Five Steps to Start Investing in Stocks

When you buy a stock, you’re buying a small share of the company that issued it. Stocks can generally be purchased both online through a discount brokerage or through a full-service brokerage firm. You can choose to invest in individual stocks or invest in funds that hold several different stocks. And if the stocks you buy increase in value, you can sell them to another investor at a profit.

No two investors are alike, and neither are any two investing styles. What may be right for one investor, may not be right for another. Following these five steps can help you craft an investing approach that is tailored to you.

Begin by setting goals. Are you pursuing a short-term goal like saving for a down payment, or a long-term goal like retirement? Next, think about your investor profile. Things to consider may include your ability & willingness to tolerate risk. This could be based on how much capital you are starting off with & how much you expect to earn from your investments, how much income you currently earn & expect to earn in future & how accessible you would like your investments to be. Answering these questions will help you decide what type of investor you want to be. Opening an investment account that suits your needs is step three – and step four involves setting an investment budget and strategy that will help you reach your goals. Last, but certainly not least, the final step is to always do your research. Understanding the risk associate with investments can support you in making more informed decisions that can go a long way to helping you reach your financial goals.

There’s no sure-fire way to invest but following these five simple steps can help. And remember, you’re not in this alone. The TD Direct Investing Learning Centre offers extensive online resources to help you make informed decisions. Start investing with confidence with TD Direct Investing.