How to invest in stocks on a long term period
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Most people believe that investing in stocks is just for wealthy individuals, however this is not true…
Yes, it is better if you have a lot of money and instead of purchasing a new iPhone or a new vehicle, you invest your money in stocks for a long time period, but you may make more money even if you only spend $100 each month.
Let’s check this out!
Before you make any investment decision please DYOR. I will not tell you where you should invest your money; instead, I will tell you where I have done my own study and where I am considering putting my money for a better future.
Invest in shareholders stocks.
At this stage, you must consider the brands you buy on a daily, weekly, or monthly basis. If you enjoy Coca-Cola (which I do, so we’ll talk about it further in another post), you can buy Coca-Cola stocks. If you eat at McDonald’s at least once a month, you can invest in McDonald’s stocks. I believe you understand…
You can purchase dividend-paying stocks from large corporations that you like.
Purchase stocks in well-known companies.
These are the sorts of stocks that you must purchase in order to diversify your portfolio, even if they do not generate dividends. Is it preferable to have both (dividend-paying stocks and non-dividend-paying stocks)
I encourage investing in these sorts of companies because their value will rise over time and your money will grow.
Assume you purchased one Amazon stock last year for 3.170 dollars; the stock value is now 3.420 dollars. This isn’t that much, but it gets us to the following point.
Dollar-Cost Averaging
In a nutshell, DCA is a method that says it is better to split the amount of money and enter regularly with frequent buys rather than entering once with all money or waiting for the best moment.
If you have 11.000 dollars and want to buy Tesla stocks, it is best to buy 0.5 at a time, say…monthly, rather than all at once. Because the price is currently at 1.000 dollars, but it is possible that it may drop to 980 dollars in the next days, lowering the Average Buy.
Invest just the amount of money that you are willing to lose.
Invest only the money left over after you’ve paid your bills and purchased meals. It is not advisable to use a bank credit to invest in stocks.
Finally, I encourage you to read my previous blog post about 4 ways to get passive income.
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