How To Invest $1000 In The Stock Market
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Today we do an in-depth video on how to invest $1,000 in the stock market. For whatever reason when folks get about 1000 dollars, many of them think about investing and investing in the stock market. This is phenomenal! I want to share how I would go about investing $1,000 dollars in stocks. This should be a good stock market for beginners-type videos or just new people to invest in. Enjoy!
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How to invest $1,000 into the stock market. That’s what I’m gonna share with you guys here today. If you’re new here I am Jeremy. And today we’re gonna talk a little bit about investing in the stock market. Let’s say you have $1,000 on the sidelines, how should you go about investing that that’s what we’re going to get into today. I hope you guys really enjoyed today’s video, I hope you get a lot of value out of it.
Let me get across one point before we start getting into like, like how to actually invest this money, how to deploy out this $1,000. Okay, first and foremost, make sure you always have some savings on the sidelines and what I call emergency money, at least a few $1,000 of emergency money.
That’s on the sideline at all times before you really start investing because what can end up happening is let’s say you have an emergency situation, that’s something that really needs money, okay, you get a flat tire for your car, or something health related happens or something in general that comes out of the ordinary, and it costs you money, okay?
If you don’t have any emergency money, and you already started investing in stocks, then essentially what you’re going to have to do is you’ll have to sell your stocks you that $1,000 you have in your stocks to go ahead and use that money towards your emergency expense.
You don’t ever want to be in that situation. Because stock prices can be volatile. What if you’re in a time you invest? It happens to be at a time when the stock market struggling or one of your stocks is struggling? Then you have to go and sell it a loss?
Is that something you really want to do? No. So before you really start investing, make sure you have some emergency money on the sideline that’s like untouchable money, just in case the worst happens. Okay. And the other point I want to just kind of drive across is some people think $1,000 isn’t enough money to start investing.
I tell you, you have to start somewhere, whether it’s a few $100, like I started my first investments were like $250, then I built up to like $500. And then I started investing $1,000 at a time. And now it’s you know, several $1,000, if not 10s of 1000s of dollars at a particular time.
I didn’t get there because I was like, Oh, let me just wait a million years until I have $10,000. Saved No, I started with hundreds of dollars, we built up to 1000s, then 10s of 1000s, hundreds of 1000s and kept building from there, okay. And you want to do something very similar, where you start with smaller amounts of money, because it’s the best, that’s the best, okay?
When you start with smaller amounts of money and start building and all sudden you go from you know, maybe three figures and then four figures, then you have five figures in the market, okay, things start to get real fun. And you just kind of get that process, you get that experience in the market. Okay, so there’s no such thing as all it’s not enough money, you only have $1,000?
No, okay, if you have $1,000, there’s plenty to invest in the market. Even if you have 100 bucks, even if you have 200 bucks, so long as you have some money on the sidelines and you feel comfortable investing, you feel comfortable deploying that money out and trying to make that money into more money.
As long as that’s the situation for you, then you’re ready to rock and roll regardless of money. Okay, and one of the big reasons for this, okay, the biggest reason I can actually give like the credit to is honestly an app, an app that’s been created called Robin Hood. Now there might be some other apps out there that do similar, but I’m not sure okay, so Robin Hood, basically, in order to place a trade with them, it is free, okay, it is absolutely free.
So there’s no Trade Commission to go ahead and buy and sell shares with that particular app called Robin Hood. Whereas in the past, okay, when I first started investing, every time I bought or sold a stock, it cost me $20. Okay, if I want to be exact, it was $19.95. Every time I bought or sold a stock, whether whether I had one share in that stock, or 20 shares or 100 shares or 1000 shares, okay.
And so needless to say, when you are investing small amounts of money when I started, it was actually a very, very negative thing. I wish Robin Hood was around back when I first started investing because I would have been in a situation where I could invest way more money where I could have basically started getting gains right off the bat.
Whereas in the early days, when I was only investing a few 100 bucks at a time, I was having to get like a 5% gain or 6% gain or something like that just to break even on the stock because the Trade Commission was taking so much money out Okay, so needless to say you guys have a really good situation because you have an app called Robin Hood that’s free.
Robin Hood is not very international as of right now. However, there may be some apps out there in the international markets that maybe do something similar of basically free trades and as a definitely an awesome thing for you guys out there. Okay, so you have this thing called Robin Hood.
