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congratulations you are thinking about investing in the stock market well today you’ve clicked on the right video I’m going to share the six steps I use to become a very successful investor I very first year I was able to get a market rate return next five years I got thirty to forty percent per year I’m going to share with you guys this thought process I went through and how you can achieve the same success I did I cannot wait to share this with you guys today [Music] good day ladies and gentlemen welcome to the financial education Channel I am Jeremy and today I am here to help beginners in the stock market it is such an exciting time being a beginner in the stock market because you are learning so much and today I’m going to cover in this video all the beginner steps that you need to take in a six step process that I took to get me to where I have gotten as an investor I’m going to share all that with you guys today so the first three steps of the whole program just jumping right into it the first three steps they’re all soul-searching type steps the number one step number one before you do anything you need to ask yourself 10 you lose money do you feel comfortable if you lose money that doesn’t mean you like it but are you the type of person that can withstand a loss if you take one some people cannot stand if they lost $10 nevermind a thousand dollars or ten thousand dollars on a stock that maybe went down after they made an investment in it so you need to ask yourself do you have the type of personality do you have the type of control over yourself that you won’t have so many negative thoughts come in your head the stock market can be a scary place at times people have done suicide because they’ve lost money and those kinds of things you want to make sure before you ever get into is that you are well aware of the risks you lose everything that’s not very realistic of losing everything but you’ve got to be aware that that can happen so before you go any further at all are you the type of person that can lose money and say oh you know what that’s going to get back to me that is going to come back to me this way if you are then let’s go on to step number two step number two is are you willing to put in the work can you put in the work are you willing to put in the work doing research on companies looking for new investment ideas searching through all the financials that I’m going to tell you all about in a few minutes here are you willing to actually do that if you think you’re just going to magically just throw some money at some stocks and not put any work into it and make money and make a good amount of money you’re sorely mistaken maybe you could get lucky once or twice doing that that’s not going to work if you’re doing that you might as well just go down to the local casino and gamble your money because that’s what you’re doing at that point in time you have to be willing to put in the work put in the work read through company filings research research Google things about that company see what new products or services are coming out with you’ve got to be willing to put in the work if you’re not and you’re not interested in all that those kinds of things you’re never going to get a good rate of return and you’re probably going to lose money so keep that in mind step number three you need to go ahead and figure out what kind of investor you’re going to be there’s many different kinds there’s a super long term type investor which is would be considered maybe like the Warren Buffett type investor where you plan to hold a stock for 10 plus years if not for your entire life you buying that stock you hold it forever nearly there could be a long term investor which is someone that’s maybe looking I’m going to hold this stock for let’s say a year to five years I’m looking from one to five years out that’s how long I plan to hold this stock then you have the shorter term investors which are investors that are under a year so you’re just playing a hold it for a few months maybe doing a quarterly earnings those kinds of things and the last type of investor is someone that’s a day trader someone that’s trading in and out of stocks constantly literally either by the day or by the week or by the month they’re just trading a lot so out of those four what are you going to be personally on the second one that we talked about I’m a long-term investor I’m looking for companies one to five years out but my approach in a lot of the ways I think are much like Warren Buffett and Ben Graham and those guys so my brain just kind of thinks that way there’s a good book I don’t have it around right now is by Ben Graham’s called the intelligent investor you may want to read that it’s a good beginner book in my opinion there’s other books you can read out there but it talks a lot about mr. market and long-term investing those kinds of things so once you’ve figured out what kind of investor you are what kind of approach you’re going to want to use then you need to start researching and I suggest researching big companies so pull up a company like Apple and the biggest company in the world go on to Yahoo Finance figure out what Apple’s ticker symbol is and go ahead and type that in and look at the profile part how they describe the company look at what the p/e ratio is you want to try to find a p/e ratio that’s under 17 unless the company’s got super good growth they have super good growth in maybe you go up on that p/e but overall around a 17 or lower then you want to look at the income statement there’s an income statement tab they’re going to show you the last three years of revenue in