Investing for Beginners - How I Make Millions from Stocks (Full Guide) — Transcript

Full transcript

1. 0:00I want you to imagine for a moment that
2. 0:02you started investing
3. 0:04in 1985. For a couple of years, your
4. 0:07money keeps going up and up until Black
5. 0:10Monday. They're calling it the Monday
6. 0:12Massacre. Wall Street had its biggest
7. 0:13one-day drop in history.
8. 0:15The result of the decline will hit
9. 0:16millions of people.
10. 0:17Up until this point, your friends
11. 0:19probably thought you were some kind of
12. 0:21genius, but now they're urging you to
13. 0:23sell. But you ignore them, and slowly
14. 0:26but surely the market recovers until The
15. 0:29Nasdaq index in freefall, down nearly
16. 0:3110%.
17. 0:32Driven by technology in general and the
18. 0:35internet in particular. Traders and
19. 0:37investors shell-shocked. Your friends
20. 0:39are on their knees begging you to pull
21. 0:41your money out, saying things like it's
22. 0:43time to take your profits before you
23. 0:45lose everything. But you hold strong and
24. 0:47things start going back up until you're
25. 0:50hit with It was one of the most profound
26. 0:52events in generations with huge
27. 0:54consequences.
28. 0:55Little did you know,
29. 0:57you're in for the ride of a lifetime
30. 0:59until The global economy will contract
31. 1:01by 3% this year, the worst downturn
32. 1:05since the Great Depression. Surely this
33. 1:07is the end of the stock market. But as
34. 1:09things reopened, the market soared 27%
35. 1:12from its low, setting new records. What
36. 1:15a comeback. Something I didn't mention
37. 1:17is the guy that invested his money in
38. 1:191985 was actually me when I turned 18
39. 1:23years old. The average return over this
40. 1:25time period was 11.23%
41. 1:28per year. So, if I'd have only invested
42. 1:31$250 per month during this time, then I
43. 1:34would have made $1,841,521.08.
44. 1:42That's a return of over 6,000%.
45. 1:45But between us, I invested a lot more
46. 1:48than that. So, now you understand the
47. 1:49power of investing, I think it's time to
48. 1:52jump into the details. Honestly, it's
49. 1:54amazing how many people talk about
50. 1:56investing, but don't actually show you
51. 1:58how to do it. So, I'm going to quickly
52. 2:00walk you through how to invest in stocks
53. 2:02on your phone. Of course, remember I'm
54. 2:04not a financial advisor. This is just
55. 2:07the way I do it, and before you do any
56. 2:09of this, make sure you have an emergency
57. 2:11fund of 3 to 5 months of living
58. 2:13expenses. The first thing on our list is
59. 2:15to set up an account. A lot of people
60. 2:17get stuck at this stage as there's a lot
61. 2:19of different investment platforms out
62. 2:21there and also different types of
63. 2:22accounts. But trust me, it's much more
64. 2:25simple than it first seems, especially
65. 2:26now you can do it all online. When I
66. 2:28first started investing, I had to phone
67. 2:30up the stock broker every time I wanted
68. 2:32to buy a stock. Let's use the Trading
69. 2:34212 app. I'm going to be using my son's
70. 2:37account as my account's pretty messy as
71. 2:39it has a bunch of free shares. He's
72. 2:41actually been running an experiment on
73. 2:43here for the last 3 months, but we'll
74. 2:45talk about that in a bit. The account
75. 2:47you open should be a tax-advantaged one.
