Stock Market For Beginners 2021/2022 - BEST STOCKS FOR BEGINNERS TO BUY

stock market for beginners 2021 edition welcoming guys i do these videos each and every year this is to help out the folks that are just getting in the stock market or maybe you've been in the stock market but you need a lot more guidance i hope this video helps you out tremendously we got so much to get into okay we're gonna talk about all the basics you need to know when it comes to stock market investing like literally like what is the stock market what are stocks how is corporate formation done like what is a ceo what is a board of directors who votes in like a ceo or a board of directors and things like that we'll talk about corporate formation we're going to talk about how to buy stocks how to sell stocks exactly how i do it okay so we'll cover all those basics then after that we're going to get into the moderate section all right and we'll talk about ways you can make money in the stock market some people think there's just you know like one way to make money in the stock market that's actually a ton of ways you can make money in the stock market so we'll talk about that we're going to talk about taxes and stocks how are you taxed on money if you make money in the stock market it's actually a little different depending on your situation than a usual situation okay then we'll get into how do you value a value stock how do you know if a stock is a good deal or not all right so we'll get into that then we'll talk about the mentality i personally use when i'm investing the thought process the psychology i use for investing okay because so much of investing is a mental game and then we'll talk about how do you research stocks like what do you actually look for like what type of reports are you reading and things like that we'll get into that okay that's a moderate section and then last i left up the more complicated section okay now this isn't even like super super super complicated stuff but we're getting more to that side toward the end of the video okay we'll talk about portfolio diversification like how much money should you have in certain stocks and things like that we'll talk about how to invest based upon your age so if you're 45 years old and you're watching this how do you invest if you're 20 how do you invest okay we'll talk about that we're going to talk about options stock options we'll talk about leverage because those are terms you'll hear in the stock market like if you start stock market investing you'll hear things like you know somebody bought a bunch of call options if you don't even know what that is you're like i don't even know what that is what the heck is that so i'll explain to you the base around that okay then after that we're going to get into how do you value growth stocks a very complicated subject i'll kind of give you a little insight there and lastly i'll give you some some you know what i feel are great beginner stocks for people that are newer to the stock market that have been investing for a year or less the type of stocks that are usually good for beginners out there because it's so important when you're getting in the stock market at first your stock market began right like the most important thing is you get off to a good start and you start having some success okay so this is going to be a value-packed video to the sky literally all i ask is that you guys smash that thumbs up for me so it helps us out in the youtube algorithm and that's it okay i appreciate all you guys now if you don't know anything about me because these videos usually get a lot of views over the course of a year or two and you might have never seen one of my videos you might have no clue about me you might be wondering are you in the right spot you're definitely in the right spot for this video and you'll want to sit tight for this whole one okay some facts about me i've been investing in the stock market seriously since 2008 2009. i was a stock market for beginner at one time so i always try to think when i'm doing these videos i try to think back to that time period and the type of things that you know tripped me up the type of things that like i needed to know and those sorts of things so i've been doing this since then i hit 200 000 just in stocks alone before i was age 25 and it's always something i'll look back and be very proud of okay that was while working at a convenience store as a manager okay i've been on youtube since 2016. and i have literally i don't know probably like thousands of videos between my different channels and so you know if you know me you probably know me from youtube i live in las vegas mainly i'm at my arizona house right now we have a second house out in arizona but i mainly live in las vegas i have millions invested in the stock market the majority of my personal wealth is tied up in the stock market so like i actually do this for a living i'm not just like putting a video together like some people you know do these videos and like didn't even have much money at all invest in the stock market and they you know want to teach people it's like you got to put your money where your mouth is and that's something i do every single day in and day out i got a wife i got a couple kids i'm 31 years old here today my my work day usually just consists of researching stocks investing in stocks making youtube videos and dealing with my private stock group and then some funny things uh about me i can't spell people know that if they watch my channel i can't pronounce certain words a lot of people know that okay and i got a hand rating of a seven-year-old and you guys will probably see that throughout the video i try to write this neat this is me writing neat for you guys okay so anyways we got a lot to get into hope you guys enjoy this like i said if you don't mind just smash that thumbs up button that helps us out huge in the youtube algorithm that's all i ask if you want to join stock hub it's absolutely free to join in there that's a stock market discord chat and that'll be linked in the description and without further ado let's get into this already folks let's start getting into this okay so first off we're going through the basic section here all right so on the basics what is the stock market literally okay so you're gonna hear like the nyse the new york stock exchange the nasdaq things like that okay basically what they are is markets where shares are traded back and forth ownership in corporations are essentially traded from one investor to another or trader to another okay there's buyers in their sellers of pretty much every single stock every single day okay somebody wants to sell apple stock today and somebody wants to buy apple stock today but usually since the stock market is so big there's actually like huge numbers and i mean absolutely huge numbers of buyers and sellers literally every single day like a lot of these stocks are trading like millions of volume or tens of millions of volume day in and day out right now the market as far as the stock market is usually open monday through friday holidays obviously it's different it'll close sometimes for holidays and things like that and the hours vary depending upon where you live in the world okay but monday through friday is usually when you can do business and it's usually in the morning to early afternoon is when the markets open all right but obviously depending on where you're watching this in the world the hours will vary what are stocks if you buy a stock what the heck does that even mean okay stocks are actual ownership in public companies and a public company is essentially a company that you and i can buy into okay there's private corporations which is like i don't know the local uh automobile dealership that's probably not a public company right or the guy that's got a landscaping business over there you can't just buy ownership in that it's not like it's listed on the new york stock exchange or something like that like that's his private business if you want part ownership you need to talk to him and try to work out a deal right these are like usually huge corporations that are billions tens of billions or hundreds of billions or even nowadays a trillion plus dollars in valuation that you can actually buy part ownership in okay and that's the way to always think about it you're actually becoming an owner of this company so if you say if you look into apple and you know apple corporation right we all know apple make macs and iphones and ipads and all these sorts of things right and air pods let's say you're looking at apple and you're like i like apple as an investment they make a lot of money i've looked at the valuation i've looked at the earnings i looked at the income statement balance sheet things like that great so now you want to go in ahead and buy apple stock all right you buy apple stock you are now literally part owner of apple corporation now mind you if you buy one share just a few shares you are very very very very small owner of apple but nonetheless you are literally an owner of the corporation