When you look at the stock market or hear someone talk about stocks, stocks, the Dow and everything else, the whole thing can feel really off-putting. So you want to keep it small, like dipping your toes in a pond, before diving into the ocean of investing. “For the first time, investors can start brushing up on financial jargon and spend time learning about the markets,” Dheerja Kaur, president of Robinhood, a financial services company, told PopSugar. “Financial news can also help you stay on top of the markets. There are a variety of resources, such as articles, podcasts, and newsletters.”
As you familiarize yourself with the stock options out there, make a list of the companies that you think have the potential to grow and make money for you. Buying stocks in this way is known as investing in individual stocks. But if you don’t feel comfortable putting all your money on one horse, so to speak, invest in stock EFTs (exchange-traded funds). When you do this, you are buying shares in multiple companies that are all similar in what they are trying to do on a business level (via Forbes). It is definitely wiser to invest a little bit in a few companies than to throw a large chunk of change on one bet. A diverse portfolio when it comes to investing gives you more opportunities to make money.