with investing is not just to think about it, but to get started,” Keady says. “And start now. Because if you invest now, and often over time, that compounding is the thing that can really drive your results. If you want to invest, it’s very important to actually get started and have … an ongoing savings program, so that we can reach our goals over time.”

Should I start with stocks or mutual funds?

If you are a new investor with little or no experience in the stock markets, it is best to start your equity investments through mutual funds as not only is the risk comparatively lesser, you also have a fund manager managing your investment

How do I start investing in the stock market as a beginner?

1. Buy the right investment

Buying the right stock is so much easier said than done. Anyone can see a stock that’s performed well in the past, but anticipating the performance of a stock in the future is much more difficult. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyse a company and manage the investment.

2. Avoid individual stocks if you are a beginner

Everyone has heard someone talk about a big stock win or a great stock pick.

“What they forget about is that often they are not talking about those particular investments that they also own that did very, very poorly over time. “So sometimes people have an unrealistic expectation about the kind of returns that they can make in the stock market. And sometimes they confuse luck with skill. You can get lucky sometimes picking an individual stock. It’s hard to be lucky over time and avoid those big downturns also.”

3. Create a diversified portfolio

One of the key advantages of an index fund is that you immediately have a range of stocks in the fund.

Diversification is important because it reduces the risk of any one stock in the portfolio hurting the overall performance very much, and that actually improves your overall returns. In contrast, if you are buying only one individual stock, you really do have all your eggs in one basket.

When it comes to diversification, that doesn’t just mean many different stocks. It also means investments that are spread among different asset classes – since stock in similar sectors may move in a similar direction for the same reason.

4. Be prepared for a downturn

The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time. You’ll have to steel yourself to handle these losses, or you’ll be apt to buy high and sell low during a panic.

As long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might.

5. Try a stock market simulator before investing real money

One way to enter the world of investing without taking risk is to use a stock simulator. Using an online trading account with virtual money won’t put your real money at risk. You will also be able to determine how you would react if this really were your money that you gained or lost.

6. Stay committed to your long-term portfolio

One strategy for beginners is to set up a calendar and predetermine when you will be evaluating your portfolio. Sticking to this guideline will prevent you from selling out of a stock during some volatility – or not getting the full benefit of a well-performing investment.

7. Start now

Choosing the perfect opportunity to jump in and invest in the stock market typically doesn’t work well. Nobody knows with 100 percent certainty the best time to get in. And investing is meant to be a long-term activity. There is no perfect time to start.

“One of the core points with investing is not just to think about it, but to get started,” Keady says. “And start now. Because if you invest now, and often over time, that compounding is the thing that can really drive your results. If you want to invest, it’s very important to actually get started and have … an ongoing savings program, so that we can reach our goals over time.”

Should I start with stocks or mutual funds?

If you are a new investor with little or no experience in the stock markets, it is best to start your equity investments through mutual funds as not only is the risk comparatively lesser, you also have a fund manager managing your investment

How do I start investing in the stock market as a beginner?

1. Buy the right investment

Buying the right stock is so much easier said than done. Anyone can see a stock that’s performed well in the past, but anticipating the performance of a stock in the future is much more difficult. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyse a company and manage the investment.

2. Avoid individual stocks if you are a beginner

Everyone has heard someone talk about a big stock win or a great stock pick.

“What they forget about is that often they are not talking about those particular investments that they also own that did very, very poorly over time. “So sometimes people have an unrealistic expectation about the kind of returns that they can make in the stock market. And sometimes they confuse luck with skill. You can get lucky sometimes picking an individual stock. It’s hard to be lucky over time and avoid those big downturns also.”

3. Create a diversified portfolio

One of the key advantages of an index fund is that you immediately have a range of stocks in the fund.

Diversification is important because it reduces the risk of any one stock in the portfolio hurting the overall performance very much, and that actually improves your overall returns. In contrast, if you are buying only one individual stock, you really do have all your eggs in one basket.

When it comes to diversification, that doesn’t just mean many different stocks. It also means investments that are spread among different asset classes – since stock in similar sectors may move in a similar direction for the same reason.

4. Be prepared for a downturn

The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time. You’ll have to steel yourself to handle these losses, or you’ll be apt to buy high and sell low during a panic.

As long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might.

5. Try a stock market simulator before investing real money

One way to enter the world of investing without taking risk is to use a stock simulator. Using an online trading account with virtual money won’t put your real money at risk. You will also be able to determine how you would react if this really were your money that you gained or lost.

6. Stay committed to your long-term portfolio

One strategy for beginners is to set up a calendar and predetermine when you will be evaluating your portfolio. Sticking to this guideline will prevent you from selling out of a stock during some volatility – or not getting the full benefit of a well-performing investment.

7. Start now

Choosing the perfect opportunity to jump in and invest in the stock market typically doesn’t work well. Nobody knows with 100 percent certainty the best time to get in. And investing is meant to be a long-term activity. There is no perfect time to start.

“One of the core points with investing is not just to think about it, but to get started,” Keady says. “And start now. Because if you invest now, and often over time, that compounding is the thing that can really drive your results. If you want to invest, it’s very important to actually get started and have … an ongoing savings program, so that we can reach our goals over time.”

Should I start with stocks or mutual funds?

