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Good day subscribers thank you so much for joining me today i am jeremy this is the financial education channel and today we’re talking about how would i invest ten thousand dollars specifically $10,000 into the stock market so there’s many different ways you can invest $10,000 where we’re sticking to the stock market how would i go about investing that in this
Videos our follow up video to a video i did last month called how to invest $1,000 in that video just is phenomenal like over 14,000 views on the first month which is like ridiculous for this channel to get any video over 10,000 views in the first month so that’s an amazing video so i figured if you guys are interested in that last video you’re probably going to
Be interested in the $10,000 video so if you have $10,000 saved i would say you you’re probably a little more experienced you might be even a little bit older than someone investing that first thousand dollars so you might have a little bit more knowledge to your game so we’re assuming that you have a little bit more knowledge now at this point and how would i
Go about distributing that money all around guys so leave a thumbs up if you enjoy this video today leave me a comment if you have any questions or just one comment in general i love to see those goes from you guys let’s get into this so step number one i would pick out this stock your most bullish it so the one stock that you’re like if i had to put all $10,000
Into the stock this is a stock i would do it if i had to tell my best friend if i said tell my my family members one stock to invest in this is the one stock i’m talking about that one stock you’re just so bullish on take out that one stock and then put $4,000 into it so you’re putting 40% of your total amount of money you have to invest in that one stock which is
A pretty big amount it’s a pretty big amount but at the same time i’m a believer and this is this is my philosophy i’m a believer that your main stocks your number one number two stocks special your number one should always have the majority or money into that stock which is why i think it’s fair to have 40% of your money into that stock i think your number one
Stock should always be the base investment all the others because it’s your horse it’s the one you believe in more than anything guys so what i just put a little small amount of money in it when you could put a much larger amount of money in it first stock you believe in a lot more than all the other stocks guys so that’s why i did i think a big amount of money
Like that you know forty percent should go into that number one stock and that’s honestly the way i’ve done it whether i was investing $1000 $10,000 $100,000 i’ve always had my number one stock always been at least at least 40% of my portfolio so think about that guys i think it’s very important on number one step so we move on to step number two so now you need
To pick out a second favorite stock but the key to this second paper shopping step number two is you need to make sure it’s in a different sector then what’s your number one stock was because you’re in your will get to step number three and how much you’re going to put in that stock but you’re going to put a quite a bit of money into that stock so you don’t want
To have too much riding just in one sector so say your number one stock was technology don’t make stock number two another technology related company at this point pick something from another sector maybe manufacturing maybe industrial maybe consumer discretionary maybe retail something like that don’t take the same exact sector because you don’t if that sector
Struggles or if that sector has troubles or whatever that sector becomes really competitive with everybody as a good chance that sector could struggle and if you have your pulse your main stock in that sector you’re probably going to end up losing money or your your gains are going to be very muted than if you had something in a different sector so pick out that
Second favorite stock make sure it’s in a different sector than what that first stock was that goes into step number three which is then you’re going to put $2,000 into that second stock so basically between scot number one and stock number two you’re going to have 60 percent of your money in two stocks which is once again what i believe is it’s fair i believe
That worth doing it’s 60 percent of your portfolio because these are two main horses and your number one stock you have basically a hundred percent more money in than stock number two so i think that’s very key guys make sure that second stocks in a different sector though that i cannot reiterate that and so now we’re gonna move on to step number four we basically
Have another four thousand dollars a 40 percent of portfolio to basically invest at this point so step number four you’re going to pick out a third in our first company okay but the third and the fourth company need to be safe companies i mean i know nothing technically face out there but it needs to be safe companies big companies big corporations that have big
Competitive moats that their business is not going away anytime soon i’m talking about companies like a coca-cola like a mcdonald’s like a man i’m trying to think like a walmart like like a procter & gamble a johnson & johnson some of these huge corporations so you know those monsters that they’ve been around for a hundred years and they’re probably going
To be around for another 100 years guys those are the type of companies you need to pick out for stock number three in stock number four make sure they’re huge make sure they’re safe companies make sure they’re not in there because the stock number one in stock number two they could be more risky companies more grow especially if you’re more of a growth investor
So you need to have some some diversification as far as some state companies in there especially when you have the amount of money you do and so now that you have your third and fourth stock that goes on the stock the step number five which is you’re going to put $1,000 in each of those stocks so basically 20 percent of the portfolio total is going to go in stock
