Investing 101: How to Start Investing (Beginner)
Investing 101 for beginners: what investing is, how to start, how to manage risk, and a simple plan to invest in stocks long term.
What is investing?
Investing is putting money into assets (like stocks) with the goal of growing your wealth over time. For most people, long-term investing is about consistent contributions, diversification, and patience.
A simple beginner plan
- Start with diversified ETFs or index funds.
- Automate contributions (dollar-cost averaging).
- Avoid panic selling; focus on a long time horizon.
- Learn fundamentals and add individual stocks gradually.
The most reliable investing strategies are often boring: diversified, low-cost, and consistent. Boring beats emotional decision-making.
Next steps
Use our tools to practice: browse a stock you know, compare price vs intrinsic value, and screen for quality businesses.
FAQs
How much money do I need to start investing?▼
You can start with a small amount if your broker supports fractional shares. Consistency matters more than the initial amount.
What should a beginner invest in?▼
Many beginners start with diversified index funds/ETFs, then add individual stocks later as they learn fundamentals and valuation.
How do I reduce risk as a new investor?▼
Diversify, invest for the long term, avoid leverage, and compare price vs intrinsic value to avoid overpaying.
Related
Intrinsic Investor is for education and research only. Not financial advice.