Here is a step by step guide for newbies to invest in the stock market. Been wondering how to start your own investment portfolio? Our quick guide will definitely get you started.

Step 1: Decide how you want to invest in the stock market.

This basically means you must decide whether you want to do it yourself or hire professional managers to do it for you.If you are doing it yourself then you will need an online brokerage account. With a broker, you can open an individual retirement account, also known as an IRA, or you can open a taxable brokerage account if you’re already saving adequately for retirement.On the other side of hiring professionals you will Open a robo-advisor account which offers the benefits of stock investing, but doesn’t require its owner to do the legwork required to pick individual investments. Robo-advisor services provide complete investment management: These companies will ask you about your investing goals during the onboarding process and then build you a portfolio designed to achieve those aims.

Step 2: Choose your ideal investing account. You are now ready to shop for an investment account. For the hands-on types, this means a great deal of research is needed to open s brokerage account just so you don’t end up in any scammy companies. Try my three favorite brokers: orbex, Instaforex or exness on these links later. For those who would like a little help, then pening an account through a robo-advisor is a sensible option.

Step 3: Get instant knowledge on how to invest in stocks vs. funds.Usually stock market investing means choosing among these two investment types:Stock mutual funds/ equity mutual funds or exchange-traded funds. Mutual funds let you purchase small pieces of many different stocks in a single transaction. Index funds and ETFs are a kind of mutual fund that track an index.On the other hand of Individual stocks, you may be after a specific company, and then you can buy a single share there or a few shares as a way to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes a significant investment and research.

Step 4: Set a budget for your stock market investment.This is an exciting stage in your life as you want to decide how much profit or risk you are willing to incur in your investment.Share prices can range from just a few dollars to a few thousand dollars. If you want mutual funds and have a small budget, an exchange-traded fund (ETF) may be your best bet. Mutual funds often have minimums of $1,000 or more, but ETFs trade like a stock, which means you purchase them for a share price — in some cases, less than $100.

Step 5: Focus on investing for the long-term.Over several decades, the average stock market return is about 10% per year. The best thing to do after you start investing in stocks or mutual funds may be the hardest: Don’t look at them. Unless you’re trying to beat the odds and succeed at day trading, it’s good to avoid the habit of compulsively checking how your stocks are doing several times a day, every day.

Step 6: Manage your portfolio accordingly. A few things to consider: If you’re approaching retirement, you may want to move some of your stock investments over to more conservative fixed-income investments. If your portfolio is too heavily weighted in one sector or industry, consider buying stocks or funds in a different sector to build more diversification. Live The Joy Life!