now part owner of the corporation now and that is pretty dang cool and that's what something that always attracted me to the stock market outside of just like being able to make a lot of money in the stock market is like actually becoming an owner of these corporations that continue to grow and thrive and you see these companies get bigger and bigger and it's like you know if you're just a consumer of them you know you're not really like you're not getting into the joy right but when you can become part owner of these corporations and as they do good and they launch a new product that does amazing a new service and that stock price goes up you get to participate in that and that is the beautiful thing about the stock market okay now let's talk about corporate formation for a moment here okay so corporate formation at the top you have the owners the shareholders of the corporation which if you bought you know some shares of apple let's imagine that okay you're a shareholder of the company now you're a part owner and you're at the top okay now as a shareholder of the company you get to vote for the board of directors and everybody vote everybody's votes are tallied up to see who got voted in or who got voted out of the board of directors okay now the board of directors super super important if a company is doing really really bad like you know the stock price is going down revenue is going down profits going down all those sorts of things the board of directors is going to end up getting voted out by the owners the shareholders they're going to vote out that board of directors okay the board of directors is who decides who's the ceo cfo ceo of the company okay so you actually aren't directly voting for the the people that are running the business but you are voting for the people that make those decisions on who's actually going to be the bosses of the corporation and that's really important so you're at the top you've got the board of directors right under that these people aren't making the business decisions for the company day in and day out it's not like they're deciding whether to you know launch some new product it's not like these guys or gals that are on the board of directors it's not like they're saying um you know let's say it's apple apple's board of directors it's not like they're saying hey we should launch a 14-inch you know new macbook next year they're not making those decisions they're making these sorts of decisions and some other big decisions okay the c the ceo is essentially the big boss that looks over the entire organization and at the end of the day like they're the facehead organization if things go really well you know everybody applauds for them if things go really bad they're you know obviously going to be out likely very soon they're like the quarterback of the team essentially okay everybody's looking at them and that's the face the cfo is responsible for all the financials very very important position and sometimes if a company loses a cfo you know what ends up happening a lot of times our stock price goes down big time it's usually a lot of people don't like that okay a coo is essentially the chief operating officer and this is kind of like the business runner it's uh arguably one of the most important positions in the entire company if not you know obviously the ceo is always the most important but i think you know coo is actually number two so many people put credit in cfo cfo is super important but i think the coo is actually more important under that you have other executives you have under that you have middle managers and then you kind of have everybody else okay and so that's how big corporate formation is done as far as how many people are on the board directors it depends on the company sometimes it's like six eight ten twelve i've seen many different numbers out there over time okay so that is huge there now how do you actually buy and sell stocks all right well first you need to set up a brokerage account it's going to be like an online brokerage account there are a million different companies you can use okay uh depending upon where you're watching this in the world some of these companies i have up here might be available to you some of them might not it depends not every company is available in every market okay but i can tell you like the majority of people that watch my channel are on one of these three platforms specifically robin hood fidelity or td ameritrade those are the three biggest for the people that actually watch my videos each and every day those are three biggest for people that are in my private group and things like that okay and those brokerages all offer free trades essentially meaning like all you have to deposit is whatever amount of money you want to buy for that stock you actually don't have to pay a commission every time you buy and sell it used to be back in the day like when i got started was like 20 commission every time you bought or sold a stock that no longer is like that okay personally i've been with fidelity investments since 2008 2009 and i have nothing bad to say about the company and so you know take that for what it is but you know when you do business with somebody for you know well over a decade and you have nothing bad to say about them that's probably a pretty good sign for a corporation out there right so those are the three main ones but like i said there's a million others you can do okay as far as when i go to buy a stock if the market's open and it's during trading hours on monday through friday and the market's actually open and i'm going to buy a shares in a company what i will do is i will buy them at market price i get to see what the company's trading at you know you can download something like the stock tracker app and keep track of all your different stocks you can see how exactly where it's trading at that particular time you can also see you know the the live action of that stock being traded on these different apps like robinhood fidelity to the ameritrade things like that so i get to see that so i'm going to go ahead and buy basically at a market price you're going to say market order and that basically means it's going to get traded at as soon as you hit that button it's going to get traded at whatever essentially that stocks price is pretty much trading at right after you hit that button okay and that's usually good for me i'm not worried about one penny here one penny there i'm making long-term investments in companies and if i'm worried about a penny here penny there uh you know it's probably not the right investment for me i'm worried about making you know uh let's just say a lot of money in a stock not worried about a penny here penny there okay as far as if the market's closed you can still put in a buy order for stock it won't go through unless you have like after hours trading or something like that on which this is a stock market for beginners video so none of you guys will have like after hours trading or anything like that enabled on your accounts but essentially if i'm putting in an order and the market's closed i like to put it for a certain price because you never know how the stock's going to open that next day it can open way up way down you know you don't know and so you could end up paying a really bad price so if the market's closed and i want to buy a stock i'll put it so the next day it will buy but it will only buy it if it's if it hits a certain price now if it doesn't hit that certain price the shares don't get bought right you put in a buy a market price when the market's open it's getting bought at whatever price it happens but when it's at a certain price it will only get bought if that price gets hit okay same exact thing when it comes to when i go to seller stock if the market is open i will sell at market price like because i get to see what it's trading at okay let me sell it at market price okay now if the market's closed i will put once again it do sell at a certain price because i wanted to you know obviously i don't want to get you know a bad deal on the whole situation okay so this is your base base information around the stock around the the stock market and like i said stock tracker app is a phenomenal one as far as an app to kind of download i use yahoo finance as well i use cnbc for keeping up with big information because cnbc usually breaks a lot of big news stories before others do and things like that so those are kind of some of the main apps i use or other apps out there but this is the base based information for stock market beginners okay now we'll get into the moderate we're going to talk about the ways you can make money in the stock market we're going to talk about taxes in stocks that's always a popular subject we're going to talk about how to value value stocks we're going to talk about the mentality i personally use when investing and lastly we'll talk about how to research stocks and then we'll worry about getting to the complex hope you guys are enjoying this already folks now it is time to get into the moderately complicated subjects