Learn more about the challenge HERE.
This training/challenge is for educational and informational purposes only. These materials do not constitute a recommendation to engage in any particular securities transactions.
Investment products are: Not FDIC Insured | Not Guaranteed by the bank | May lose value
Week 1: Stock Basics
This week’s goal is to introduce you to stocks and help you build a foundation for investing in the stock market. This is a great place to start if you are a beginning investor or would like a refresher if you have already started your investing journey.
A stock is a type of security that provides for part ownership in a company. There are two main types of stocks: Common and Preferred. For the purposes of this challenge, we will discuss common stock. When you own common stock, you are entitled to vote as a shareholder and receive dividends. Stocks can also be referred to as shares and equity.
Day 1: Why Invest? Setting Goals
Owning stock allows you to participate in the growth of the stock without taking on the risk of starting or managing the company. But, it is important to understand why you want to invest and what you would like to achieve by investing in stocks. Of course, the goal will be to grow your money, but WHY do you want to grow your money? Your WHY helps you to better identify your goals.
Today’s Investing Activity: Select your investing goals, know your why, and write them down.
You can use my to help you with today’s activity. Click Here ==> “InvestingGoals-Wksht”
- Write down your investing goals
- Indicate why each goal is important
- Rank them in order of importance to YOU
- Share your goals in The Stocks & Stilettos Facebook Group or in the comments below.
I’m an investor with goals and I know why I invest. #summerstockchallenge @bit.ly/summerstockchallenge @stocknstiletto
Today’s activity focuses on setting goals because it’s not about how you start, but how you finish. Setting investing goals are similar to setting and working towards any other goals in your life. Your investing goals should be SMART. Here’s and example:
S – Specific: I want my ROTH IRA to grow to $100,000
M – Measurable: For my ROTH IRA to grow, I must contribute $2,000/year (or $84/pay period)
A – Achievable: I can achieve my goal if I consistently make contributions to my investment account
R – Realistic: I know that the stock market is no guarantee, but it is one of the better options to grow my money over time
T – Time-Based: I will need the money from my ROTH IRA in 20 years, but I must start building it up today.
It is important to be a SMART investor with SMART goals. This will allow you to keep your eyes on the prize and manifest your goals. It also provides a way for you to keep track at regular intervals to see the progress you are making towards your goals and if you need to make adjustments along the way.
Tomorrow: Day 2 – Anatomy of a Stock
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