It is Surprisingly Easy to Get on the Stock Market

I was 23 when I started investing on the London Stock Exchange. In the last three years I have seen a slow increase of my money of about 8 - 10%. This may not seem like a lot, and you're right, it isn't. If you're looking for a get rich quick scheme, then you're reading the wrong article. If you want to see your money grow exponentially over time in a relatively safe way with higher yields than any interest rate you could secure at a bank, then you might learn a few things.

People – generally – are afraid of the Stock Market. It is a scary, omnipresent overlord that decides the value of things, makes a select few rich, and even more very poor. It is believed to be a complex mathematical system understood by a few people in grey suits who have trained in Mergers and Acquisitions, Initial Public Offerings, Ring-Fences, and acronyms which make their speedy, complicated lives quicker, but no less complicated. But this is not the world we live in anymore. Thanks to the Internet and a host of companies, the Stock Market is no longer reserved for the super-rich and those who live on Wall Street.

There is no reason to be scared anymore. We can all have our share (excuse the pun). However, there is a caveat to what follows about investing on the Stock Market. This article will not make you rich. It is not a cheat code on how to be like Jordan Belfort (I mean, why would you want to anyway?).

This article focuses on how to get on to the Stock Market, not how to get rich on the Stock Market. The purpose of this article is to show you that it is a lot easier than you think.

Research

For anything financial-related, research is always the first step. Google things. It is that easy. But you did not need me to tell you that; you have probably done that yourself. I’m going to tell you what to search for.

You cannot invest directly on any Stock Market anywhere in the world without a license. This is what makes most people stop in their pursuit of the Stock Market. They believe that because you have to go through a professional, or become a professional yourself, it’s going to be too expensive – both in time and money – and consequently, not worth the effort.

Luckily, they are wrong.

Finding the Right Intermediary

It is pretty easy and cheap to invest through a stock broker. You still have to research which broker will be right for you, of course. Simply by typing into Google, “Trading on the Stock Market” you will be introduced to a plethora of online companies who can assist you in getting on the Stock Market. They have made it as easy (and as un-scary) as possible for you to invest on the Stock Market.

You are still going to have to do some work and read the literature of these investment companies. Compare them, and choose the one that is right for you. I know no one reads all the terms and conditions but just this once, I implore you, since this concerns your money you need to do your due diligence.

Don’t be afraid to send them an email if you have any questions. They understand that first time investors are hesitant to part with their money. They are usually very helpful.

Keep Researching

Congratulations! You’re now on the Stock Market. How easy was that? But it is still important for you to do your own research in to different companies you want to invest in. Luckily for you, publicly listed companies make it easy to find the information you need. A cursory Online search of the company you're looking to invest in will tell you whether, the CEO is worth his salt, whether the company has been up to any shady dealings, or if there are any upcoming mergers that investors should be weary about.

There are tons of other resources too. The London Stock Exchange, for example, has it’s own website that allows you to compare different companies, see how they have faired on the Stock Market in the past, and even allows you to run a simulated portfolio without actually risking any money.

Parting with your Money

Now you have an intermediary through whom you plan to invest, and you have some idea of which company (or companies) you want to invest in, you are going to have to part with your hard-earned cash. And this is where it becomes slightly risky. You could lose money. It happens when you’re working with the Stock Exchange. But the rewards are there too, so long as you do some decent research.

The question is, how much money do you have to invest? Or better yet, how much money are you willing to risk? This question not only depends on your financial freedoms, but on your age as well. If you are trying to make a lot of money quickly because you want to make money quickly, or are looking to retire soon, it is more than likely you are going to want to go for more risky shares because they can increase in value quickly. Just beware: they can depreciate with the same speed.

These are shares in small- and medium-sized business who are still in their first year of business and are looking to grow rapidly in their respective markets. They are risky, but can yield a high reward. But you need to know what you’re doing. If you have money that you are okay with losing just to gain some experience, then this would probably be the best bet for you. You'll be learning on the job. Experience with the ebb and flow of the Stock Market is needed here, and if you’re willing to take the hits to gain the experience, go for it. Fortune favours the bold.

The safer way to invest would be in low-yielding shares that grow over time. These are your large, well-established companies that don't look to be going anywhere. They’re safer because it is highly unlikely that they will go out of business. These companies are good to invest in when you have a lot of time (i.e. when you're young), don’t need the money immediately, and can wait and watch your money grow. It is slow, and it will seem like you’re getting tiny amounts of money back, but, depending on the company you invest in, the return you get on interest and dividends will likely be higher than any interest you get by leaving your money in the bank.

There is always going to be some risk, even with the larger, more established companies (look at Thomas Cook). No company is so solid that you are bound to make money. Do your research. Don’t part with your money without knowing what you want and understanding that you could lose it all.

It would be highly unethical to tell you which companies to invest in but a helpful tip would be to just look at the world around you. Which companies do you know of that you would make you say, "yes, I am happy to give you my money in the hopes that you will grow, and if you don't, I am equally happy to lose that money on you."

It's a Brave New World

And with that, the evil monster is slain. The citizens are free to live, laugh, and make money through investments. This isn’t a fool-proof guide, but it shows you how much easier it is to invest than the general public believes. Go forth, research, and prosper. Good Luck.