How to invest $1000 in the stock market? This video shows you how to invest in the stock market in just 5 steps.

Step number 1 in stock market investing is to do a reality check. Ask yourself at least the following questions:
Did I pay down debt?
Did I pay my kids’ (or my own) school tuition?
Can I afford to lose some (or all) of this $1000?
If you answered yes to each of these questions, then you could consider investing in the stock market.

Step 2 is to decide what to invest in. When you #invest $1000, then making one purchase (with the full $1000), or two purchases (of $500 each) is probably a sensible thing to do. If you go for two times $500, you could consider going for one somewhat embryonic company (in a sector like biotech or software) and one more mature and established company. For embryonic companies, you could look through a list of IPO’s (Initial Public Offerings, companies that have recently entered or are about to enter the stock market) and review whether their business case makes sense and appeals to you. For more mature and established companies, some of the 30 companies in the Dow Jones Industrial Average could be a good starting point. Which names do you recognize? Do you understand the business they are in? How are they making money? What is their vision, mission, and strategy? How are they doing financially? Those are good questions to ask yourself before investing in a stock.

Step 3 is to open an online broker account. Type the search term “online broker account” into a search engine, select a recent search result that compares online brokers in your country, and review their analysis. There might be a promotional bonus when opening an account. Once you open your account, transfer your $1000 into it, and purchase the one or two stocks you selected.

Step 4 is to learn to understand what is happening with the companies you invested in. Read their annual report, understand their financial statements. There are a good number of free tutorials available online to help you learn the language of finance.

Step 5 in stock market investing is: sit back and enjoy the ride! Stocks go up, and stocks go down. Some stocks take off, some stocks crash.

Philip de Vroe (The Finance Storyteller) aims to make strategy, #finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!