okay so now we'll talk about how to make money in the stock market different ways we'll talk about my mentality we'll talk about how to research stocks what to look for we're gonna talk about how to value value stocks and lastly we'll talk about taxes and how that whole situation works okay so ways to make money in the stock market there are many different ways okay the main way the main way to make money in the stock market is to buy low and sell higher so buy a stock for a dollar and sell it for two dollars essentially okay or whatever price it is just the bottom line is selling that stock for more than you paid for it over time that's how most people make money in the stock market that's how i make the majority of money i make in the stock market when i sell for gains i make way more money off that than i actually do from dividends i receive a good amount of dividend money each year which dividends is another way you can make money in the stock market that's essentially money that's paid out to you from these corporations that you own stock in and it's just like part of their profits they take it and they pay it off to you as shareholder you can see all this information even on something like yahoo finance you can see their past dividend history you can sort through that you can see their dividend yield all those sorts of things okay but then a day like this is the this is like how i when i you know make money from the stock market the majority of the way is from doing this and not from dividends okay but dividends is phenomenal and you build up that dividend cash flow you get those dividends thrown off to you and then you can do whatever with that money like you would go spend that money if you want what most people you don't do with that money essentially is you put that into more stocks or if you're just focusing on dividend stocks you put into more dividend stocks you build that pile of money bigger and bigger and then the dividends that are paid out to you the next year or even bigger than the previous year and you put even more money into it and the like the pile just grows and grows and grows and you know somebody like warren buffett his company berkshire hathaway they make billions of dollars a year in just dividends that are thrown off to them from huge corporations out there it's unbelievable okay now obviously you know not everybody's gonna get to a level where they get billions of dollars each year thrown off to them in dividends but if you focus on dividend investing let's say over 10 20 30 years there's definitely a good probability you can get to a place where you're making 100k plus a year just from dividends okay options another huge way that people make money in the stock market but when it comes to options people lose a lot of money in options as well okay so you know stock options you know whether you're talking about like selling premium uh writing calls or rating puts or whether you're talking about like you know basically buying call options buying put options and things like that it is a way you can potentially make money in the stock market most people that straight up buy calls or puts although sometimes those can hit huge most times those expire worthless just something to keep in mind there okay you can make money from short selling stocks obviously all these ways you can lose money but you know short selling stocks it's a tough thing to do the reason is the stock market mainly goes up stocks mainly go up most of the time right and so short selling is very difficult to make money over time short selling stocks what you're doing when you're shorting it's essentially you're betting that a stock price will go down over time so most of the time if you're in the stock market you're going to buy a stock because you believe it's going to go higher in the future the company is going to be at a better place in three years from now five years from now 10 years now than it is today but when you're a short seller you're betting that a stock's going to go down and the company is going to get worse and worse over the coming years okay and so it's a really tough thing to make money but some people make some money here in their uh short selling okay buy low hold higher so this isn't if you're just holding a stock you didn't technically make money but you are kind of making money so think about it like this right if you buy a real estate property right let's say you just buy a house and that house you buy it for three hundred thousand dollars and over time that house is worth five hundred thousand dollars well you haven't sold it yet but at the end of the day like that house is worth two hundred thousand dollars more than you paid for you could sell it today if you want and take that game maybe you don't want it you still want to live in that house right but then the day like your wealth has still basically increased 200 000 same thing in the stock market you can buy into a corporation you don't have to sell it and at the end of the day your net worth is going to be higher your account's going to say a bigger balance right and things like that so you know those are the main ways you can make money in the stock market out there in this one obviously being the biggest of those okay my mentality when it comes to stock market investing very very important okay so i always look at companies from like what is this company gonna likely do over the next three to five years that's the main time frame i'm looking at you know if we're talking about seven ten years out it gets a little hard for me to really foresee what's gonna happen because so much stuff can change man i mean this is this is the world the world's crazy we just had in 2020 a once in a hundred year health event happened around the globe right shut down global economy who could have foresaw that like that's just crazy right and so you know i'm trying not to look super super far in the future because you just never know what's gonna happen i'm trying to really focus on what's going on over the next three three to five years with this company and i'm gonna research it heavily so i understand it on a super high level where i can make a bullish thesis on it which a bullish bullish thesis is essentially like why this stock's going to go up over time i can make that bullish thesis around this stock and go ahead and hold it and it can make me a bunch of money and i can sell out of stock hopefully a lot higher or i can be in a situation where i'm just holding it and maybe it pays me off dividends or something like that that's phenomenal as well that's my mentality i don't get caught up into all the short term stuff you know you're going to hear about terms like day trading you're going to hear about swing trading you're going to hear about you're going to hear about so many different things if you're in the stock market okay i don't get caught up into any of that stuff i am focused on making business decisions that's the way i personally view it i'm making a business decision to take my money out of my pocket and put it into this corporation over here because i believe by putting my money over there is going to grow to double the price or triple the price over time and the majority of stocks i'm getting in i'm trying to double my money or more over the next five years in that stock very rarely i will invest in a stock if i don't think it has at least the potential to double its stock price over the next five years doesn't mean i'll never consider it but most the time if i'm investing in stock it's because i believe that stock is going to 2x my money or more over the next five years pretty much regardless of whatever happens in the market because you know sometimes we're going to have boom markets bull markets where the market's going up like crazy you'll hear that term bull market just means the stocks are going you know up up up sometimes you're going to bear markets with stocks just going down down down sometimes you're going to have you know a kangaroo market which is essentially a market that's you know it's not really going anywhere and it's just jumping up and down i want to be in the type of stocks and the type of corporations that are going to make tons of money regardless over the next five years and the type of corporations that i feel are very undervalued at their current prices that's a mentality i use and everything else is just a distraction to me everything else is just a distraction as i keep that away i'm making business decisions i'm making investments in corporations okay you know other people if they want to try to trade in and out of stocks and get in and out of them every day do whatever you want to do that's not my that's not my strategy that's not my mentality i'm doing my thing over here okay so that's my mentality now how do you actually research these stocks okay well first the stocks have to come to you you have to you know maybe you looked you were in the grocery store and you found some product you're like hmm this product sells well i love this product or i see everybody buying this let me look okay