How to Invest Your First $100 in the Stock Market
If you’ve never dabbled in the stock market, it can be overwhelming trying to figure out where to start. Unfortunately, it’s difficult finding a step-by-step guide to get started. Well, look no further!
Take these steps below and you’ll be well on your way to invest your first $100. Of course, investing in the stock market requires hard work and research on individual companies and market dynamics to maximize your gains and minimize your losses—lucky for you, Newbee does all that and sends stock recommendations each month to help you grow your nest egg. Join the exclusive club and start building wealth today!
Step 1: Open a brokerage account
There are many brokerage firms to choose from—E*TRADE, Fidelity and Ronbinhood, just to name a few. Since many of the Newbees are using Robinhood, Newbee recommends it for its ease of use and modern feel. Open an account by signing up on their website and download the mobile app.
Step 2: Fund your brokerage account
There are a few different ways you can do this—the most common way is to connect your bank account and set up automatic withdrawals to keep funding your account effortlessly without having to think about it or you can manually transfer money periodically. Most companies nowadays, will let you take a picture of a check and deposit it that way too. Whatever suits you best!
Step 3: Pick a stock to invest in.
There are thousands of stocks to choose from—ranging from downright worthless stocks to very high quality stocks such as Apple and Microsoft. There are plenty of stocks with share prices below $100 although the stock price doesn’t really mean anything since companies do stock splits all the time. For example, Apple, which has done stock splits many times has a share price of around $130 as of this post but companies that are worth a tenth of Apple have higher share prices. In other words, don’t judge the stock of a company by its share price. A good place to start picking the right stocks is by joining the exclusive Newbee Club where you’ll get high quality stock picks recommended to you each month.
Don’t worry if none of it makes sense at the beginning. I was completely lost when I started six years ago. I started with $200 and used it to practice. As I gained more knowledge, I got more comfortable and added larger sums of money to invest on a regular basis. Once I got serious, I grew my portfolio to $100,000 in less than two years.
You don’t need a lot of money to start investing in the stock market. All you need is consistency and patience to let your money grow through compounding. Happy investing!
