How to Invest Your First $100 (Step by Step)

About this video

• Video Title: How to Invest Your First $100 (Step by Step)
• Channel: Zain Azhar
• Speakers: Zain Azhar
• Duration: 00:11:02

Overview

This video provides a comprehensive, step-by-step guide for beginners on how to invest their first $100 in the stock market. It covers selecting a brokerage account, choosing investment types (focusing on ETFs), making the initial investment, and setting up recurring deposits to build long-term wealth. The video also warns against common pitfalls like chasing hype and selling during market dips.

Key takeaways

• Choosing a Brokerage Account: Consider availability in your country, commission fees (ideally zero), and the breadth of investment options. User experience and platform beginner-friendliness are also important factors.
• Investment Type: For beginners and those in their 20s-40s, investing in Exchange Traded Funds (ETFs) that track broad market indexes like the S&P 500 is recommended for diversification and safety, rather than individual stocks.
• Making the Investment: This involves setting up an account, linking a bank account, depositing funds, and executing a buy order for your chosen ETF. Fractional shares can allow for diversification even with small amounts.
• Building Wealth Habits: Setting up automatic, recurring deposits (e.g., $100 weekly) is crucial for consistent investing, removing emotional decisions, and leveraging the power of compound interest over the long term.
• Avoiding Pitfalls: Steer clear of chasing hype (like meme stocks or crypto with unrealistic return promises) and avoid selling during market downturns, as these are temporary and can lead to significant missed gains.