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I first started investing when I was 18. Okay, that's kind of a lie. I first tried to invest in the stock market around that age.
I put together an account with Chase, ordered a single share, and then realized I was about as adept at investing as a goldfish is at climbing trees. It was overwhelming, to say the least. There were charts that didn't make sense, fees that just destroyed any profit I'd make, and more.
I was ready to give up, but then, research saved my butt and made my stuff profitable once more. After I overcame all the struggles I had, I realized that these were issues every new investor faces when they first start putting together a stock portfolio.
If you're new and feeling stuck in the stock market, don't worry. We've all been there. Here's how you can overcome some of the biggest issues you might have.
You legit don't know what you're doing and nothing seems to improve that.
Unless you were borne from a long line of Wall Street professionals, it's safe to say this is one of the most common struggles every new investor faces. And you know what? It's scary!
Knowledge is power, and when you don't know what you're doing, you're pretty powerless. You can't just invest willy-nilly, either. Thankfully, it's really easy to solve this struggle.
You can either use one of the best robo-advisor apps to do your investing for you, or, if you want to be more hands-on, you can try an investing course from Udemy.
We suggest the Udemy course simply because it gives you a better foundation for investing, and because it's often more empowering to take your investing into your own hands.
You're panicking about losing money.
Panicking is one of the easiest ways to lose money on the stock market, because that emotion typically will goad you into selling at a loss out of fear of the stock plunging even lower. It's also a common reason why people avoid investing, which only really hurts you for the most part.
Unfortunately, this is one of the struggles every new investor faces that can't be solved with a quick fix. The only way you can really get used to that fear is to jump right in or maybe try to quell your anxiety with a remedy.
I personally found that using a zen garden helps me silence that fear pretty well. Maybe it'll work for you too!
You're low on funds.
Everyone, and I mean everyone, should be investing. However, if you're like most younger Millennials, chances are that you're also really broke, and may have a hard time making the money you need in order to invest traditionally.
Trust me, I've been there. I get it. It's one of the more embarrassing struggles that every new investor faces when they are working a typical day job.
Thankfully, apps for micro-investing like Stash and Acorns allow you to invest in the stock market for as little as $5. If you are looking for traditional ways to invest $100, you also can find some pretty good options in bonds or CDs.
You don't have friends who invest and it feels weird.
If you live in a low-income neighborhood, then chances are that you are going to feel like an "odd man out" when it comes to your investing habits. Believe it or not, this actually tops the social struggles every new investor faces when they come from a background that doesn't talk money.
It's rough! Thankfully, you can actually use the power of the internet to reach out to others who have an interest in investing. Just, you know, avoid people who ask you to invest in their sketchy businesses.
You feel like you "missed the boat."
If only you invested in Bitcoin before December 2017! If only you invested in Apple back when it was worth pennies! Sound familiar? There isn't an investor alive who hasn't gotten a case of the "If Only" disease at least once.
Overcoming your investing fear of missing out, or if you're a Bitcoin fan, overcoming your crypto FOMO, can be rough. The best way to do it is to realize we can't chase after every opportunity we see. It's just not possible!
You want to invest in expensive stocks, but don't have the money to do so.
Back in the day, this used to be one of the struggles every new investor faced that just couldn't be solved. It's 2018, though, and that means times have changed.
Many apps for micro-investing, including ones like Stockpile, allow you to buy up fractional shares if you can't afford a single issue of stock. For people who want to invest in Google or any of the other expensive stocks on the market, these apps are a godsend.
You want to have an investing coach, but you don't know where to turn to.
You are absolutely, positively, not alone if you're interested in having an investing coach help you choose portfolios for your work. One of the struggles every new investor faces is trying to find decent investing advice to follow.
It's common knowledge that being new to investing tends to attract unsavory con artists to you. Because of this, it can be hard to figure out who to trust with your investing advice.
The fix for this is actually pretty easy. You can either take an investing course, or, if you just feel like reading, you can pick up a book that features advice from a famous personal finance guru like Dave Ramsey.
You feel like you can't invest until you're debt-free.
A common myth about investing that you may even believe is that you shouldn't invest until you're debt-free. If this was the case, no one would retire because most households are, in fact, filled to the brim with debt!
Here's the fix: You're going to need to determine whether you should invest or pay down debt. If debt's killing you due to a high interest rate, focus entirely on debt or declare bankruptcy. If debt isn't wrecking your life, invest what you can afford.
You honestly have no idea what you want to invest in.
Stocks, bonds, and mutual funds, oh my! With all the ways you can invest, it's often pretty hard to figure out which investment you should make. Even picking out a stock can be tough.
This is true when it comes to the ways you can invest $100 on the stock market all the way down to the different types of alternative investments you can make.
Does this sound familiar? Well, I have some good news and some bad news. The good news is that this is one of the best struggles every new investor faces at least once. The bad news is that the best way to figure out what is the right choice for you is through research.
The stock market got volatile and crashed, leaving you with major losses.
Finally, let's talk about one of the most terrifying struggles every new investor faces at least once during their time playing the market. The stock market—and really, the economy in general—will always have moments where it crashes or corrects itself.
Bear markets are usually the years where you'll see newbie investors call it quits after feeling burned by the reduction in stock value. It's only natural to feel that way, and to want to avoid investing because of that.
The problem is, investing isn't a place where you should let emotion guide you. The best fix you can have when you want to rage-quit the stock market is to take a deep breath and invest like Warren Buffett does. He's a long term investor, and doesn't take today's crash to mean doom and gloom.
Warren Buffett never quit investing just because of a market crash, and he's seen quite a few. Rather, when he's feeling nervous about market performance, he sticks to quality companies with a proven track record to ride things out.