So that allows you to basically invest smaller amounts of money because you don’t have to pay those trade commissions by the way most other brokerages online brokerages nowadays, they don’t really charge 20 bucks anymore, most of them charge around $5 now, okay.
So if you go with one of the other brokerages like Fidelity Investments, TD Ameritrade, Scottrade ETrade, someone like that, you’re probably paying around $5 per trade, so you don’t have to go with Robin Hood. But in my opinion, if you have small amounts of money, hundreds of dollars or maybe a few 1000 it generally makes sense to go ahead and use Robin Hood.
Okay, so awesome. You set up your Robin Hood account, you enter in all your information, you got the setup, and hopefully you’ve already researched what to look for in stocks and things like that, okay, I have a full course link down there in the description that goes into everything I look for when picking stocks I’ve been in the market for over a decade, I’m pretty successful at doing the sorts of things.
So if you want to learn that way, you can definitely learn that way that’s linked down there in the description. But hopefully you have like this knowledge Bank of of what to look for in a stock. So you’re ready to actually start investing and actually deploy this $1,000 out.
So what I would suggest you kind of first start with is looking at a stock, you know, thinking about a big company, okay? Or really like big tech company, okay, maybe it could be something like an app, or maybe it could be something like a Facebook, I would include Amazon, I would include Google into this list.
But Amazon’s like, 18 $100 a share. So if you have only $1,000 like you couldn’t even buy a whole Amazon share Google, I would include them but they’re like $1,000 a share or somewhere around there, roughly. So that would be all your money essentially. So but need to say something that’s a really big tech company could be a Microsoft, a Facebook and Apple, someone like that, that’s very well known.
So you get some experience investing in some of those really big Goliath companies that are super, super profitable, that their business models are super, super relevant and things like that, okay. So you pick something like that, okay. And Mr. Softee will put up here, Microsoft as well.
Okay. Something like that one of those big huge companies that have hundreds but alibaba alibaba is a possibility, okay, we’ll add Alibaba, to this kind of bank here. Alibaba is a Chinese conglomerate in China is kind of almost like, you know, a little bit different business model than what Amazon has.
But in terms of like the importance to, you know, Amazon to the United States, Alibaba, is that for China? Okay, so one of those big massive companies, you deploy some money into one of those so great, and now you have a really, really big company. Okay. Now, the next talk, I will try to go ahead and find is something that is a nice dividend payer, okay.
Let’s just say yeah, dividend payer, which a dividend payer essentially, is a stock that pays you out dividend money, generally every three months. So just for holding that stock, you actually get money deposit in your account dividend money, that you can go ahead and buy more shares of that stock, you can go buy another stock, you could take that money out of your account and go spend it or save that money or do whatever you want with that money.
But basically, it’s dividend money that comes to you, okay, and you can just go to like Yahoo Finance or something and started searching in different stocks, different ticker symbols, and you’ll see different stocks have, you know, dividend money they pay out, they’ll say their yield there that you can actually go to the history and see the history for how much money a lot of these stocks have been paying.
Okay. So that’s awesome. So now you have one stock, that’s a big huge tech company. Okay. You have one stock, that’s a nice dividend payer. Alright. So we’re getting some experience. Now you’re noticing that the main kind of principle I’m thinking about when you’re starting out in the stock market, and you’re investing and investing a smaller amount of money, is you want to get experience in different types of stocks.
Okay, so So far, we have big tax something related there, we have a big dividend payer, now we’re going to think about something that is a growth play, okay, something that I like to call a growth play. Now a growth play in the stock market is when you’re investing in a stock that has a lot of growth. And when I talk about growth, I don’t mean its stock price going up.
A lot of people get confused when they get you know, first start in the stock market in the first few months or first year, they think of being a growth stock means a stock that has a stock chart that’s going up or something like that. That’s not at all what we’re talking about when we’re talking about a growth play a growth stock. What you want to look at is the revenue growth.
Now you can see this information on any company’s Investor Relations page. So let’s say you wanted to look into like Zillow. Okay, you like min Zillow, that must be a growing company. You go to Zillow Investor Relations page and go ahead and look at their latest 10k.
Which is otherwise known as their annual report their latest 10 Q, and it will go ahead and show you how much that company’s grown the revenues and that’s really what we’re looking at, we’re looking at revenue growth, how much is a company growing when it comes to revenues?
