in this video i will show you how to invest in australian stocks starting with one thousand
dollars using self wealth if you clicked on this video then i'm guessing you're a beginner
wanting to start your investment journey and for that i congratulate you for taking
action and you've definitely come to the right place i would encourage you to watch the entire
video because it will be packed full of useful information including a checklist of things to
do before starting a brokerage account i will then go through the steps to sign up for an account and
then i will show you how to buy your first stock so if that sounds good to you let's roll the intro
what is going on my people hope you're having a good week you know when i was younger i always
thought investing was only for rich people terms like stock market and real estate were
very intimidating to me it's only later on that i found out this was definitely
not the case especially given that a lot of these rich people became rich from investing
take warren buffer for example he grew up in a modest family who were neither rich or poor
but he had a passion for investing from an early age and is now the face of stock market investing
with a net worth of over 100 billion dollars you too can get started right now like literally
right now you can start by setting up a brokerage account with self-wealth or watching this video
however before you do that we need to cover two very important checklists number one make
sure you have no bad debt bad debt is any type of debt that does not improve your financial outcome
for example credit card debt is the most popular type of bad debt for the record i think credit
cards are good if you know how to use them properly but if you are paying any sort of
interest to your credit card then you have bad debt and that is not good the stock market will
generally return about seven to ten percent on average over the long term if you invest in index
funds on the other hand credit cards charge over 20 on average that is just mind-blowing to me
therefore in this instance you are better off paying down the credit card debt and receiving a
guaranteed 20 return also the psychological relief of not having bad debt cannot be understated
other types of debt include car loans and personal loans i would encourage you to stay
away from them in general but if you already have them then please focus on paying them off
before even starting to think about investing number two make sure you have an emergency fund
investing in the stock market is a long-term gain so the best practice is not to put any
money in there that you need in the short term you don't want to be forced into a scenario where you
have to sell stocks during unfavorable market conditions because you urgently need the money
for this reason always set up an emergency fund for that reason
an emergency unfortunately a two-week trip to bali does not count as an emergency this fund is
for a very rainy day that cannot be predicted for example you or your partner suddenly lose your job
the emergency fund should cover all your expenses for several months to give you time to get back on
your feet i would recommend at least three months worth of expenses but six months is the most ideal
and please don't think this won't happen to you the last 18 months has shown us how quickly our
lives can be flipped upside down so please save up for an emergency fund before you start investing
alright so if you have no bad debt and you've already stayed up for emergency fund then you're
ready to buy your first stock in order to do this you will need to sign up for an online brokerage
account there are many online brokers in australia to choose from and i'll do a future video
comparing them all but today we will be using self wealth which incidentally is my favorite
broker in australia this is the broker that i use because they meet the two requirements i look for
in a broker security and low brokerage fees and i'll elaborate more on these later in the video
now let's create our self-worth account by the way if you would like five free trades then use
the link i put down below to sign up for self wealth of course you don't have to use my link
if you have a friend that already uses self off ask them to send you a referral code and you'll
both get five free trades one trade is worth 9.50 so that is a decent sign up bonus so for the next
part i'll switch to a voiceover so you can see the exact steps on how to create your self-worth
account alrighty so if you used my referral link or your friend's referral link it will
take you to this page make sure you can see the five free trades so you're locking in that bonus
so you just type in your email and a password and it will send a verification email
so just open your email and click the link they provided
it will take you back to this page and just like any other application forms you just enter your
details once you are done it will take you to this page to get your driver's license tax file number
and bank account ready for the next step once you click start application it should
take you to a screen like this now you need to enter your application type for most people it
will be individual meaning any stocks you buy will be 100 owned by you and therefore you are
also responsible for any taxes in the future if you choose joint then you and your partner
will both own 50 of all stocks and will be liable for 50 for all future taxes i don't
think the other options are applicable to most of us so i'll go ahead and select individual
in the next page you confirm a few more details including your date of birth once you've filled
in the details and click next it will create your application page and you'll be redirected to this
page you will have to continue providing all the details they asked for including your tax
file number address and bank account details you won't need my help with the next parts as they are
