🚨 Investing in Stocks For Beginners 🚨

This thread is for absolute beginners who want to invest using the Jamaica Stock Exchange - @jastockex

It's an overview of the process, what is needed and where to look for information.

🧵
What is a Stock?

A stock represents fractional ownership of a publicly listed company. A company will issue a stock to raise Capital to fund its operations, purchase equipment or any other objective.

The first time a company lists is called an Initial Public Offering - IPO

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How do you make money from the Stock Market?

Two main ways:

1⃣ Capital Appreciation - you purchase stocks and resell at a profit.

2⃣ Dividends - some companies pay out dividends from their profits. This varies per company and isn't guaranteed.

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How Do I Purchase Stocks?

In Jamaica, you can purchase through the Jamaica Stock Exchange (@jastockex) using a Brokerage account to facilitate the transaction.

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Requirements for a Brokerage Account:

- TRN
- ID
- Proof of Address
- Source of Funds
- References
- Initial Deposit (varies per broker)

You can open some accounts with as low as $5,000. Brokers are listed here: jamstockex.com/investor-centr…

4/
Three ways to Invest in Stocks

1⃣Unit Trust/Equity Funds - most Brokerages offer funds that include a variety of stocks.

2⃣ Pension Plan - some pension plans allow for exposure to the Stock Market.

3⃣Owning stocks directly - this option requires most effort

5/
How to Know Which Stocks to BUY?

1⃣It starts with Research. Start with companies and industries you understand. More on this on another thread.

2⃣Know the companies Financial Position - through Financial Statements: Balance Sheet, Income Statement & Cash Flow Statements

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3⃣Understand the value of the company - use Financial Ratios to determine the value.

4⃣Understand the sentiment of the company

5⃣Project future Earning potential for the company.

These will be explained further in another thread.

7/
Finally,

Invest in your Financial Education by following us and subscribing to our YouTube channel. We publish content on Financial Education daily/weekly.

youtube.com/c/LearnGrowInv…

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More from @LearnGrowInvest

24 May
Thanks to those who joined @guruintraining_ @Trev_iBeMe and myself for the session.

We covered the following:

1. What is investing?
2. What are assets and how to identify them?
3. Investment terms you should know
4. How to get started with investing in the stock market.
I shared the @BaritaLimited Roadmap tool at Barita.com/roadmap for determining your investor profile and preferences.

It provides a report thats emailed to you with the identified investor profile (which can change over time).

Use as a guide, not as absolute.
Next we covered the following terms

1. Risk vs Reward
2. Unrealized Gains/Losses
3. Exposure
4. Time Horizon
5. Stock/Share
6. Fair Value, Undervalued, Overvalued
7. Bulls/Bears
8. Volume/Index
Read 5 tweets
23 May
What are some of the ways you can use debt to invest?

Is it a good idea to use debt to invest?

What are some of the considerations to have when using debt?

Let's look at some of the answers to these questions from our last meeting with @anandchokkavelu from @themotleyfool

🧵
Let's start by defining margin...

Margin is the money borrowed from a broker to purchase an investment. This is usually a $ of your overall portfolio and your existing securities are used as collateral for the loan/margin.

1/
The use of margin can amplify gains, however, it can also amplify losses.

@anandchokkavelu shares the perspective that many do not consider enough the disadvantages to margin in considering the risk of their portfolio going in the opposite direction when using margin.

2/
Read 8 tweets
14 May
What is Common Sense Investing according to @NickGreenr?

Quite simply its doing the obvious, follow these simple steps below to get out of your own way as an Investor

🧵
Tip #1 - Follow Your Curiosity

Read the Annual Reports, News and any information about companies in the industries you're familiar with. It starts with being curious about the companies and NOT the stock prices. Ignore the NOISE...

1/
Tip #2 - Educate Yourself

Spend time to learn the language of Investing. Accounting terms, Financial Statements, Ratios, etc. are all worth getting to know so you can interpret what others say about the companies you're interested in. Being educated means better decisions

2/
Read 9 tweets
13 May
🎊🎊 CONGRATSSSS to all our winners 🎊🎊

Listen and look out for us to contact you!

Thank you all for your participation and for celebrating with us for our 1-year YouTube Anniversary 🎉🎉.

May these prizes truly bless you! @ShaunaKayeCamp1
Read 4 tweets
1 May
💰Savings and Debt Management - Tips 💰

Here are some tips to help you take control of your finances, increase savings and manage debt

These tips may not work for every situation, however, can be adapted to suit each persons needs

Thread

1/
Tip #1 - Start a Budget

You probably guessed this first one. It's obvious, it works but many are not sure how to start and how to remain consistent. A budget doesn't mean you are perfect with your spending...it means you consistent track and measure where your money goes

2/
cont'd...

If you spend more than budgeted, think about why it happened and try to put measures in place to stop the habit or mitigate against the decision for the next month.

Also, look for patterns of spending that represent opportunities for savings.

3/
Read 9 tweets
28 Apr
🚨 Beginner Mistakes to Avoid In the Stock Market 🚨

Experience is no doubt the greatest teacher, however, there are some mistakes you want to be aware of as a new investor.

Watch out for the following mistakes and tell us if you have made any of them...

Thread

1/
Mistake #1 - Not Understanding What You're Buying

A #stock represents part ownership of a listed company. When you own it you should treat it as you would a business that you're now a shareholder. This means you should manage your portfolio as a list of companies you own

2/
Mistake #2 - Not Doing Any/Enough Research

Imagine being successful in the Stock Market and not knowing why. Sounds weird? This happens to a lot of new investors who BUY because someone else told them to BUY or they inferred from a post on social media

3/
Read 7 tweets

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