Investing in the stock market is a great way to build wealth. There are a lot of stocks available to invest in. But where to start?
Finding stocks to invest as a beginner can be overwhelming. It seems overwhelming at first. But over time, it will just be natural.
Basically, the first step is to create a watchlist of at least 5 to 10 stocks. Then check it’s price for the next 3 days. On iPhone, there is an automatically installed app called “Stocks” app, where you can add and remove stocks to track.
1. Product that You Like
Consider the products that you like or love. If you research about it, or read reviews about that product, you may have some idea about that product.
Search about the brand then add “stock” to it. If it has a stock, you can actually invest in it.
List about the products that you like then check if it has a stock. Then, you can start adding it into your watchlist. Most smart phones have a “stocks” app where you can add stocks to watch in it.
After listing 10 stocks, you can now start researching into it. The google snippet can give you a lot of information regarding that stock.
It can be clothing, gadget, makeup or food, having an idea about the product can be useful in investing. After all, you can be their target customer. Consider about the product. Is there a room for improvement? Is it better against its competitors?
For beginners, you can start just looking at stock for a couple of minutes every day. Occasionally, you can start researching that stock if you feel like it.
For the most part, just try to stick with those 10 stocks for a week or two. After looking into it, you can start adding some stocks on a business that you like.
Most famous business have stocks to it. Before investing into any stocks, consider to start researching about. Check out the article, 8 Things to Research Before Investing in a Stock.
2. Go to the nearest store
Big retail stores like Walmart have a lot of products in its shelf. Try looking around and search if it has a stock.
Many products in Walmart are produced by different businesses. These businesses are more likely to have a stock that you can invest in.
Also, you can search on Amazon what products are they selling. Literally all retail stores have many products in it. And there is a high probability that you can invest in that product.
After choosing any product, try to search its manufacturer. Then add the word “stock” on its google search.
You can add those stocks into watch list and research it later.
3. Find stocks listed in S&P 500
S&P 500 are the 500 biggest companies listed in the United States. You can look up in google “S&P 500 companies”. Some of those businesses are popular.
It can seem overwhelming, but just try to skim it and search on the stock that you know.
Another way to find stocks is by searching NASDAQ. NASDAQ contains 100 companies in it.
Another way is by searching the DOW Jones Industrials. It gives you 30 stocks to invest in.
Going through each of the 500 companies takes a lot of time. I suggest to pick 10 stocks that you have an idea of and add it to your watchlist.
After doing some research in it, you can remove it into your watch list or keep it.
Most common abbreviation used is MAGA which is Microsoft, Apple, Google, and Amazon. Most beginners start searching those 4 companies first.
There are a lot of analysis and opinions in the internet surrounding those big companies. Just remember that every stock has a case of why it will go up and why it could go down.
The most useful information in researching a stock is its 10-K and 10-Q form. It is available in the public and could be found by searching on google.
4. Look around in your town
Try walking around in your city or town. Look at the establishments and services in there. Most small businesses does not have a stock to invest in. But most franchises or branches usually have stocks that you can invest in.
At the end of the day, most business target individual customers. You could be their target market. And chances are you have some idea if they are effective or not in selling their product.
Another thing to look around is where do most people go. If many people go to that place, it may be a good candidate for a stock to invest in.
5. Services that you like
Businesses make profits by creating a product or service. Now, consider what places where you experienced a top notch service. Try searching if that company has a stock.
Also, it could be an online. Remember the last thing you bought online. Are you satisfied?
It could also be an app. Think about the satisfaction of customers.
There are a lot of businesses centered around bringing the best service possible to its customers.
After you think about a couple of businesses, try researching about it.
At the end of the day, you could ultimately be their target customer. You may have some idea on the customer service of that business.
6. Television
There are some channels that primarily talks about stocks. Consider the stocks they are talking about.
On the other hand, it does not mean that a stock will be successful just they talk about it. Think of it as presenting their case or opinion if a stock will be successful or not.
Instead, try to put that to your watch list if you are interested. When you have time in the future, you can start searching about its business.
Ultimately, nobody cares more than your money than you. Do your own research. Over time, doing research will be just an easy thing. Many things in life are hard to do at first. As you gain more experience, you can be better at investing.
7. Internet
Many articles are written as to what stocks to buy. Try adding that to your watch list if you are interested. Also, there are videos on what stocks they are interested in.
Just remember that no stock is guaranteed to succeed. Any stock can be successful or not. But there are factors that can be positive or negative for the business.
At the end of the day, all you need is around 5 to 10 stocks when you are starting. There is no need to know every stocks. There are 2,800 stocks listed in NYSE alone. You do not need to research all of those. All it takes is “finding great businesses at a fair price”(Warren Buffet).
