Business
[Disclaimer]: I am not a financial advisor. Views shared within this email and the video are solely my opinion. Please seek a professional financial advisor before making any investment decisions. All right..here it is: 1.What I normally do is try and find a good deal in the market. What is a growing consistently and a stock that is currently undervalued in the market? I find this by looking at the stock chart in my phone. Find the average value of the stock over the past 2 years and see if you can find one undervalue. 2. Why did this stock drop? Bad financial reports or because someone randomly sold out of their shares? Or in this case...an economic crash? Make sure it’s not because the company is losing tons of profits or having any major red flag issues. 3. Do I personally have experience with this company? Do I believe in the future growth of this company? Choose companies you personally can see the success of. For example, restaurants you eat at, stores that you shop from, softwares that you use...etc. 4. Do I believe other people have confidence in the company so they continue to buy this stock? Choose a company that other people also find favor with. What causes a stock to rise is not necessarily the “profitability”. It’s when other people think it’s valuable and they invest their money so the demand for the stock goes up. 5. If I invest this money can I afford to leave this in the market for at least 2-3 years? Don’t be in for the short term unless you can afford to take a higher risk. The longer you are able to leave your money in the market, the better chance you have to get a positive return. Once the stock reaches the goal you’ve set, you can trade it or hold on to cash out in later years. So let’s do an illustration: Let’s say you invest $10,000 in Red Robin @ $10 a share. Now you own 1,000 Red Robin shares($10,000/$10 per share=1,000 shares). Then, two years go by and the share price goes from $10 to $30. Now, those 1,000 shares you originally purchased are now worth $30,000(Before $10 x 1,000 shares =$10,000...After $30 x 1,000 shares =$30,000). That’s the type of opportunity we are in right now! Whatever you do...don’t put all your eggs in one basket and don’t invest money you can’t afford to lose! With that said… Happy investing, and I hope the video above brings much-needed clarity on how to invest in your first stock before the crash is over! -Adam