with this company you look at the back of the product okay this company you know makes this product let me go ahead on my phone everybody's got a phone in their pocket right let me google and see if this is a public company sometimes it's going to be a public company sometimes it's not okay and so you can go ahead and you can start researching from there now in terms of if you're trying to get more stock ideas okay like you can watch networks like cnbc bloomberg and things like that they have ticker symbols that go like on the bar and you can just like like look at it and be like oh there's that ticker let me just type that in on my stock tracker app or yeah finance or whatever and see like what that is okay uh maybe you hear somebody talk about it you can read articles seeking alpha places like that you know those are definitely places that you can check out seeking alpha's a place where people just write articles about stocks all the time i can tell you stock hub it's my free discord chat i made like all people do in there every single day is talk about stocks in different stocks and why they think this stock is good and this stock's bad and things like that like i mean i don't i don't know how many ticker symbols are mentioned in a given day in stock hub during the the trading hours it's probably in the hundreds if not in the thousands okay so i mean the amount of of action you can get from just joining somewhere like that's phenomenal i'm getting honestly and then i have my private discord chat which like is available in my private group i get at least 50 plus if not 75 plus of my stock picks nowadays from actually inside my own private groups discord chat because some you know everybody's like you know basically has my same mentality so now i have thousands of people that are in this group that have my same mentality and are basically sifting through stocks all the time and like you know some stocks are looking to do i'm like ah that's not a good one sometimes i look into and it's like this is amazing so stocks can come to you from a million different places there's no shortage you can literally go on google and type in s p 500 stocks and look at a list of the s p 500 or wrestle 2000 stocks and like look at all the stocks in the russell 2000 there's no shortage of stock ideas out there now once you have the stocks that you want to look into then you go to their investor relations page so if you wanted to look into tesla stock type in go into google type in tesla investor relations first thing that's going to pop up is going to be tesla investor relations page you can click on that and in that investor relations page is almost all the information you could ever ask for on a corporation okay you can go to their documents you can go to their basically the latest press releases everything like that okay so once you're on the investor relations where i like to start is a 10k annual report if this is a new company i'm looking into that i've never looked into before okay that report is going to give you such a great rundown of everything that that company's done over the past few years why this has happened legal things that are going on like the business strategy everything it's amazing okay it is absolutely amazing so before you actually look at the 10-q which is the latest like the essentially the last three months of the business look at the last year of the business then you can worry about the 10q after that but the annual report it is the best thing you'll ever if you're thinking seriously about investing a stock this is what i would say over everything else everything else after that is secondary okay from there i might look in the 10-q or i'll go ahead and listen to the latest conference call basically almost all public companies have conference calls every three months okay and that's too basically analysts can ask them questions about the latest quarter and usually the ceo and cfo are on there and they're talking about the numbers and why they had revenue go up or down or profit go up or down how the business is looking and things like that you get so much great intel in those conference calls that can help you make an investment decision and sometimes you can even go to conference calls in the past okay no with conference calls these are these are usually 30 minutes to an hour depending on the company okay what i suggest you do when it comes to conference calls okay is do it like late at night or something when there's no distractions and don't multitask we're in we're in this like whole world nowadays where everybody wants to try to multitask everything and everybody wants to be doing two three four things at a time okay no no don't do that when it comes to conference calls okay you focus in on that like it's the only thing you're focusing in on don't worry about who's texting you don't worry about social media don't worry about watching netflix and trying to listen at conference calls simultaneously i'm telling you when you're listening to a conference call you just fully engage in that and you just focus on that okay as far as you know the annual reports 10ks i always hear from you know beginners in the stock market they say things like oh man it's a big report it's a lot to read man over time you're going to get so fast at reading that when i first started investing in stock market a 10k an annual report it took me sometimes a day two days to go through it sometimes three days to really go through it right and i could tell you nowadays i can go through one of those and retain the information in like two hours and i'm good to go so you just get faster you get better at reading those sorts of things you get you learn what to kind of look for and what not to look for over time and you'll go through it so much faster and yeah the conference calls lock in man everything else don't worry about it at that particular time you're locked in okay latest investor presentations so corporations a lot of times will do like investor presentations you can go ahead and you can look at those investor presentations those will give you a ton more information about the company with their strategy where they're going a lot of times these companies will do basically big ones with like goldman sachs or jp morgan or bank of america or some of these other ones and they'll give out a ton of information about their company and sometimes information that you never had clue about even if you've read the 10k even if you listen to latest conference calls sometimes they're going to divulge information in those investor presentations or those analyst days or whatever that you had no clue about and you know whenever you can get information in the stock market that not everybody knows it's always a good thing right you want to do it legally and this is a way you can legally do it but sometimes i'm telling you sometimes these executives slip up and they give you some information that you know other people just don't know about because they're not doing the work as with most things in life the more work you put in the better your results are going to be over time and everything's cumulative in this game right everything's cumulative so if you if you're putting in a lot of work over the years and you continue to you're going to get better and better and better at these things okay so something really really big it's just the name of the game okay so definitely those are huge from there google news about that company try to find you know what's been in the the news lately for that company what's been going on with them any recent lawsuits or legal things going on or any exciting developments that other people might not know about so google news it okay from there i'll go ahead and i'll look at like what are other people talking about this stock so if i'm looking into some stock i might go on youtube and like type that stock you know directly into youtube and see if other people have made videos about it and just see if there's anything i'm missing or any other perspectives to look at i never make an investment decision go back to my mentality i never make an investment decision because somebody else is if somebody else is buying that stock i don't just go say i'm going to buy this stock because they've had success or something like that i don't ever make that or somebody says this is a bad stock i don't just say oh they said that's a bad stock so i can't buy i never make a decision based upon another person's opinion however i am always willing to respect people and willing to listen to them listen to them and just hear what they have to say and then in my head i can say that's a bunch of crap or they got a good point there it's going to be probably one of those two or maybe it's something in between right and so i'm always willing to listen to other people's you know two cents uh also when you google news you're going to find people have written articles about these stocks and sometimes you're going to find different perspectives to look at things okay so yeah that's big from there i'll do basically field research