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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 i’m teaching you guys how to safely invest in stocks a lot of people that come across my channel they don’t want to invest necessarily the way i do which is a little more aggressive not super aggressive but it’s a little more aggressive there’s
A lot of people that don’t want to take that type of risk they want to just invest in some stocks they want to be able to sleep well at night so i’m gonna teach you guys two strategies that are extremely safe extremely safe and you can still probably get some pretty good returns going this route i’m also going to teach you two things at the end that you absolutely
Have to avoid if you want to invest safely in stocks now me personally as far as me as an investor how aggressive am i well if this was a little baby this is like the least aggressive you could possibly be and this is maniac gambler down here i’m a little closer to maniac nimbler then little baby at the end of the day but at the same time you never want to be down
Here i was pretty close to down here at one point in time and i lost a massive amount of money guys you never want to do that when i stay in this zone i make a lot of money over time guys a lot of money and over here this is kind of what i’m teaching you guys today you know if you want to really take not very much risk but you still want to be involved with the
Stock market i’m teaching you somewhere around there and that is somewhere i’ll be investing when i’m 50 set you know 47 57 67 years old if i were you know blessed enough to make it that long then this is a way i will be investing coming that time guys now if you want to know more about how 27 year old jeremy invests and check out my brand-new 11 part stock market
Investing mastery series that goes into detail on how i invest in the modern day guys but let’s go ahead and talk about this guys so the first thing you have to understand before we get to the strategies is there’s no way possible you can invest in the stock market without taking some level of risk nothing is guaranteed in stock market investing i don’t care if
You buy every single stock out there you just diversify yourself like crazy you could still lose money in the short term it’s possible you could lose money in the long term very improbable like less than a point zero zero zero one percent chance i mean the whole economy would have crash forever you know the whole way we live i mean i would have to be like you
Know nuclear bombs going off all over the world and you know all a civilization that being knocked out or something for the stock market to go down over the long term but over the short term absolutely you could lose money in the short term i mean people that were investing in 2007 it when the dow was out 14,000 also the next thing you know the dow was at seven
Thousand two years later a year and a half to two years later guys and down was that seven thousand those people had just started investing in 2007 a lot of them lost 50 percent their money or at least were down 50 percent of their money you know we’re almost right off the bat in their investing career so nothing’s ever guaranteed in the stock market so if you’re
Looking to you know have a guarantee amount of your money don’t pick the stock market as me in that place because you can always lose money in the short term just remember that it’s never a hundred percent safe so the first strategy i like is you can invest in something like a fidelity spartan 500 index fund there’s several different index funds you you can go
With fidelity spartan 500 there’s just one of them and basically what this does is it verses faiz your money around the sp 500 stocks so usually the sp 500 is the 500 usually speaking the 500 biggest public companies in america and that’s what’s in the s&p 500 so your money is diversified around those and basically however much the sp goes up your money goes
Up or down you could go down as well it will go down generally speaking over over time you’re gonna get it probably a seven to eight percent return your money over the next 40 50 years or something like that guys that’s the probably one of the safest ways you can do it an index fund i love that one guys when i’m older that’s absolutely one of the ways i’ll go –
I’ll go the next way the one i like the most out of all these ways guys honestly is there’s something called the dow 30 the dow 30 is generally the the 30 biggest companies in the world these companies are so well diversified they’re tens of thousands if not hundreds of thousand employees phenomenal board of directors team phenomenal executive management they have
You know billions of dollars generally speaking on the balance sheet in cash investments super safe company some of the biggest in the world like the apples of the world microsoft we’re talking to home depot coca cola’s huge corporations right huge corporations this strategy is basically you pick out 15 of those 30 companies that you like the best okay so you know
Basically one of every two companies you need to cut off the list that you know like i don’t like this one as much i like this one more so you pick the your 15 favorite down 30 stocks and you you equally invest in all those so for instance if you’ve got fifteen thousand dollars to invest right you’ve got 15k awesome you put a thousand dollars in each of those
