How to Buy Stocks (For Beginners)

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2:01PayPal Open. Grow today at paypalopen.com. Loan subject to approval in available locations. So how to start investing in stocks and the three of us get this question all the time. So we wanted to lead with that and we want to break it down as simply as we can. And so first you need a brokerage account. What is a brokerage account? Okay. A brokerage account simply guys allows you to buy stocks, sell stocks, invest. Okay. And so some of the more notable names you might know of or meet, be familiar with, or you may not be Vanguard, Fidelity. Those are two ones that has been around for the test of time now.

2:45And if you are thinking long term, these two entities are ones you want to consider. Fidelity, Vanguard, you want to think about once I do, take this step to invest. Let me open up a Fidelity account. Let me open up a Vanguard account. You want to start there with the premise in mind that you are thinking long term. Then you have everything from more newer apps, more user friendly ones like Robinhood, Webull, Interactive Brokers, Tasty Trace, to name a few. So listen, guys, it starts with before you can invest, you have to have a brokerage account to even deploy your money to. OK, and this is lateral from your job.

3:32This is separate from whatever you are getting at your place of employment. This is this is on you. The book came out. We want to make sure this book become a number one bestseller. you deserve this is about you this is about you guys okay and so you need to make sure you have your own brokerage account you're doing your your own investing you're taking your you taking your own finances and affairs in your hand okay next up i'll take it i'll take it even a step further too because i want to kind of expand on that a little bit because for some people like to even why investing is important or what a stock is, right?

4:12Like we talk about stocks as far as that's ownership and there's private companies and then there's public companies, right? So the public companies, anybody can own it like Tesla, like Microsoft, a private company is like earn your leisure where only we own it, right? So it's important to invest in these public companies because as their value goes up, your investment going to go up over the course of time as well, right? So the only way we talk about inflation, the only way to beat inflation is to actually invest, right? Because that's how your money's actually working for you over the course of time.

4:40But another question that I get about the brokerage is like, even like how to set it up. And it's really not too complicated, guys. Like you go to the app store and you download Charles Schwab is another one, or you download Fidelity and all of these apps and platforms have similar type of things where you just got to fill in your information. So they have to, it's called like, know your customer, right? So they'll ask you, your socials, they'll ask you your number, your email. You have to provide this information, guys. You can't try to... I ain't putting my social in there. You gotta provide this information.

5:16And then from there, you link your bank account to it. This is important for people to fully understand as well because they're like, well, how do I get money into the account, right? You gotta fund it. You link your bank account to it and then you fund it. And then that funding goes both ways. So you put money in from your bank account. I'm going to put$2 ,000 from my bank account into Fidelity. And then when it's time to move from money from Fidelity to your bank account, vice versa, vice versa. But where it's held at, this is important, but I know we're going to talk about retirement. Can I give them a hack from what you just said?

5:49This is important too, because that transaction time, it can, if you're a new customer, that might take five to seven days. And so for us, having money that we sent and we don't know where it's going and it's taking five to seven days, it's a new account opening. you could feel a little angst. Especially Robin Hood. But what you can do, right? And this is a good tip. I use E-Trade. And so when E-Trade, I found out the wire instructions, right? So when I get the wire instructions that come from E-Trade, now when I send the money, right? Let's say I'm sending$5 ,000 to my E-Trade account. That's going to get there within 30 minutes rather than waiting five to seven days.

6:26And so, yes, you can do the ACH transfers, which take three to five or maybe five to seven if it's your new account or you can't get your brokerages wire information and have that money expedited because five to seven days in the market can change a lot right like we we saw over the past week right on monday it's up by friday you could have lost a lot or you could have gained a lot so you want to make sure that your money gets there in expedited fashion wire transfers is another way that you can you can hack that the last thing i'll say before we move on is that um i i used to get this a lot when people were talking about their 401ks they have a 401k the money's coming out of their checking their money's coming out of their paycheck and they automatically assume that it's being invested and i ask like what are you investing in they're like i don't know did not see their statements and they're not actually invested in anything when your money goes into a brokerage account it goes into what's called a money market that's like a savings account pretty much for a brokerage account like it's sitting on the sideline you have to direct where the money's going so the next thing we'll talk about like actual investments But don't think that, okay, I opened up Fidelity.

7:30I'll link it to my Chase Bank account. I put$2 ,000 from Chase into Fidelity. And now I'm invested into the stock market. You're not invested. But like I said, that's not quite how it works. That actually happened. Like I said, I saw that with retirement when I was a financial advisor. I used to see that with retirement. People have money. They used to have like$20 ,000,$50 ,000 into their retirement account because they were never fully educated that you had to pick something. and they just the default for their retirement plans was a money market account until they decided what they wanted to do with the money they never decided what they wanted to do with the money and the money was not growing it's not a money market is not invested right that's like a it's sitting on it's sitting on a sideline so that's just important just because you open it you put it in now from there you have to actually put into investment that's a fact chris i'm gonna go back up to this this slide where we're looking at the the brokerages yeah is there one that you prefer or the other or just case by case like i know e-trade is not on there everybody e-y-o you knows i love e-trade but i'm using it so i'm using that because for informational purposes it it's easier for me i love the way that we can get information is there is there one that is preferred or the other vanguard for long term i prefer for strictly long term and or fidelity You can't go wrong if that's the mindset.

8:49I'm buying and holding this for at least 10 years. Vanguard and Fidelity are phenomenal. E-Trade, Robinhood, M1 Finance, some of those other ones are good, too, because they provide even more information and news and other things that is helpful to the user. So there's no order, but except for the long-term piece, Fidelity and Vanguard are the ones. You're not trying to trade in those. Well, Vanguard at least. You're not using that to be a trader. You're purposely, intently trying to invest. Imagine winning game day before the whistle blows. With American Express as the official payments partner of the NFL, card members around the world can get used to that feeling and enjoy incredible experiences at select events all season long.

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