What New Investors Need to Know!

     I'm gonna keep it real with you. This is just a list of knowledge and insight new investors need to learn. Although theirs is simply not enough information about each insight to make a paper alone. So I'm gonna make one paper which has all the information you need to learn. Alright, let's straight into it.

     Know where your companies reach across the World. Let me give you an example. Coca-Cola is an American beverage company. Although when you look around the world you see Coca-Cola everywhere. you’ll see American semi-trucks going down route 66 with Coca-Cola printed on the side. In Europe, you’ll see Coca-Cola vending Machines and dispensaries. In the middle east, you’ll see vans and trucks with Coca-Cola bottles in the back. In Mexico and South America, you’ll see 4-liter bottles of Coca-Cola in the stores. In South Asia, you see Tuk-Tuks with Coca-Cola on them. This isn't just Coca-Cola it’s Ford, Pepsi, Intel, Apple, Tesla, and a whole list of companies. Even though a company is in a certain region or country. They can reach all over the world and be a part of other nations' economies. Which can and will affect the value of the company and the stock both positively and negatively.

     Look for your prices. I touched on this with The Bear and The Bull. When the markets hit their all-time highs and they're outperforming themselves. That is the time to sell if you were to sell. Then there are times when the markets take a hit and drop 5%-15%. When the market takes a hit don't listen to the mainstream media. About how the S&P 500 dropped by 7%. You need to sit there and rationalize and realize “hey, these securities are now at a discount I should go and buy myself some” instead of “THE MARKETS CRASHING, I NEED TO SELL BEFORE I LOSE ALL OF MY MONEY!” Because at the end of the day. If you own stock, ETFs, Mutual Funds, really any security. You need to realize even though there is an active price tag put on your security. Not to focus on the price of the security. You should instead, focus on the fact that you own a piece of a company or a piece of some entity that drives the value of the security. 

They’re different measurement units that measure how securities are performing on stock exchanges. The percentage is the simple measurement of what percent a stock has increased or decreased over time. although you would usually use this measurement to see how your securities are doing. You would open your investment account to see it’s up by 2% on the day. Points are the measurement of how many USD securities have increased or decreased. So when you hear a Broker go “Damn, the Dow is down 500 points” they’re saying the down has decreased in value by $500. Market Capitalization is the total value of all shares put together. So you look at Coca-Cola and see it's got a Market Cap of 268.8 Billion USD.

    It matters not timing the market, but rather time in the market. American funds put out a guide for 2021, and on page 19. it showed that investments held for 10+ years earned a positive yield. This just goes to show you don't need to fiddle and micro-manage your investments. Don't try day-trading to make a quick buck, cause you’ll get screwed over by short-term capital gains tax. Instead, throw your money in the market and let it grow for a few years at the very least.

     Diversification is key to true and proper investing success. Look at it as bed o nails. You cant see the bed nor do you know how sharp those nails are. But to keep yourself from extreme pain and discomfort you need a bunch of nails. Same with investing, invest in a bunch of companies to keep yourself stable and well balanced. Get it through your skull that you are not The Wolf of Wall Street. you're not Christian Bale from The Big Short. You are a normal person. Tryna beat inflation while attempting to make some gains. So get your head out of the clouds and start throwing your money at SPY, DIA, QQQ, and other diverse funds.

Get your money to work for you. You need to see your money as irreplaceable dollars. Cause chances are theirs gonna be a day when you're not going to be working. So you need to invest that money. So your money can get more money for you. Then that sum of money will get you more money. The loop will keep continuing to put you, in a very comfortable spot.

That's a lot of information that I simply put, couldn't make into a whole paper on its own. But the main things you need to remember going down this investing journey. Get your money to work for you, be timed in the market don't try timing the market, understand where your investments reach across the globe and understand that long-term is the best way to invest. So all in all just be invested for the long-Haul.