00:00before investing in stocks it's important to do your homework here are
00:08some key things to consider if you're just starting out your investment
00:11strategy depends on what exactly you're investing for be prepared to know your
00:16investment goals when opening a brokerage account these could be saving
00:19for retirement buying a house or even college tuition your goals can change
00:24over time and you'll need access to some investments sooner than others ask
00:29yourself how much of your investment can you afford to lose since some stocks
00:33are riskier than others you should focus on stocks that match your personal risk
00:37tolerance if you're living paycheck to paycheck and you need money for next
00:41month's rent you have a low risk tolerance that means you should choose
00:46investments that are more conservative and risk-averse such as a high interest
00:50savings account in the beginning your portfolio might look like more bonds and
00:54fewer stocks but as you become more financially stable that ratio might
00:58flip-flop just because you want to start trading stocks doesn't mean you
01:03need to be an expert some prefer to take a more active approach in managing their
01:07investments but there's also nothing wrong with leaving it to the pros or
01:11putting it on autopilot either way it's a good idea to practice first with a stock
01:16market simulator which can boost your trading know-how without risking your
01:20money finally since trading is inherently risky you'll want to mitigate that by
01:25spreading out your investments across a wide variety of assets in other words
01:29don't put all your eggs in one basket and if your starting budget is limited
01:34consider mutual funds and exchange traded funds which tend to own a large number
01:39number of stocks aka more diversified than a single stock
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