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Robinhood. Webull, M1 Finance.
These are stock market apps that help you learn how to invest. They are good, simple apps. Most offer free stock to get started(read below).
And it gets enticing when you think of how much money you would’ve made if you invested in Tesla a year ago ($130 a share to $820 a share in a year!). Or how much you would’ve made if you invested into Amazon 5 years ago ($555 a share to $3,219 a share in 5 years).
As I write this, Gamestop is at an epic rally. To give you an idea, of how epic:
-At 4pm on Tuesday, January 26th the stock was $145.96 a share.
-On Wednesday, January 27th at 9:30am the stock was $351.94 a share.
(For the record, trading hours are 9:30am-4:00pm.)
In the past year it’s almost increased 700%. It’s insane.
The video below will explain why this is…
Now there is a lot of risk with the stock market. It’s been performing crazy well for a while. Things like this with Gamestop may not affect it. Or it may. But it’ll go through periods of dropping and jumping up periodically. That’s why it’s a great long term investment. It grows from 8%-12% historically.
With that being said, many people who are ignorant of the stock market will jump in thinking these rallys are a common occurrence.
I’m not a stock market guru and won’t claim to be one. But I understand enough to know that messing with single stocks that are shooting up and down with such drastic numbers is an easy way to lose your money.
Like I said, The Stock Market is like Relationships, if you ain’t in this for the long haul, you’re gonna get smacked in the face.
Now don’t be scared off! You’ve showed up to the right place. The stock market is a great place to build wealth. But you have to understand the end game. Making a quick $100 can easily happen, but Elon Musk can send a tweet out that doubles that and another tweet that cuts it in half.
This is why I’m a huge fan of diversification and specifically mutual funds. Mutual Funds are a group of stocks, instead of a single one. They always do well in the long-term. The video explains it pretty well.
I have messed with single stocks plenty. But I realize that it’s a lot like fishing, I’ll tell people about the big fish I caught and stay ghost faced about the days I struck out.
If you are interested in the stock market, it’s the right place to build wealth. But I advise you to consider two things:
1. Find a financial advisor who wants to teach you to understand how to build wealth with the stock market as a tool. I really like to go to the Dave Ramsey SmartVestor Pro that I was referred to. He has helped me a ton. You can connect with one through the link.
2. You can get an app like Robinhood and put in $20 to learn how the stock market works. But before putting any more then $20 in, I’d wait until talking with a financial advisor. It’ll show you how stocks go up and down. It’ll be a good way to build familiarity with it.
If you want to try Robinhood, you can use this link if you want. You’ll get a free stock for signing up. To be clear, I’ll get a free stock too. 🙂 I really like the app. It’s the best to me for people that are new to the game.
The stock market is your friend. Take time to learn how to make money with it.