Investing In Stocks: For The ACTUAL Beginner

So, you want to invest? Or buy stocks? Or whatever other fancy term the big guys on the top floor called it? I've been there.

I've scoured the internet, searching for "Investing For Dummies" and "Stocks For Beginners". But nothing ever really came of it for 3 reasons:

1. Some of these platforms looked terrifyingly complex. How am I supposed to transfer my money when I don't even understand where it's going?

2. Every "How To Guide" was very vague, telling you to open an account and buy the stocks. Open an account where? Buy which stocks? When do I buy? How do I buy?

3. I took the liberty of signing up on some of these stock-trading platforms. I even opened a trading account with Toronto Dominion Bank. But once the accounts were made and my email had been bombarded with welcome emails, I realized they required a minimum of $XXX to start. Sometimes they would require $300, other times they required $1,000. Some had the audacity to require $5,000 just to start! I CAN'T AFFORD THAT! TD didnt have a minimum, but I was supposed to jump through hoops just to deposit money.

Well, ladies and gentlemen, guys and girls, I found it. My cousin is a genius kid, he's actually going to school for business & finance (props to him- I did NOT see that coming!). So when COVID hit and the markets crashed, he jumped in and invested $4,000 in the airline companies. 'That's genius!' I thought to myself. But how? Did he sign up somewhere as an independent broker or some sales person on an MLM platform? So I messaged him. I asked how he did it, and what the minimum was. Do you know what he told me?

"You just download one app, confirm your identity, and deposit however much you wish." You got $20? Great, let's start investing!

Quick note here, yes this is my referral link. It actually gives both me and you a $10 bonus if you use it!

The app is called Wealthsimple. *Yes, this is my personal referral link........ It doesn't cost you anything, and actually gives each of us a bonus when you start using the app!*

Okay, I've downloaded the app. Now what? Well, once you've verified your identity, and linked your bank account, you're ready to get started. Transfers from your bank account will take 3 business days to come through, for security purposes. Once the funds come through, you're ready to start trading!

Okay, I've put in some funds. Which stocks do I get? This is where it gets tricky. And this is where every blog post ever before has been vague and inconclusive. So this is where I become your best friend.

First I want to start with a disclaimer, and say that I am not a professional by any means. I am not providing professional advice, and I am not liable for any profits/losses that arise as a result of this advice.

Strategy 1: Crash And Rise

My personal strategy goes a little something like this (with my real life choices *as an example* in brackets):

1. Think of a niche that's probably not doing so well right now. (During COVID, that was travel. Nobody was travelling anywhere).

2. What companies in this niche are struggling? (For me, this was the airlines. No travelers meant no profit).

3. Next, consider the likelihood of the businesses bouncing back. (Absolutely, once COVID clears up and people can travel again, airlines will likely be at the same value/profit as before).

4. Use the search feature in the app to find a company in this sector. (I found Air Canada and United Airlines)

5. What is the value of the company's stocks right now? ($16/36)

6. What is the 52w high for the company's stock? ($34/65)

7. So, if your company resumes normal operations, how much profit could you potentially see? (BASICALLY DOUBLE MY MONEY ON BOTH). Note that you may not hit the 52w high when the business resumes normal operations, so you may only increase your value by 50%.

8. Watch the markets. Anything can happen in a day. If you see a decent jump, cash out (unless you suspect the stocks will jump more of course). I saw a jump on Air Canada about 4 months after I bought in, bringing my value up by $42CAD overnight. However, I know that there is still a bigger jump to come as everyone is still under travel restrictions due to Covid. So I haven't sold yet.

With this train of thought, if you come out to a worthwhile profit, go ahead and buy a share... or 7! Of course, what is "worthwhile" will all depend on you. For me, my airline example depends on the control and eradication of the COVID pandemic. This could be next month, but may only be next year. I'm not depending on the money, so I am okay to leave the money invested until it gives me a good return, however long that may be.

Strategy 2: Set To Jump

This strategy is a little more iffy. I recently learned that Shaw had expanded their Wifi/TV services to include mobile too. With the unbelievable rates and combined services (I now have my Wifi and my cell on one bill instead of 2), I expect this to catch on quite a bit. So I went and bought one share for $8.

If you know of an up-and-coming offer, service, or store that is about to boom, I suggest buying a share or 2. Don't throw in all your money, because this expected boom isn't guaranteed. It's just nice to know that when something does make a huge leap, at least you got in on the action, and earned yourself a pretty penny.

In a sense, stocks are much like slot machines. It is a gamble. You must learn to pull out while you are ahead. If you have a profit on your hands, and you're not sure if there will be another jump, it is safer to sell and invest elsewhere.

Good luck and happy investing!!

P.S. If you have any questions, or something I didn't cover, drop a comment below! :)