depending on the company and if i can actually do field research sometimes with like internet based companies you can't sometimes do field research but there are a lot of companies you can i'll do what's called channel checks which a channel check is essentially looking at like how a business is doing like are they busy are they not busy are the products selling well things like that so you know just some examples of companies you know over the past year or two that i've done channel checks and there's a lot more in this you know i was invested in this company named national beverage corporation they made the lacroix product and basically right after you know the roney rona had started everybody was buying water left and right and so i was thinking about like water plays i was thinking about well i could buy into coca-cola they owned dasani but i was like ah you know that's not a big enough mover for their business and i was thinking about agua athena which is owned by pepsi but that wasn't a big big enough mover either and then i remember national beverage corporation owned sparkling water beverage and i was like oh my gosh that sell through's probably gone up and that stock happened to be a beaten down stock at that time it was like 30 something dollars a share like 38 dollars 37 something like that and so i would go to stores and sure enough national beverage you know lil lacroix products were out everywhere or like very sold through because people were just buying anything in relation stocking up on these things and i'm like oh my gosh this is a perfect scenario for stock guess what that stock i invested in that stock quite a bit of money and i made it was one of my biggest winners of 2020 overall and that stock over doubled up in a matter of like six months it was a beautiful beautiful thing and those channel checks helped big time and actually in my private discord chat i ended up actually opening a tab back then it was essentially every time people in the group which there's thousands of people in there would go to like a grocery store or something they would snap pictures of the shelves of their store so all of a sudden i was getting information from literally all over the world like on a scale like artificial intelligence type stuff it was beautiful okay absolutely beautiful elf on a shelf this was a cosmetics company i was invested in i'm still investing that company it's been a double up triple up type company where i've just made incredible money and do channel checks i'd go target stores in in all 10 different stores and see like what's to sell through the for their products and when i was investing that when i saw sell through was really strong win in 2021 this is an investment of mine invested you know six figures oh i'm not in vegas i pointed at this like i'm in vegas i usually have a picture of vegas at my vegas house but when i invested over six figures in this stock when resorts i'm going to be going to their properties plenty when i'm out in vegas in 2021 and trying to see like how business is or you know as people start to you know get the roney rona shots essentially are does wind start to come back does las vegas start to come back and i'll be going down there and seeing like what is the gaming action how are things during the week how are things in the weekend is the business slowly starting to come back and those sorts of things okay channel checks the tattooed chef ttcf one of my newest investments so bullish on that company i do channel checks alms every single week i'll go to sam's club or different stores target walmart where their products are sold at and i'm trying to see like how the sell-through is are the products on the shelf are they getting you know are people buying them and things like that so you know that is how you research you know it's it's a lot of this is the work that comes with stock market investing okay there is work if you want to make a lot of money in the stock market over time it's out there to be made but you got to put in the work and like i said with most things in life the more work you put in the more success you're gonna have the luck you're gonna get there's a great saying like the more work you put in the luckier you get okay something to be said there all right now let's talk about how to value value stock so value stock first off is a company that is expected to have revenues grow five percent or less per year all right these are traditionally known as value stocks but they're not stocks that are necessarily they're going away tomorrow or something like that or they're like going to go bankrupt no that's not value stock is like that consistent growing company that's going to grow revenues one percent two percent three percent four percent maybe five percent a year that's a value stock because they're not a gross stock growth stocks are like growing revenues 10 plus okay so that's a value stock you're looking for pes price to earnings ratios under 25 is ideal for value stocks if it's over 25 and it's a value stock you're probably not getting a very good deal i'll be honest okay so you're looking for ps under 25. if you can get p a p e under 20 that's really really good okay for a value stock now you also want to see a forward p lower than a current p yeah with finance you can go to statistics tab and see what analysts have you can also start if you understand the company well enough you can start formulating your own opinion on what you think the company will have for profitability net income over the next year you can start figuring out if that forward p is in the right place or not and so you want to see a 4p lower than the current p the reason being is that means a company will be more profitable in the upcoming year than the past year super super important you want a company that's consistently increasing profits if you're investing into a value company so you know growth companies it's like profitability can kind of be pushed back value stocks profitability is everything net income going up over time is everything okay now you also want to if you're looking at value stocks you want to make sure they have plenty of cash around and you know ideally more cash and debt now that's not always going to be happening because essentially we're in this time period where debt you can take out debt for such low interest rates it's unbelievable so a lot of companies are taking out debt so it's hard to find companies right now that have more cash on their balance sheet than debt but that's ideal but the other day you want to find if you're looking into value stocks you want the type of companies that plenty of cash around you know 500 million cash a billion cash 2 billion cash something like that that's going to get those companies through a bad time or a 100 year health event or things like that okay so you want plenty of cash you're going to find that on the balance sheet okay the balance sheet very very important and really looking at the cash short-term investments long-term investments versus short-term debt long-term debt okay keep that in mind and uh capital lease is not as important capital leases are sometimes counted and in long-term debt now this is kind of going a little more complicated for you guys than a stock market for beginners and i'm sorry for going off on a more of a complicated subject here but essentially capital leases are starting to count that in long-term debt you always want to kind of break that out and a lot of times companies will on their balance sheet you can see what's capital leases and what is true long-term debt i don't like the move they made when they put capital leases because now if you have an office that has a 30-year lease that counts as like long-term debt i don't think it was a right way of doing things but i don't make up the accounting standards and now all companies have to abide by it so it is what it is okay and if i lost you there because that was confusing i apologize okay if any sophisticated people are out there i hope you enjoyed that part right there okay all right now uh income you want to see improving revenues over the past three years the past three years over the past 10 years 20 years who cares the past three years you'll want to see did revenue improve over the last three years you also want to see improving net income which is bottom line revenue you're going to hear talked about is top line net income you're going to hear talked about as bottom line okay you want to see improving net income over the past three years remember when it comes to value stocks the net income improving over time is actually more important than the revenues improving over time when we talk about growth stocks it's it's inverse essentially with growth stocks it's all about growing the top line the revenue more and more over time and everybody takes a back seat to net income complete inverse with value stocks it's all about did they grow that net income at a much faster rate than anything else out there okay you want to see improving over the past three years you want to see a proven management