Stocks so you got your money in 15 different dow 30 stocks and you just keep it there guys that a lot most of those stocks will pay you dividends so your amounts will increase and then you can even buy more stocks with those and more stocks with those over time that isn’t probably one of my favorite investing philosophies as far as if you’re really looking for
Safety you’re not really looking for huge gains and those kinds of things guy’s absolutely phenomenal and you’re gonna go up as much as those 15 stocks go up in you also you’re gonna get to collect dividends and it chances any of those stocks are gonna go out of business you know in the next 20 30 40 years extremely slim it’s possible it’s possible but there’s a
Very low guys and remember your versified around 15 different ones at the end the day so i really love that one that’s probably one of mine you know favorite out there now as far as to invest things you want to stay away from the first thing you want to stay away from if you’re trying to invest safely in the stock market stay away from margin stay away from options
Should stay away from short selling margin means to take out debt to invest more money so if you got one dollar you know a lot of brokerages will allow you to invest $2 you could actually take out debt this is something you can try to do i failed at it i lost a lot of money doing this guys you don’t really want to mess with margin you listen to warren buffett on
This don’t even listen to me listen to what warren buffett has to say warren buffett probably the greatest investor of our generation what is warren buffett say about this if you’re dumb you have no place using it and if you’re smart you don’t need it so on margins just stay away from that guys you can lose so much money so fast and get margin calls just don’t
Mess with margin trust me on that don’t mess with margin the next one is as options the problem with options are you’re betting that a stock price will be at a certain price by a certain date so you’re putting yourself in a situation where for us that stock is not at that particular price on that you could potentially lose a hundred percent of your money guys
You don’t ever want to put yourself under a date you know it’s really hard to do i i sometimes invest in a longer term at date out options it’s still highly risky guys i would not necessarily i would say options definitely stay away from it if you’re a beginner i would say i would stay away from it even if you’ve been in the markets for three four or five years
You really need to be in the markets for at least seven plus years of investing and actually doing it to even begin to start messing around with options guys it’s highly risky option so i would say for most people don’t touch options and last one short selling absolutely you should not be doing this if you’re trying to invest safely short selling is when you’re
Betting basically against a stock well guess what you could lose unlimited amounts of money when you’re short spot to sell especially if you don’t want a stoploss on that guy’s you would literally lose you know hundreds of percent whereas if you just go long a stock and say somehow that’s talking bankrupt which hopefully if you are doing my investing strategy you
Never you never ever do that because you were investing great balance sheet companies but say you did you say you invest in a company i had a poor balance sheet they went out of business the most you could lose a hundred percent when you short so you could lose thousands of percent you could lose hundreds of percent especially if you don’t have a stop loss on it
Guys so short selling don’t don’t even touch that in the second way the second thing you do not want to mess with if you want in that in that safely in the stock market don’t ever invest in growth companies growth growth companies or companies generally that are growing very rapidly they generally have very high p/e ratios which means they’re more overvalued than
Most stocks but of course if they’re growing and they keep that growth rate up it’s great and it’s all phenomenal the problem is as soon as those growth companies slow their growth those stocks usually get hammered and drop 30% 40% 50% in no time why because the the investors that are investing in that stock are investing in for a lot of growth if also in that
Growth slows to a standstill and that company has a super high p/e guys those stocks usually get cut in half very rapidly so do not mess with growth stocks and especially growth stocks that don’t have a p because they’re unprofitable if you’re trying to invest safely in the market that is it those are not the type of stocks anybody should be messing with whose begin
Investor or someone that’s trying to invest safety those type of companies are more for professional investors or people that have been in the market a very very long time who know how to handle it if that stock goes down 20 30 40 50 60 percent whatever happens out there guys they know how to handle it maybe they hedge their bets and those kinds of things guys so
Keep that in mind stay away from growth stocks stay away from margins short selling stay away from options if you’re trying to invest safely in the market you know the dow 15 i like to call it you pick your 15 favorite dow 30 stocks invests equally around those that’s one of my favorite investing strategies if you’re really trying to do a safe or in an index fund
Something that tracks the s&p 500 so you only gain as much as the the sp goes up or down guys so i hope you enjoyed this this is how to invest safely in stocks thank you for watching and have a great day you you
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How to Invest Safely in Stocks! By Financial Education
