so the other day I got a comment on my channel and this guy was saying that he
bought six shares for $1 apiece and he was so excited that he got started and
the first thing I thought was I don't really know if you're gonna make that
much money but then the second thing I thought was you know what he should be
excited because at least he's getting started and that is the key to
everything and that's why I'm making this video today so in this video I'm
gonna quickly cover how to invest in the stock market with only a hundred bucks
because as we know right now the stock market has come down a lot and so I know
a lot of you guys are interested in starting investing and now is a really
good time to start doing that and a hundred bucks is a great way to start
now I do want you guys to know that I am NOT a financial advisor by any means and
I am just some guy on the internet so take this advice for entertainment
purposes only but hopefully you guys can learn something new about investing in
the stock market with just a little bit of money so one of the biggest things
when you're starting out investing is you're always going to be wondering how
much money do you need to start with and the reason that I'm going with $100.00
is because we can all risk that much money and even if you put it in the
stock market and you lost everything it's gonna be okay because it's only a
hundred bucks now if you were investing five hundred dollars or a thousand
dollars that's fine I don't mind you starting with that much money but I
don't want you doing that if you have high interest debt at home now if you
have high interest debt meaning credit cards or personal loans anything like
that I want you to eliminate all of those debts before you start investing
however if you only have a hundred bucks that's okay I'm gonna break the rule on
that because I want you to start investing with just a little bit of
money so that you can start learning how to invest plus the other good thing
about investing with just a hundred bucks is that most brokerages out there
are gonna allow you to start investing with them with just a hundred bucks as a
minimum now a lot of them actually start with zero which is really good because
if you just had a dollar you could technically start investing with them
but a hundred bucks is a really good starting point and that's not really
that hard to get started with all of those different brokerages now before I
start talking about everything I first want to address the main Pro and the
main con when it comes to investing in the stock market with just a hundred
bucks because there's really only one good thing and one bad thing that you're
gonna get out of just a hundred bucks so the one good thing about investing in
the stock market with just a little bit of money is
the fact that you are gonna start learning a lot about investing because
you got started because there's a lot of people out there that want to get
started investing but they never do anything about it and so that's what I'm
trying to get you to do I'm trying to get you to get off the couch get on your
computer and just invest a hundred bucks into the stock market buy some new
shares and be really excited about it and hopefully that enthusiasm drives you
to learn even more about investing because that's what I want you to be
doing I want you to learn more about investing all because you got started
and that is why I 100 dollars is the perfect place to start because that is
gonna help you start investing the way that you really should be now I got to
be honest with you guys because if you're investing in the stock market
with just a hundred bucks the true fact of the matter is that you are not gonna
make very much money because if the average stock market return is ten
percent a year and you put a hundred bucks into the
stock market then you are gonna make a lousy ten bucks over an entire 365 day
period and that is not very good considering it's just ten bucks so
that's the truth of the matter is that you are not going to be making very much
money when you're investing with just a hundred bucks but that's not the point
the point is is that I want you guys to start learning how to invest because
that is the best thing that can happen when you're just starting with a little
bit of money so the main point there is that you're never gonna get rich by
investing just a hundred bucks into the stock market but you will start learning
how to invest and that is worth a lot of money because trust me once you get
enthusiastic about it you're gonna start investing more into the stock market and
then you will start making more money and just to be clear there is no
guarantee that you're ever gonna make money investing in the stock market I'm
just going off the averages over the years so if the averages prove that you
can make 10 percent then that's probably how it's gonna be going into the future
but you never know because it is always a risk so just keep that in mind now if
you're just getting started investing the first thing that you're gonna have
to do is find a brokerage account and what a brokerage account is is it's
basically just the shopping center where you can buy and sell different shares of
different companies on the stock market and a lot of them have different pros
and cons and that's why you're gonna have to look for a specific brokerage
account that's going to work for the type of investing that you want to be
doing there are a ton of different brokerage accounts out there
they all have different pros and cons but what I would recommend you guys
start with is a brokerage account that doesn't charge any trading fees and what
this means is that whenever you buy a share or you sell a share you have to
pay a trade commission and I don't want you doing that because there's a lot of
brokerages out there that don't charge that fee and so that's what I would
start with start with a brokerage account that doesn't charge trading
commissions I recently made a video on the three
best investing apps that I prefer to use so I'll link that up here if you guys
want to learn more about specific brokerage accounts but that's not the
point of this video but you can watch that if you want to learn more about
them now once you've decided on the brokerage account that you're gonna use
the next thing you want to decide is the type of investing that you're going to
be doing and this is very straight forward you're either gonna be doing
long term investing or short term investing so just think do you want to