pretty self-explanatory so just keep following the steps until you get to the final page and
click submit once you are done self-wealth will take two business days to approve your application
so you just have to wait once you have been approved you'll be provided with a
hint which stands for holder identification number remember earlier i mentioned security was one of
the factors in choosing a broker well a holder identification number is a unique number that
identifies you as a chess sponsored shareholder with a broker chess sponsored means you own the
shares outright and there's no custodial ownership between yourself and the broker in a worst-case
scenario where self-worth went bankrupt you will not lose your shares as they are registered
under your name not all brokers provide this some offer cheaper brokerage fees but no chair sponsor
personally i'm willing to pay extra for the extra security a hidden usually starts with
a letter x followed by 10 numbers all your chess sponsored shares are represented by a single hen
provided they're under the same brokerage account for example if you bought nab
calls and afterpay using self wealth they are all automatically consolidated under the same number
and in case you're wondering yes you can have more than one hint number under your name if you have
multiple brokerage accounts they will each provide a unique hint so now your brokerage account has
been approved and you're ready to buy your first stock congratulations first thing to note is the
asx is only open at certain times it is open from 10 am to 4 pm eastern standard times monday to
friday i'll put the local open and close time on the screen for every capital city of each state
in australia by the way i am curious to know what kind of stocks you guys are interested in buying
so leave a comment down below on the stocks that you are interested in and i'll give you my opinion
on them you also need to fund your account before you can invest back in the days it would take at
least one business day for the funds to transfer and that was my biggest complaint with self-worth
but luckily for you at the time of recording this video self-world have introduced an instant
transfer feature that should take seconds for funds to clear so that is a great new feature now
that you have money in your account i will show you how to buy your first stock in this example
we will use vas which is an etf that tracks the top 300 companies on the australian stock exchange
so you type in vas in this stock search bar and it will bring you to this page don't be intimidated
by all the boxes and numbers it's actually very simple once you know what everything is bid is
what the buyers are willing to buy this stock for offer is what the sellers are willing to sell this
stock for open is what the stock's opening price was that market open low is what the lowest price
of the day was high is what the highest price of the day was the volume is the number of shares
traded in the day and the close is what the stock price finished at it's all quite self-explanatory
so now we will click buy and it will take us to this page you can either buy the shares in
quantity or value quantity is number of shares so if i port 11 units and choose market then limit
you'll buy 11 shares at about 1085 dollars plus 9.50 brokerage market then limit means
the best current market price will be used to buy the shares in this case it will be
about 98.65 per share meaning you'll likely pay a little bit extra than the current listed price
then you click review order and confirm and that order should go through if the market was open
since this is just a demonstration the market isn't open right now and the order won't go
through you can also choose to buy by value so say you want to buy one thousand dollars worth of vas
you can enter the amount and choose market then limit and since you can't buy fractional shares
with self-worth it will automatically select 10 shares at 986.50 in total plus brokerage so
basically it just calculates the closest amount of units you can buy for how much you have
if you want to save a bit of money you can choose a limit which gives you the ability to put the
price you would like to pay say you put 95 dollars per share you can see the total will be 1045
plus brokerage you can then set the expiry date up to six months and the order will remain there
until the share price drops to 95 the problem is it may never drop to that price so what i'd
like to do is put a limit order for the offer price in this case it would be 96.25 per share
and if the market was open this order should go through straight away at this price
this is the method i would recommend for most as you are not at the mercy of small
market fluctuations and you can guarantee the order will go through and that's about it once
your trade goes through cellport will send you an email confirming your trade and ownership to your
new shares one last thing to note is self-worth charges a flat 9.50 brokerage per trade no matter
the size of the order this is very good value compared to all the other brokers this combined
with chess sponsorship that i previously mentioned is the reason self-worth is my go-to aussie broker
so there you have it congratulations guys you've learned how to make your first investment in
shares if you're a beginner to shares then the hardest part is getting started it may
seem daunting at first but trust me after you buy your first shares and see it grow over time
you will start to develop good financial habits and will be motivated to grow your portfolio
i hope this video helped you out and if it did please give it a like so i can reach more viewers
and please consider subscribing to this channel as i'll release a lot more videos like this in
the future so until next time my name is brian and i hope you make a lot of money