team you know if you're investing in these type of companies value stocks you have to have a proven management team there grow socks you know you can take a little bit of a risk and maybe they don't have a lot of experience or something like that but with these companies you know because the upsides limited you want a proven management team there that knows how to do it okay and dividend yield ideally two percent more or more is ideal if you can get into a stock like that because that means essentially if you're investing that stock you're getting way more than you can get in a savings account because in 2021 you know it's almost impossible to find savings accounts that are paying a two percent plus uh for your on your money almost all of them are paying one one percent or less than one percent now okay so dividend yield over two percent ideal uh the higher the dividend yield more more and more attractive likely value investors are going to be to that particular stock and those people are looking for dividend cash flows out there okay so that is the base fundamentals on how you value a value stock we could go more you know in depth there but that's that's you know your base fundamentals on what's really really important when you're looking at a value stock okay let's talk about taxes for a moment all right so obviously the tax man wants a cut of everything all the time right if you make money any way possible the tax man wants a piece of it right so first off you know international folks if you're watching this and you live in europe or you live in i don't know latin america or you know wherever and you're watching this tax rates could be different where you live okay i'm i'm i live in the united states obviously and i'm speaking to you know u.s people when i kind of talk about these different tax rates and things like that it could be similar if you live internationally or maybe it's not okay but when it comes to taxes long-term gains in dividends are basically counted as capital gains okay capital gains and you pay different tax brackets for that if you make under a hundred thousand dollars a year high probability you'll be paying around a fifteen percent if you take any capital gains basically any gains you took on stocks that were held for over a year or dividends received if you make you know half a million a year a million dollars a year something like that you're going to pay 20 long term capital gains on you know those long-term gains any stocks you held for over a year you sold it after you held it for over a year or dividends received okay now let's say you take a short-term gain so let's say you buy into uh i don't know tesla stock you buy into tesla stock tomorrow and let's say tesla's 730 a share okay and let's say tesla stock goes to 750 a share tomorrow and you made 20 on that stock and you're like i'm i just want to cash out i want to take my 20 profit and i'm gonna go eat uh a steak tonight out of the restaurant or something like that okay you know cool for you so you went ahead and took that profit now you have to pay normal tax rate on your money essentially okay and so you know it depends on what tax rate you're at but a lot of folks are above a 20 tax rate a lot of folks are at 22 23 25 30 tax rate and so if you're taking those short term gains you're just going to have to pay a lot more money it's going to be counted as ordinary income and that's not obviously an ideal situation so this is another advantage of why it makes sense to be a long-term investor in companies and hold these stocks for a year or longer because you're just taxed far less and you receive that dividend money your tax far less than if you take a short-term gain on a stock now with that being said i try to never make a decision an investment decision just solely based upon taxes i'm trying to make a business decision that is the best place for my money over time so you know when it comes to taxes i look at it but it's not the most important factor all right now you can write off wins versus losses okay so you know there's going to be times when you have to sell stock for loss you just got into bad stock things didn't work out and you lost money on it it's going to be other times hopefully there's a lot more times where you made a lot of money on a stock right and so let's say you have you bought xyz stock and you made a ten thousand dollar profit on that stock and so you sell out of that stock boom you cashed your ten thousand dollars profit good for you awesome but let's say you invested in a bad stock let's say zyx corporation and you lost three thousand dollars on that stock okay you basically rate those off against each other and now you only have to pay taxes on the seven thousand dollars okay which is very important now where it gets tricky is if one's a short-term loss and one's a long-term gain that's where things get a little little hairy basically if it's a short-term gain against a short-term loss you can write that off it's the long-term gain and it's a long-term loss you can write that off if it's you know long versus short things like that it gets really really confusing okay and it gets to be a messy situation all right now also keep in mind you don't have to pay any taxes until you sell the stock okay so if you have a hundred thousand dollars in profit you've made on a stock in basically an unrealized gain you don't have to pay taxes on that yet you will have to pay taxes if you ever do sell that stock though okay so something to keep in mind eventually one day you will have to pay taxes on that but there are no taxes until you sell a stock okay so this wraps up the moderate section of the stock market for beginners video and next on the stocks for beginners video we're going to talk about a little more complicated stuff okay we're going to talk about portfolio diversification we're going to talk about how to invest based upon different age ranges okay we're going to talk about options we're going to talk about leverage margin you're going to hear some of those terms talk about we'll talk about that okay we're going to talk about valuing of growth stocks very complicated subject okay and i'll give you some examples of what i feel are good beginner stocks uh for folks that are just kind of getting in the market and they're they're somewhat new so hope you enjoy that already folks i hope you're getting a ton of value out of this video so far so now we're going to get into a little more complicated subject okay and a few of them needless to say all right now obviously this is a stock market for beginners video but you know some of these are a little more complicated especially around like options leverage we'll talk a little bit about that uh valuing grow stocks extremely complicated subject to kind of you know give you examples of some beginner stocks i feel like are good for newer investors the market and things like that okay so first off we're going to talk about age you know a lot of different people are going to see this video from a lot of different age brackets some people are going to be 18 years old and watching this some people are going to be in their 30s some people are going to be in their 50s 60s not everybody gets in the stock market like you know super young like i did when i was like 18 19 getting into this game like some people you know wait a while you know maybe they weren't focused on it maybe it just wasn't even in their radar and that's just like the way life is sometimes sometimes you know things aren't on your radar and also when something sparks an idea and also you like i'm going to go look at this thing over here okay so investing based upon age so your 20s and your 30s let me be very clear before we get into this okay in your first year of investing you should really be trying to take a very disciplined approach and uh the least risky approach you possibly can your first year of investing and the reason that's really really important is you want to get your confidence behind behind yourself you don't want to get tore up in the market the worst thing that can happen to you in the stock market is you start investing into the stock market okay and you get absolutely destroyed because maybe you were messing around with very speculative companies super high growth companies with super high valuations and you just get destroyed because a lot of times that will ruin your confidence it will ruin your view of the stock market and you'll look at the stock market as like this is just a big uh thing that just takes my money and it's just a waste i invested 10 000 into these stocks and now i have five thousand dollars left you don't want to start like that that's not an ideal situation okay so you the first year you want to take as little risk as possible and really just kind of getting your feet wet like you know kind of like you know dipping your toe in a pool or something like that okay now after that first year 20s and 30s is really your time period where you can take the most risk okay now when i say the most risk that doesn't mean let's be crazy and let's just you