Okay, so that’s what we’re looking for. They’re a growth play. So now we have some experience. We’ve invested into a big tech company, we’ve invested into a dividend payer that’s going to consistently pay up dividends. We’ve invested into a growth play a company that’s growing revenues very quickly and has a chance to maybe grow revenues, massive amount into the future.
Okay. I’ll give you a few more examples of growth plays. Okay. Growth play could be something like a Tesla Tesla for this latest quarter is going to grow revenues somewhere around 60%. Okay, Zillow, I just mentioned Zillow, that’s a huge growth company. Okay. Even a company like Facebook is a growth company, even though they’re already a massive company to company growing revenues at you know, 20%.
Plus, Alibaba is a company that still has unbelievably strong revenue growth in the mid double digits growth for Alibaba there, okay. So there are a lot of companies, you don’t have to just look at, like very, very small companies. They’re actually a lot of companies that are huge companies that have market caps in the 10s of billions or hundreds of billions, but are actually still growing very, very quickly.
And you could go ahead and use one of those stocks as kind of a growth play there. Okay. Then there’s one last stock I would buy here, okay? And what this stock would be is a stock that you really believe in a lot for the long term, the company that you would say, Okay, if I had to put all this $1,000 into this one stock, this is a one stock I would feel the most comfortable with.
This is a business model, I know the best, this is a company I like the most. Okay, so let’s just call this your number one. All right, let’s call this your number one. And for this one, it could be a small company, okay, it could be something that has hundreds of millions of dollars in market cap, which is super, super small.
It could be something that has ever been a billion dollar mark cap, it could be a huge company that has hundreds of billions of dollars in market cap, whatever is your number one that you believe the most. And it could be an Nvidia, it could be an AMD stock, it could be an apple stock, Alibaba, it doesn’t matter.
Whatever that one stock is that you understand the most about, you’re like, man, if I had to put all my money in this one stock, this is a particular stock, I would go ahead and do that with Okay, if you have that one stock out there, that’s the fourth stock you want to buy, you want to get experience.
And you want to get some confidence built up in yourself, especially when you’re investing smaller amounts of money. And you got to have some conviction for a particular stock. Now, once again, if you’re a little confused on like how to do research on these stocks, make sure you’re using something like Yahoo Finance, make sure you’re going to the company’s Investor Relations page.
Okay, so let’s say you want to look at Nvidia, okay, you’re interested you like know a lot about Nvidia. You’ve been a gamer in the past and all these sorts of things, okay, you’re like I know in videos pretty well, I know their products, I know things are successful, I know that things are not successful out, okay.
But you want to take your research to the next level, you want to understand the financials. Once again, literally go to Google, open up your Google page, go to Nvidia Investor Relations, it should be the first thing that pops up there, click on that, start reading through the reports. I’m talking about the 10k.
I’m talking about the 10 q Okay, their annual report in their quarterly report. Those are phenomenal, you’re going to get a ton of information on there, you can even go to a tab called events and presentations. And go ahead and listen to the latest conference call or investor meetings that have happened in the past.
Okay, and you will over the course of probably six hours, get a ridiculous amount of knowledge built up in your mind. Oh, what that company does it why you have strong conviction that that’s a great stock. Okay, so if I look at this, this is kind of the perfect scenario for investing your first.
$1,000 in the market, you buy one stock, that’s a massive tech company that you know really well you know, they’re super profitable and you know, you know, there’s a good chance you’re gonna make money on a stock you on one stock, that’s going to be paying out dividends, probably every three months, that’s awesome. You get to get experience owning a dividend stock, collecting that dividend money every three months going ahead and deploying that into new stocks.
You own a third stock, which is a growth play a stock that you think has you know, huge potential to grow into the future and a type of stock that just has massive massive potential there and then you own a force stock, which is your number one the stock you believe in the most of any stock in the stock market.
It could be a big tech company, it could be a small tech company, it could be a dividend company, it could be a growth plate, it could be a value play could be anything across the board. But that fourth one is just a company you believe in the most and you’re just trying to get confidence in yourself that your judgment and your reasoning is correct.
Okay guys, so that is how you invest $1,000 into the stock market. Hope you guys really enjoyed this. As always, if you have a question on anything we discussed in today’s video or something I didn’t address, make sure you ask it in the comment section. I will try to get back to as many guys as possible and also make sure you guys hit a thumbs up if you got some good value out of this here today. Thank you for watching and have a great day.