5 Things Millennials Need To Know Before Investing In The Stock Market

5 Things Millennials Need To Know Before Investing In The Stock Market

Here are some of the most important things for Millennials to know before they invest in stocks.

1. Choose the right brokerage service.

Before the era of internet, people needed to open an account with a brokerage and find brokers to invest in the stock market; however, people can invest thorough online brokerage services nowadays. There are hundreds of online brokerages out there and they all have different advantages and disadvantages. For example, “A” brokerage may not charge any transaction fees but will charge a monthly service fee, and “B” brokerage could charge you with a 5 dollars transaction fee every time you open or close a position. Therefore, it is important for the young investors to choose the right brokerage service that suits their investing habits.

2. Do not invest all your money into one single stock

It is very risky to invest all the money you have into one single stock. Stock itself is risky and unstable, even Warren Buffet can not predict the future of a stock. By investing all your money into a single stock, you could lose all your money very quickly, but you could also gain huge benefits of the stock soars.

3. Pay your taxes

Young investors often forget that they need to pay taxes for capital gains. The taxes are usually 15 percent of your gains; however, you can claim your losses if your losses are more than your earnings. Keep in mind that receiving dividends and owning fast-growing stocks also affect your tax paying, but your brokerage will help you with the tax matters.

4. Get ready to research

Investing in the companies you know is always the best option; however, doing deep research before you put your money in the market is highly recommended. Say you really like company “A” and you are using their products daily -- but what makes a stock grow is not about how well you know about their products. You should read the company’s related news and study their earnings report before you make any moves, because a famous company does not make it a growing company, and a growing company does not mean it is profiting company.

5. Don’t be stressed

Be prepared to the worst situation, and only invest the money you currently do not need. It is okay if your stock goes down, which is completely normal. If a stock keeps climbing everyday with no break at all, that is not normal. Last but not the least, we are millennials and we have the brightest future waiting ahead; at this point, investing in the stock market is only the first try.

Cover Image Credit: Daniel Sutter: The space shuttle and the stock market

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Everyone Should Invest in Food Truck

The Real MVP's of the Food Industry

Now first I want to put out the disclaimer that food trucks are not overnight successes like we see in Jon Favreau's character, Carl Casper, in the family comedy movie, "Chef." However, after becoming motivated from the Cubanos being made in a beautiful shot of Miami, why not bring up the idea? The first point I want to make, since everyone doesn't have a ten year old kid who low key takes pictures of you while you're cooking all the time, is to, in fact, invest in social media. Mention that location whenever you post pictures and your fan base will come at you, especially if you're selling Cubanos. With that, as a potential owner of a food truck, you're going to have to create a Twitter. You're going to have to create a killer user name and invest in making those tweets. They don't have to be too creative, just relay the message out there. People, aka viewers of your feed, like to see developing stories, and if one continuously makes posts of their journey with their food truck, more people become curious as well as eager to see that food truck succeed and visit their location again.

Second point (and this point is coming from a college student who has no knowledge of permits) consider a music sound system. Get that Spotify or Pandora radio going, and if you're creating personal tracks on SoundCloud...get those tracks going. Honestly you could play the War of 1812 Overture and people would still appreciate you for busting out some music while everyone is enjoying your kick-ass food. My professional recommendation (if professional is an undergraduate with questionable music taste) would be the Boss Audio CX122. Play "The Middle" by Zedd and you're going to get every person in the early 20s going to your food truck eager for some food and soft core EDM.

Third and most important point is portraying positive, warm vibes. You got to make sure your staff don't mind getting their picture taken or being a part of a geotag (function that lets you add your location to a snap to make it look awesome). Similar to how being friendly with your consumers is a key foundation for any business, embracing your consumers curiosity and excitement to add you and your business to their social media is really helpful. With that, at this point, I should confess that I don't own a food truck, but I have worked in the food industry where people will take pictures with me even when I just bring them tabasco sauce for their medium temp. farm eggs with prosciutto and mozzarella. If you're in Chef Casper's food truck, get that rockin' shared selfies while you're serving a nice handmade cubano. It creates a fun environment that everyone enjoys and honestly it may just make your day better if you embrace in the small things like getting your picture taken or being apart of a Instagram Live Feed.

In conclusion, food trucks are, in my mind, an awesome concept. It's easy to see the hard work and time needed to invest in the business, but it's also easy to see the joy and innovativeness put into as well. Personally I love food trucks because each one tries to really develop their own theme. The staff that works in these businesses works hard, and you got to understand the close corridors that these people work in. When I get pissed, the last thing I want to do is be within three feet of the person that's irritating me at the moment. Therefore, props to them. With that, I recommend that you actively make it a mission to go after those food trucks that just so happened to setup near your city or at your university. Also, if you're looking for a light-hearted, feel good movie about food trucks, check out "Chef," the movie I've been low-key referencing all article long.

Cover Image Credit: Instagram

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Beginning Investing for College Students Part. 4

Using Yahoo Finance

Hello young investors! Today I will be going over Yahoo Finance this is a great tool to use in conjunction with Robinhood. It allows you to keep up with news that will directly affect stocks and ETFs. This article will read something like a fact sheet, so feel free to refer back to this whenever you are wondering about a specific statistic.

Yahoo Finance is a great resource because it is very simple and easy to use. It will give you the tools you need in order to invest. You should check it on a weekly basis at least. This will keep you updated on trends happening in the marketplace and which stocks to invest in. The most helpful tools are available to look at individual stocks, for this we will look at one stock for example; Best Buy.

Here you can see all the different factors that will tell you if this is a stock you should buy. Now don’t let all the numbers scare you, each one is simple to understand:

  • Previous close: this is the price of the stock when the market closed at the end of the previous period.
  • Open: This is the price which the stock opened at for the previous day.
  • Day’s range: this displays the highest and lowest prices the stock was sold at for the previous trading day.
  • 52 week range: this is similar to the day’s range. It show you what the highs and lows were over the last 52 weeks/1 year
  • Volume and and average volume: This shows the quantity of stocks that are traded on a daily basis and on average.
  • Market Cap: This is the total value of all of the stocks the company has on the market.
  • Beta: This shows how volatile the stock is compared to the market. The closer the beta is to one the better it mimics the movement of the market, growth or loss.
  • Price to Earnings Ratio: This is the price of the stock per every one dollar of earnings that the company makes.
  • Earnings Per Share: This tells you the profit per every outstanding share
  • Forward Dividend and yield: This tells you the estimation of the year’s dividend and the yield shows how much a company pays in dividends as a percentage of stock price.
  • 1y Target Estimate: This is an analysts estimate of what the stock should cost in 1 year.

So looking at these in conjunction with Best Buy, I would probably say to hold off on buying. Their earnings per share is a little low while the price to earnings ratio is a little high. Right now they are near the highest their stock has ever been. So I would likely think their stock is going to take a hit in the near future, that would be the time to buy. Looking at outside factors, the retail industry is in trouble so I would not count on a business like Best Buy in the long-term. This analysis is just part of the fun of investing. What do you think will happen? There are tons of articles on the company and how they are doing that will help you to make better decisions. Good luck!

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