know gamble our money around and who cares we're young let's just throw our money at everything no okay you still want to be disciplined you still want to have the right approach and those sorts of things so you don't just throw your money out there but with that being said you can definitely invest in a lot more growth stocks companies that are growing very rapidly than let's say value stocks like this is your time to really make a lot of money in the stock market or try to at least okay like i said doesn't mean you go crazy and you do the all the riskiest things in the world okay you want to still be because at the end of the day you want to have built up to some very nice numbers over that time period in your 20s and 30s and as long as you're staying disciplined and you're investing into a lot of great growth companies good thing you know high probability is a lot of those growth companies hit big and you your net worth you know in your 20s and 30s climb to you know hopefully hundreds of thousands of dollars or millions of dollars that is the goal because if you're putting yourself in a situation where you're you're entering your 40s let's say and you already have six figures invest in the stock market or let's dare even say seven figures now you're in a really really good position i mean not just a really good position you're in a great position for the rest of your life now your life just got a lot easier financially forever okay now 40s and 50s this is kind of like you know what people call the mid-lifetime okay and you want to kind of take moderate risk this you know just because you're in your 40s and 50s doesn't mean you can't take any risk remember like people are living longer than ever like i'm i fully believe like a hundred years old is going to be like the norm at some point in time when i look at what's happening with genomics and artificial intelligence and all these sorts of things and you know i i truly believe that over the next 50 60 years there's going to be so much progress that i think the average age expectancy will be 100 let's say in the future okay so the 40s and 50s you know some people when they're super young they look at 40s and 50s like oh that's like old no okay that's like you're like mid life essentially okay so at that point you can still invest in growth stocks you can have half your portfolio and grow stocks and maybe the other half of your portfolio in value stocks now everybody has different risk appetites so maybe you don't want to take as much risk so maybe you're 48 years old and you want to be let's say only in 10 gross stocks in 90 value stocks respect everybody's got different growth appetites out there but i'd still look at this as a a moderate risk stage i don't think this is a stage to say i'm packing it in i don't want to take any more risk because i'm you know i'm 50 years old now i'm like you know life is like life is pretty long and it's going to get longer in the future so i think it's a it's a wise decision to kind of look at this and be like uh let me still let me still uh you know grow my money let's not just call it a day okay 60s and 70s i think this is a time when you start moving to more low risk 60s and 70s and when i say low risk you start moving to index funds index funds is just your money essentially distributed out in s p 500 and however much the s p 500 goes up or down in the given years likely how much your money is going to go up or down in a given year okay there's a very you know there's still a level of risk there because the s p 500 goes down you know you can lose money but at the same time like where's sp 500 going most years up almost you know for every you know one year s p 500 goes down there's eight or nine years that the s p 500 goes up okay so that's kind of the age where i say okay now let's start dialing it back a bit and let's take you know a lower risk approach with index funds 80s that's you know if you make it to your 80s that's when i say no risk you know get out of stocks that's the kind of you know savings account see the accounts don't even worry about this anymore so that's kind of my view on investing in age over time is like you take you know you're more risk and then over time as you get older you slowly take less and less and less risk over time okay but uh yeah you know this is a stage that i think is funny because i like some people i just i found like they think that's the time to pack it in it's like no no it's not okay you still need to be you know growing your money and focus on growing your money when you're in your 40s and 50s okay let's talk about portfolio diversification for a minute all right so a lot of people always ask me like how many stocks they should be holding and i tell them well a lot of it depends upon how much money do you have in the market okay so if you have 10 you know under 10 000 in the market you should be holding five stocks or less in my opinion once again this goes back to your risk appetite maybe you can't sleep well unless you have 10 stocks or 15 stocks if that's the situation do whatever you want to do my strategy is if you're holding less than ten thousand dollars worth of stocks hold five stocks or less okay three to four stocks ideal you want to have your money in a couple stocks you get some experience in some different stocks buying you know if a stock dips which is something i didn't really touch on much but you know buying on the dip when the market you know is in a big correction or a full-on you know let's say the stock market just goes down a ton usually a time when you want to buy stocks very important okay i never think i don't think i mentioned that but you know keep that in mind what i just told you there okay ten thousand fifty thousand dollars four to six stocks is about right in those ranges 50k to 100k this is when you start to feel like you're really starting to build some wealth in the stock market when you start hitting these like like levels now you get six to eight stocks okay and so you're slowly adding more stocks as you're getting more and more money in the market 100 000 plus okay this is a big milestone i actually you know in my private group every single time somebody hits a hundred thousand dollars plus i actually send them a trophy we only do that for for two brackets when somebody hits a hundred thousand dollars and when somebody hits a million dollars in stocks i always do that i always send them like an award it's a pretty sick award by the way maybe i'll show you a picture of it somewhere here the six figure club and then the seven figure club award and that's that's like that's when you feel like you're starting to make it in the stock market when you start hitting six figures plus that's when you truly start feeling like hey man i'm making it like i'm actually doing this man i know that that was a big feeling for me when i first saw my accountant it had six numbers i was like okay awesome stuff so 8-12 stocks is kind of where you want to be when you have a hundred thousand five hundred thousand dollars all right a half a million dollars to a million dollars 12 to 15 stocks once again depends on your risk appetite this is my philosophy this is my strategy okay and then if you're over a million dollars 15 to 20 stocks is about right you got two million dollars in the market five million dollars in the market eight million dollars in market 10 million dollars in market we just had somebody in the private group recently hit uh over 10 million dollars now in stocks is absolutely insane so that's you know i can definitely understand getting a place where you've got 17 stocks 18 stocks so you've probably been building it for a while and uh you know that's a lot of money to have in the market and you want to make sure you're you're staying somewhat diversified okay now that's portfolio diversification let's talk about options and leverage you're going to hear things like this talked about in the market okay now none of this should pertain to people that are in the stock market i'm basically you know that are new to the stock market i'm only telling you guys this just so you know what these things are when you hear about these things okay basically options are essentially people placing bets that stocks are going to go up to certain prices by certain dates or down to certain prices by certain dates or it could be people basically you know writing different option contracts because they believe a stock's going to not move much it's not going to have much volatility and they're going to be able to get premium from that there's many different strategies around options but a lot of times if you hear people you know doing something in relation to options what most people are doing the average retail investors let's call it that okay they're usually buying call options or they're buying put options okay buying a call option is essentially you're betting that a stock price is going to go up to a certain price by a certain date and if you're buying a put option you believe a stock's going to go down to a certain price by a certain date