Number three in stock number four though safe companies that in case your other company struggle at least those ones are kind of hopefully going to hold up things because those type of big safe companies they don’t usually go down very much unless the entire market goes down those ones usually either stay steady don’t really move at all or they just move up a
Little bit over time guys it’s just kind of the way those those big huge you know two hundred three hundred billion dollar market caps that’s kind of the way they move so next up here we’re going into step number six which is basically you’re going to have two thousand dollars left over at this point so you’re going to have twenty percent of your money left over
Now what do you do with that twenty percent of your money the last two thousand dollars to invest so that goes into step number seven which is you’re going to use that money to buy whenever one of those stocks that you own drops more than five percent if that happens which is a pretty good chance that’s going to happen you’re going to be only in for stocks two
Of them might be growth stocks right what stock number one stop number two those ones could be kind of volatile especially have their growth companies we’ve seen growth company after growth company go down a ton or go up a ton in a rapid pace so you basically have two thousand dollars on the sidelines and anytime one of those stocks go down over 5% you can then
Distribute some more that that two thousand dollars left over into that stock to then lower that cost basis and if you think oh no i’m such a good investor my stocks are not going to go down it doesn’t matter how good of an investor you are when you first invest in a stock in the short term we’re speaking about the short term in the short term that stock has a one
And two chance of 50% chance to go up it has a 50% chance to go down and that’s just the way it is in the short term that’s the way it is as soon as you stick that money in that stock it might go down and light go up there’s a 50/50 chance it just does not matter guys unless there’s like let’s say if there’s a huge bull market going on right then the chances your
Your stocks can go up it’s probably greater than it’s going down and if there’s a huge bear market going down the chances your stocks going to keep going down what you buy it is much higher in a short term than it is going up but unless one of those two situations are going on which those two situations don’t happen often you they might go down so you might as well
Have some money left over to go ahead and stick into those other stocks and kind of and lower your cost asis guys if you like the stock number one or stock number two if you like them that let’s say there are at $50 sharing when you bought them why will you not want to buy them at $45 a share or $40 a share as long as you still feel the thing about the underlying
Business fundamentals it’s like going to the store and seeing a pair of jeans and you just love that pair of jeans and it’s $30 and you’re like man i really want two pairs of those jeans but i can only afford one today so just going to buy one pair of jean and then else then you look you go by the store the next day and those jeans are $15 now and you’re like oh
Now that the $15 i don’t want any more that makes no sense so why would you do that with the stock market guys so make sure you have some money left over by when your stocks dip more than 5% lower your cost basis as long as you’re still as comfortable the underlying fundamentals of the company as you were before and i take this into our last and final step here
Step number eight which is basically you’re going to buy and you’re going to sell those stocks over time as you feel fit so as time goes on you’re just going to find a buy and kind of sell you know maybe that stock number one it goes up a lot and then you’re like oh man now it’s kind of little overvalued in my opinion maybe i’ll sell it off and make my nut stock
Number two into my stock number one just kind of play it that way in back and forth and try to never own more than four stocks or less than four stocks as long as you are in that that bracket basically of of ten thousand dollars on you know anywhere near ten thousand dollars i think for stocks is about right for that amount of money because you don’t want to be in
Too many stocks with with that small amount of money well it’s not a small amount of money but it’s just a smaller amount of money you don’t want to be you know have 10 or 20 stocks with that amount of money input i don’t i don’t agree with having 20 stocks ever because how are you suppose to be confident stock number 20 in stock number one but that’s a whole other
Subject but you want you want to buy and sell them and you don’t want to own or less or more than four that’s just my opinion on that i don’t think that’s a smart idea you don’t want to go in too heavy because it is a decent amount of money unless you you know what you’re doing as far as that goes and you have tons of years of experience and you probably don’t have
Tons of years of experience if you have only $10,000 i mean generally people are experienced and have had great games are generally dealing with six-figure accounts or seven-figure accounts so but that’s kind of how you you want to play it you know buy and sell as you feel fit you know as companies begin to get overvalued one of your stocks you can sell them at off
And then buy some new ones and then just kind of play it that way until you kind of get up to the next ranking of 20,000 30,000 dollars maybe you can add a fifth stock or six stock or something like that at that point guys so this is how i would go about investing $10,000 if i was kind of newer to the stock market i hope you guys enjoyed this today leave a thumbs
Up if you did leave me a comment if you have any questions on this or you just want to comment in general or you think this approach is good i would love to hear from you guys on this if you just came across this video today and not subscribe that you may want to we talk personal finance on the channel we talk entrepreneurship i’m an actual business owner i give
Away so many in my business tips on this channel and we also talk the stock market and how to be a successful investor thank you for watching guys and have a great day
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How to Invest $10,000 By Financial Education
