Full disclosure: I have been trading stocks since 2007. Lehmann brothers collapse destroyed my account in 2008. Although, I was investing from 2007 till 2016 - intermediately - I was not a full time trader until 2017.
From 2017, I have spend roughly 40-60 hours on a weekly basis, doing lot of analysis and following is my advice for any beginner.
Step 1: Open a stock trading account. (Although professionally speaking, TD Ameritrade, E-Trade are two of the best trading websites - if you are a beginner - Robinhood's user interface is very customer friendly.)
(You may choose following link to open a Robinhood account: https://join.robinhood.com/viralp56)
Step 2: Invest 5$ in the following 5 ETF's
- SPY
- QQQ
- IWM
- INDA
- FXI
SPY will cover 500 top companies trading in United States.
QQQ will cover Nasdaq's top 100 companies in United States.
IWM will cover top 2000 United States companies - many of them are small and mid caps.
INDA will cover top companies from India (an emerging market)
FXI will cover top companies from China (perhaps the next global leader)
Step 3:
Set up a recurring payment of 5$ on daily basis in each of the above 5 ETF's (Monday to Friday).
Note: This will ensure you are covered for downturn as well as you are averaging out on uptrend.
Step 4:
Enjoy nice 8 to 10% return on an average per year.
Step 5 (Optional):
Thank me after 10 years when you have more than 100% Gain on your investment :)
Edit 1: Follow above method at least for your first 10,000$. Once you reach that threshold and wanted to jump in individual stocks, please invest in any of the following three buckets based on your risk tolerance.
https://viralpatel15.blogspot.com/2022/04/my-favorites-stock-compilation-list.html
