Investing in Stocks for Beginners

The first step in starting to invest is overcoming your biases. Ask yourself: what are my biases regarding investing in stocks?

What Are Stocks?

Stocks – or shares – are small ownership pieces of a specific company. When the company does well, our piece of the company appreciates in value.

The natural movement of the stock market, in the long run, is up. Even when we see crashes in the market, the market will correct and move upwards again.

Why Should I Invest In Stocks?

First of all, the natural movement of the stock market is up. Since the average return on investment historically is 7% per year, we can see that this is true for the past 100+ years.

When companies are in the market for a long time, they have matured. When companies have matured, they will most probably not provide you with an average annual growth of >10%.

Do Your Own Research

Do your research when investing in stocks. Don’t be that person that thinks: ahh Facebook had +15% return this year, let’s buy it.

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