a profits at the bottom you want to look at the track record as far as where’s revenue been going then you want to look at the gross profit whereas gross profit than going hopefully both those are going up and up hopefully there’s more and more revenue each year hopefully as more group profits each year you want to look at those kinds of things you want to look at the balance sheet you want to see how much cash and cash equivalents they have on the balance sheet versus how much long-term debt and short-term debt they have on a balance sheet if the cash and cash equivalents is far higher than what they have for short-term debt and long-term debt that means it’s a much safer investment from the standpoint of they’re not going to have to worry about going bankrupt all of a sudden or something because they have plenty of money in cash that even if the company stumbles a bit financially they’re not going to go out of business or something like that if you let invest in a company that has a ton of long-term debt a ton of short-term debt in a very small amount of cash what happens if that company stops making a profit or something goes wrong in that company a lawsuit or something they’re going to be in real trouble real trouble so that’s why you need to try to find companies that have a lot more cash than they do debt very very very important so you search through a bunch of companies now at this point you know Apple Google Microsoft coca-cola all these huge companies I recommend at that point you pick which company you like the best and this goes to step number five so you pick the one company you like the best the one you like okay that’s the one I’m going to go into now what you need to do step five you need to create a account online with some type of brokerage so it needs to be like an e Trade TD Ameritrade Scottrade fidelity investments Charles Schwab there’s a lot of different online brokerages picked whichever one you feel comfortable with they all range from about $7 a trade to about $10 a trade so pick one of those guys that you want to invest in put some money in that count I recommend between $100 and $500 put around that amount of money into that brokerage account then go ahead and put that money in that one stock that you picked just that one stock let and then you want to go on to step number six you got the money invested so over the next three to six months you’re going to do more research on more companies but you’re going to keep the money just in that first stock you invested in and you’re going to see how it goes you’re going to track that stock like you’ve never tracked anything in your life you’re going to see everything what’s though earnings numbers that come out how are they looking how’s the stock price done since you invested all those kinds of things you want to track that and see how did you do so far how do you if the stocks down a little bit that doesn’t necessarily mean you made a bad choice especially if you’re super long-term investor because at that point you’re investing for super long term so if the stock went down the first three months that doesn’t necessarily mean you made a bad choice it could but you’ve got to look at the company fundamentals at that point how is a company doing are they meeting the numbers they’re supposed to mean as far as profit goes and revenues and those kinds of things so you need to look at all that once you’ve observed that and you’ve got about six months in this first stock then if you feel comfortable putting some more money in and you think okay you know what I can do this I’m willing to put in the work you know if I lose money I’m okay with it I’m gonna make it back because I’m gonna pick a better stock those kinds of things then you can funnel some more money in that account and then you can invest in your next stock or that’s more than that first stock if you really still like it the best and then you can follow some more and more over time so by the end of year one going into year two you have a fair amount of money in that account we’re now you’re really managing your money and you’re managing stocks and by year or two you’re heavily invested I call it so at that point you’re heavily invested you have a lot of your savings invested because you feel comfortable about yourself you’re good at what you do hopefully if you’re not you might want to not want to do it if you’re getting really bad returns it might not be for you at that point if you haven’t made a success of it by year two so and then you’re well on your way but that those six steps are exactly what you need to take in my opinion to go on to be a successful investor those will set you up those three first points and then those three fundamentals after that as far as actually doing it I hope this helped immensely guys in if you’re a beginner in the stock market leave me a comment below if this was helpful leave me some questions if you have some I’ve made several other stock videos that are more advanced things and I have more advanced things coming up that are more for like intermediate investors and maybe even investors that are advanced advanced so they’re really high up there I have a lot of those videos coming I’ve done some I can direct you to more videos on my channel or other people’s channel that i really recommend so thank you so much for watching guys if you haven’t subscribed you may want to I talked to Tom about stock market investing those kinds of things I talked about personal finance I also talked about entrepreneurship I’m a young business owner I give a lot of tips to other young business owners in my videos I thank you so much for watching guys and have a great day [Music]