00:03before investing in stocks it's important to do your homework here are some key things to consider
00:09if you're just starting out your investment strategy depends on what exactly you're investing
00:14for be prepared to know your investment goals when opening a brokerage account these could
00:19be saving for retirement buying a house or even college tuition your goals can change over time
00:25and you'll need access to some investments sooner than others ask yourself how much of your investment
00:31can you afford to lose since some stocks are riskier than others you should focus on stocks
00:36that match your personal risk tolerance if you're living paycheck to paycheck and you need money for
00:41next month's rent you have a low risk tolerance that means you should choose investments that are
00:46more conservative and risk averse such as a high interest savings account in the beginning your
00:52portfolio might look like more bonds and fewer stocks but as you become more financially stable
00:57that ratio might flip-flop just because you want to start trading stocks doesn't mean you need to be
01:03an expert some prefer to take a more active approach in managing their investments but there's also
01:09nothing wrong with leaving it to the pros or putting it on autopilot either way it's a good
01:14idea to practice first with a stock market simulator which can boost your trading know-how without risking
01:20your money finally since trading is inherently risky you'll want to mitigate that by spreading out
01:26your investments across a wide variety of assets in other words don't put all your eggs in one
01:31basket and if your starting budget is limited consider mutual funds and exchange traded funds which
01:38tend to own a large number of stocks aka more diversified than a single stock
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