keep your money in for a long time or a short amount of time and that's pretty
much all there is to it I always recommend long-term investing
because statistically that is in your best interest but if you're talking
about only a hundred bucks and you just buy a few shares it really is okay if
you just sell them next week and buy some more because it is a learning curve
and that's the point here I want you to learn how to invest and if you're just
buying one share and then you're keeping it for ten years you're really not gonna
learn very much and so that's the point is that if you just have a hundred bucks
you can do some short term investing but statistically the long-term route is the
better and the best route that you can be choosing now if you're just getting
started investing you're probably wondering which companies you should
invest in and that gets pretty techie but really there's just a couple things
you can look at you can look at companies that are more stable like
coca-cola that have been around for a long time and they're gonna usually pay
out a dividend and what that means is that they'll pay you out a tiny portion
of their profits which is really handy for you as a shareholder but typically
they're not gonna grow as fast as some of the other companies which are
considered growth stocks have growth stocks these are the big ones these are
like Amazon Netflix Tesla all of these different companies that are just going
really really fast in the upward trend now there is risk associated with that
whereas if you go with another company that's been around for a long time
they're generally pretty stable and a little slower moving so it's really just
the risk you want to be taking do you want
take the tortoise route or do you want to take the hair route and that's really
just up to you now eventually you're gonna have to make the decision on which
companies you specifically want to start investing with so what I would recommend
you do is just stick with the companies that you're familiar with so for
instance if you like to shop at Walmart or Costco or you're like McDonald's then
just stick with those as your first investments because you at least know
how they operate on the front end for you as a customer so you can at least go
with that I wouldn't recommend starting out with
companies that you know nothing about because you don't know how they operate
now there is some strategy when it comes to just finding different companies
based on different statistics but I would just recommend you stick with
companies that you're familiar with that way you know what you're investing in
and then if you're really not sure who you want to invest with but you want to
start investing in the stock market you can also go with what are called ETFs
and these are exchange-traded funds and basically what these are is they're just
a group of assets okay so you can have like the top 500 companies in the United
States and they can all be jumbled up into one ETF and then you can invest in
just that one share that way you're diversified meaning you have a lot of
different outlets and different companies and that can be a safer route
and it's an also an easier decision because you don't have to base it off
individual companies you can just base it off of the ETF knowing that you want
to go with the top twenty-five hundred companies or the top five hundred or
whatever the different type of ETF is and that is a good route to go so for me
personally I invest in a few different ETFs and then I also invest in
individual companies but this all depends on what's happening in the
market so for instance sometimes an ETF might be a better value than an
individual company so if I have the money right then and there then I'm
gonna be investing in an ETF but it all just depends on what my strategy is and
what's happening in the current market because right now if you guys are paying
attention this is March of 2020 the market is doing absolutely horrible
across the entire stock market so whether you're looking at different ETFs
or individual companies everybody is low and they always say buy low sell high
and that is the best strategy that I can always give you problem is we don't know
when the bottom is we don't know if this low is even going to go lower or it's
going to go higher from here and that's always a guess and
it's always a risk but that's okay because as long as you have a long-term
approach you're probably going to be just fine and also keep in mind that if
you find a company out there that sells their shares for let's say seven bucks
apiece and then you find another company that sells their shares at 130 bucks
apiece that doesn't mean that the $7 is a better value than the company at 130
what you want to look at is the actual company and see how they're doing over
the last few years because just generally speaking if you look at the
track record of that specific company you can tell if you're buying low or
going high just based on their track record and that's all you have to be
doing as a very very beginner in the stock market so just remember that the
price per share does not indicate whether or not the share is a good value
or not you don't want to be buying shares just because they're cheap and
because you can actually afford them you want to buy shares that are a good
investment that you plan on making money on in the future and hopefully the long
term so when it comes to investing it can get really complicated really fast
and this video is just on the most basic basic end of investing so make sure to
do your research out there and find different resources to start to learn
how to invest so there's a lot of books out there there's a lot of different
YouTube videos a lot of different resources that can help you learn how to
invest this video is just about getting started so start with that hundred bucks
start investing learn how to do it and get more enthusiastic so that you can
become an investor that starts doing it for your lifetime rather than just
something you never even got started in now if you just found this channel I'm
Jason with honest finance and I make a lot of videos on different topics that
will give your life and your finances more value so if you do have an interest
in this type of content feel free to subscribe but for now I'm gonna leave
the video on the three best investing apps that you guys can watch that way
you can learn which broker do you want to start investing with so thank you for
watching have a great day