If you are a new investor with little or no experience in the stock markets, it is best to start your equity investments through mutual funds as not only is the risk comparatively lesser, you also have a fund manager managing your investment

How do I start investing in the stock market as a beginner?

1. Buy the right investment

Buying the right stock is so much easier said than done. Anyone can see a stock that’s performed well in the past, but anticipating the performance of a stock in the future is much more difficult. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyse a company and manage the investment.

2. Avoid individual stocks if you are a beginner

Everyone has heard someone talk about a big stock win or a great stock pick.

“What they forget about is that often they are not talking about those particular investments that they also own that did very, very poorly over time. “So sometimes people have an unrealistic expectation about the kind of returns that they can make in the stock market. And sometimes they confuse luck with skill. You can get lucky sometimes picking an individual stock. It’s hard to be lucky over time and avoid those big downturns also.”

3. Create a diversified portfolio

One of the key advantages of an index fund is that you immediately have a range of stocks in the fund.

Diversification is important because it reduces the risk of any one stock in the portfolio hurting the overall performance very much, and that actually improves your overall returns. In contrast, if you are buying only one individual stock, you really do have all your eggs in one basket.

When it comes to diversification, that doesn’t just mean many different stocks. It also means investments that are spread among different asset classes – since stock in similar sectors may move in a similar direction for the same reason.

4. Be prepared for a downturn

The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time. You’ll have to steel yourself to handle these losses, or you’ll be apt to buy high and sell low during a panic.

As long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might.

5. Try a stock market simulator before investing real money

One way to enter the world of investing without taking risk is to use a stock simulator. Using an online trading account with virtual money won’t put your real money at risk. You will also be able to determine how you would react if this really were your money that you gained or lost.

6. Stay committed to your long-term portfolio

One strategy for beginners is to set up a calendar and predetermine when you will be evaluating your portfolio. Sticking to this guideline will prevent you from selling out of a stock during some volatility – or not getting the full benefit of a well-performing investment.

7. Start now

Choosing the perfect opportunity to jump in and invest in the stock market typically doesn’t work well. Nobody knows with 100 percent certainty the best time to get in. And investing is meant to be a long-term activity. There is no perfect time to start.

“One of the core points with investing is not just to think about it, but to get started,” Keady says. “And start now. Because if you invest now, and often over time, that compounding is the thing that can really drive your results. If you want to invest, it’s very important to actually get started and have … an ongoing savings program, so that we can reach our goals over time.”

Should I start with stocks or mutual funds?

If you are a new investor with little or no experience in the stock markets, it is best to start your equity investments through mutual funds as not only is the risk comparatively lesser, you also have a fund manager managing your investment

How do I start investing in the stock market as a beginner?

1. Buy the right investment

Buying the right stock is so much easier said than done. Anyone can see a stock that’s performed well in the past, but anticipating the performance of a stock in the future is much more difficult. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyse a company and manage the investment.

2. Avoid individual stocks if you are a beginner

Everyone has heard someone talk about a big stock win or a great stock pick.

“What they forget about is that often they are not talking about those particular investments that they also own that did very, very poorly over time. “So sometimes people have an unrealistic expectation about the kind of returns that they can make in the stock market. And sometimes they confuse luck with skill. You can get lucky sometimes picking an individual stock. It’s hard to be lucky over time and avoid those big downturns also.”

3. Create a diversified portfolio

One of the key advantages of an index fund is that you immediately have a range of stocks in the fund.

Diversification is important because it reduces the risk of any one stock in the portfolio hurting the overall performance very much, and that actually improves your overall returns. In contrast, if you are buying only one individual stock, you really do have all your eggs in one basket.

When it comes to diversification, that doesn’t just mean many different stocks. It also means investments that are spread among different asset classes – since stock in similar sectors may move in a similar direction for the same reason.

4. Be prepared for a downturn

The hardest issue for most investors is stomaching a loss in their investments. And because the stock market can fluctuate, you will have losses occur from time to time. You’ll have to steel yourself to handle these losses, or you’ll be apt to buy high and sell low during a panic.

As long as you diversify your portfolio, any single stock that you own shouldn’t have too much of an impact on your overall return. If it does, buying individual stocks might not be the right choice for you. Even index funds will fluctuate, so you can’t get rid of all of your risk, try how you might.

5. Try a stock market simulator before investing real money

One way to enter the world of investing without taking risk is to use a stock simulator. Using an online trading account with virtual money won’t put your real money at risk. You will also be able to determine how you would react if this really were your money that you gained or lost.

6. Stay committed to your long-term portfolio

One strategy for beginners is to set up a calendar and predetermine when you will be evaluating your portfolio. Sticking to this guideline will prevent you from selling out of a stock during some volatility – or not getting the full benefit of a well-performing investment.

7. Start now

Choosing the perfect opportunity to jump in and invest in the stock market typically doesn’t work well. Nobody knows with 100 percent certainty the best time to get in. And investing is meant to be a long-term activity. There is no perfect time to start.

“One of the core points with investing is not just to think about it, but to get started,” Keady says. “And start now. Because if you invest now, and often over time, that compounding is the thing that can really drive your results. If you want to invest, it’s very important to actually get started and have … an ongoing savings program, so that we can reach our goals over time.”

Should I start with stocks or mutual funds?

If you are a new investor with little or no experience in the stock markets, it is best to start your equity investments through mutual funds as not only is the risk comparatively lesser, you also have a fund manager managing your investment

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