once again you know beginners in the stock market don't really have any place near options i'll just leave it there okay leverage debt investing also something beginners in the stock market don't have any place really messing around with but you're going to hear about it hey i'm leveraging money hey i got margin things like that okay it's essentially you're investing on debt so you know you can actually set up a margin account with like a brokerage and you know invest an extra dollar for every dollar you have in the market so the thing you gotta understand about leverage margin debt investing things like that it has risk it has risk okay because yes you could push up your gains real quick let's say you have ten thousand dollars in the market and then you take out another ten thousand dollar margin loan to invest another ten thousand okay okay so now you have twenty thousand dollars in the market so if you're doing great in the market your gains are going to get way pushed up good for you on the flip side you get absolutely decimated if the stocks start going bad and your stocks start doing bad uh you can actually be forced to sell your stocks or deposit more money in your accounts your brokerage can call that money in they have the right to do that whenever okay and so that can lead you to a really ugly situation so you definitely you know if you're a beginner in the stock market you really shouldn't even be you know worrying about trying to make like i've been in the market for like 100 years right well not 100 years but i've been in the market for a while i rarely do option moves rarely i rarely do anything margin related very rare okay this is the type of stuff is it's going to take you to higher risk levels and you got to really be careful of that especially when you're newer to the stock market okay even if you're experienced but especially when you're a beginner in the stock market right all right guys so let's talk about some examples of some beginner stocks out there so good beginner stocks are usually big tech okay companies like you know apple google facebook you know amazon microsoft those sorts of companies are usually you know the ones i think about first and foremost because everybody pretty much knows those companies like you know you don't even have to have a super high level understanding of any of those companies i just list off to you but good thing you know you know high probability 95 plus of people that are watching this video you know each one of those companies i just list it off to you right there and you have somewhat of an understanding of like how their business works before you even start like doing the research work right so those are usually kind of the best stocks i think about to start with for beginners okay you kind of pick one or two of your favorite ones and invest in those okay then i think it's it's smart to find one grill stock as a beginner in the market one grow stock invest in it okay one in and outside of the big tech let's put it that way outside of big tech one grow stock that you really like find one value stock you really like and maybe find one dividend stock or you know if you've got a smaller amount of money in the market just worry about one of these essentially so maybe you buy two of the big techs one growth stock that's not in the big tech and one value stock or something like that and the reason you want to do that is you want to get some experience in in adding some stocks that are outside of like the big tech companies or something like that and those are that's kind of like the perfect strategy in my personal opinion if you're getting you're brand new the stock market and you're trying to you know get your feet wet and those sorts of things because you don't want to move you know too fast if you move too fast you can get hurt pretty bad okay we've had two really good years in the market 2020 was a great year for the nasdaq we had a great year in 2019 for the nasdaq you know 2021 we don't know how it's going to be for the nasdaq okay and so you don't want to take you know too too crazy a risk out there make sure you're staying disciplined all right now value and growth stocks so i put out an hour long video that goes super in depth on this i'll probably show you the thumbnail here something like i think i called it like uh how i find my next million dollar stock high growth investing tutorial or something like that i called it put out that video a few months ago you know like i'm showing you there watch that video if you want to learn a lot more about growth investing in growth stocks because that video goes super in depth on it okay to kind of just tell you a little bit here okay tam is a total addressable market extremely important when looking at a growth stock you want to know what their true opportunity is this company's going after okay now what percentage of that total addressable market does this company have a decent probability of getting this is extremely important so if they're going after a tam of a hundred billion dollars what is the probability that this company will get a five percent chunk of that so five billion dollars or ten percent so ten billion dollars or something like that very very important now how do you understand that the research work we went over in the moderate section exactly all that research work and experience the research work and the experience you've been in the market doing business for a while you're going to be able to judge these sorts of things a lot better okay what my most successful investment ever in my life was tesla stock i started buying you know a couple years ago and when i looked at that stock i said okay all vehicles in the future in my opinion in 10 years or so will be electric vehicles and if that's true or that's close to being true and what's the chances tesla's going to grab this percentage of market share and i was able to start they were doing numbers and i realized oh my gosh this company's significantly undervalued it ended up being my best stock i've ever had in the stock market in terms of stock market gains like made like i think 1 500 or something like that in a matter of like a couple years it's been amazing and so i only got to that place from experience and the fact that i did ridiculous amounts of research into that company i looked at the probabilities i looked at what they were doing and things like that okay so that's really important you want to look at the current market capitalization for a company you want to look at that current market cap extremely important you know why because then you're going to try to look at what the five year out net income will be for that company and these aren't like numbers that are just out there that you're just like oh let me look at what five year out net income is for this company you have to do those numbers and the only way you can do those numbers and formulate those numbers is by doing ridiculous amounts of research work into company but i can tell you when it comes to growth stocks if you do the research work right and you pick the right stock the gains are so worth the work okay i've seen it time and time again i've seen it with stocks like tesla i've seen it with stocks like netflix stocks like amazon stocks like apple stocks like shopify stocks like amd stocks like nvidia company after company i've seen it with where people that actually put in the real world research work whether it was me or there was somebody else out there they put in the real research work and they made more money from those stocks than they ever could have dreamed of okay so believe me the research work is worth it i hope you guys enjoyed this video as always this was the stock market for beginners video 2021 if you haven't already hit that thumbs up button if you don't mind please that's all i ask in return for this video uh this was a ridiculous amount of value i gave out in this video and also if you want to join stock hub i might have that as like the ping comment down there it's absolutely free to join in there you can talk stocks with you know literally you know tens of thousands of members from all over the world in there if you want to try to apply for my private stock group and you know basically get in there you can also you know apply for that that will be as uh maybe like the second pin comment down there if you want to put in an application to try to join in there thank you for watching and have a great day

Channel: Financial Education

Views: 222,667

Rating: 4.9739351 out of 5

Keywords: stock market for beginners, stocks for beginners, stock market for beginners 2021, stocks for beginners 2021, stock market, stocks, how to invest, stocks to buy, stocks to watch, stock market 2021, stocks 2021, how to invest in stock market for beginners, stock market investing for beginners, stock market tips for beginners, invest in stocks, stock, financial education, jeremy lefebvre, how to buy stocks, stock market for beginners 2022, stocks for beginners 2022

Id: SEgKTSZEkVI

Length: 61min 25sec (3685 seconds)

Published: Tue Jan 05 2021