Top 6 MISTAKES Beginners In The Stock Market Make
Manage episode 343970339 series 3159250
AVOID these 6 MISTAKES IN THE STOCK MARKET! In this video, I will break down 6 mistakes i've made when I first started investing, this way you can avoid as a beginner.
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Hey there its jaz! So when I first started investing at the age of 21 I had no clue what I was doing, so in this video I will be breaking down 6 investing mistakes I’ve made in the stock market! And I wish someone told me these and broke them down when I first started to invest in the stock market, so hopefully I bring you value! Now I do want to get this out of the way, which is that i’m not a financial advisor, these 6 lessons I’ve learned came from personal experience and I’m making this video for entertainment purposes. 1 . Not having enough cash in hand for Discount days When it’s Black Friday and people buy a flat screen tv for half the price, they know they got a good deal. It’s the same way with the stock market Its important to be investing a fixed amount in the stock market every Month to be able to create a compounding effect But there are going to be days that the market crashes and you’ll be able to buy more Index Funds, ETF's on a discount the market fluctuates and you will be able to buy more of the investments you want when its red 2. Selling Stocks Short term capital gain taxes!! I didn’t know anyone who invested in the stock market so I didn’t know that you get taxed when you sell stocks! Until I started to do my own research and investors like Graham Stephan announced that he keeps his stock long-term because if not he would get taxed for short term capital gains What is the main difference between short term and long term Its how long you hold Short = 1 year or less - get taxed between 30%-37% on your gains So if you bought apple at 100 and sold it for 250 you will get taxed 30% on the 150 , you have to pay 45$ on taxes Long term= 1 year or more, apple 100 and sold it for 250 at 15% you have to pay only $22.50 of taxes 3.Listening to people’s opinions on what to invest, instead of educating myself When you first start investing, it’s overwhelming because in the finance world they use fancy words to get you invest your money into certain investments. You shouldn’t follow the crowd but thinking long term and what you want out of your investments 4. Not paying attention to fee’s because you don’t know better Mutual funds 1% -2% Expense Ratio are super high when it comes to fee's when you're investing in the stock market as a beginner!! 5. Not Diversifying your investments Before I started investing in the stock market, I would focus on diversifying companies. But then I realized that I should analyze companies based on if they are a growth stock or a Dividend stock. 6. Investing in companies that I don’t believe in When I first started investing, I would buy "cheap" companies because I wanted to make a profit from them.
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