76. 2:49This means you won't have to pay any
77. 2:51unnecessary taxes. These are known as
78. 2:53stocks and shares ISAs in the UK and
79. 2:56Roth IRAs in America. I think the UK
80. 2:58option's much better as you can invest
81. 3:00up to £20,000 a year without paying
82. 3:03capital gains tax on your profits, and
83. 3:05you can take out your money whenever you
84. 3:07want. In contrast, Americans have to
85. 3:09wait until they're old and retired, and
86. 3:11they have a much lower limit of $6,500
87. 3:15per year. Feel free to use whatever app
88. 3:17you like. This is just one of my
89. 3:18personal favorites. Next, we need to
90. 3:20deposit some money in order to start
91. 3:22investing. Most apps make it pretty easy
92. 3:24to deposit money. We just have to click
93. 3:26these three lines and then select
94. 3:28deposit funds. As you see, this brings
95. 3:30up a screen with lots of different
96. 3:32options like instant bank transfer, bank
97. 3:34transfer, debit card, and what we're
98. 3:37going to use, Apple Pay. Let's just put
99. 3:39in 400 so we can invest in some stocks
100. 3:43together. Feel free to invest whatever
101. 3:45you feel comfortable doing. Curtis, I'm
102. 3:47going to need your face for the phone.
103. 3:48All right, hang on.
104. 3:51This next step is super important.
105. 3:54Getting some free stocks. Since I was
106. 3:56planning to talk about Trading 212
107. 3:58anyway, I reached out to them to see if
108. 4:00they would be interested in sponsoring
109. 4:02this portion of the video. They agreed
110. 4:04and they're offering a free stock worth
111. 4:06up to £100 to anyone that uses the code
112. 4:08Tilbury when they create an account.
113. 4:10Plus, you can get more free shares by
114. 4:12inviting your friends. Both of you will
115. 4:14get a free share as long as they fund
116. 4:16their account. So, don't waste your
117. 4:17invites and invite brokeys. And also,
118. 4:19don't worry if you've already opened an
119. 4:21account within the last 10 days. You can
120. 4:23still use the promo code Tilbury in the
121. 4:26app and receive your free share. Right,
122. 4:28now we need to plan a winning strategy.
123. 4:31The first thing we need to remember is
124. 4:33that investments go up and down, so it's
125. 4:35very hard to pick winning individual
126. 4:37stocks. That's why I prefer to invest in
127. 4:39all of them. You probably think this
128. 4:41sounds a bit crazy, but stay with me. I
129. 4:43love listening to music. I'm a big
130. 4:45Deacon Blue and Queen fan myself. But
131. 4:48whatever you like, if you've ever
132. 4:49listened to the radio or used Spotify,
133. 4:51you'll be familiar with the music
134. 4:53charts. The better the songs perform in
135. 4:55sales and downloads, the higher up they
136. 4:57go in the charts. On the other hand, if
137. 4:59a song drops in popularity and sales,
138. 5:01then it drops out of the charts. This is
139. 5:03almost exactly the same as investing in
140. 5:06an index fund. All you have to do is
141. 5:08switch out the songs for companies.
142. 5:10Let's take the S&P 500 for example. This
143. 5:13is a list of around 500 of the largest
144. 5:16public companies in the USA, the big
145. 5:18dogs being Amazon, Google, Apple, and
146. 5:21Tesla. And just like the music charts,
147. 5:23if a company does poorly, then they risk
148. 5:25being removed from the list. Here's the
149. 5:27cool part about an index fund. With just
150. 5:30one click, you're not just investing in
151. 5:32one or two companies, but in every
152. 5:35single company on the list. So, if one
153. 5:37doesn't perform very well, your money's
154. 5:39okay as you're spread across all of
155. 5:41them. So, how can we put this into
156. 5:43practice? Well, we need to automate our
157. 5:45long-term investments. Remember I said
158. 5:47my son had been running a little
159. 5:48experiment for the last 3 months on his
160. 5:50account. Well, he's been investing £5
161. 5:53into the S&P 500 every day. Why £5?
162. 5:57Because that's about the average price
163. 5:59of a Starbucks coffee. Automating your
164. 6:01investments like this is a great idea as
165. 6:03it means you can just set it and forget
166. 6:06it. His portfolio is actually doing
167. 6:07pretty well. As you can see in the
168. 6:09green, his return so far is £36.46,
169. 6:13and that's a return of 5.03%.
170. 6:17Not bad for a little experiment. If you
171. 6:19want me to keep you updated with this
172. 6:20when it reaches the 6-month mark, let me
173. 6:22know in the comments. To set something
174. 6:24like this up, all you have to do is
175. 6:26select pies and then press the plus
176. 6:28icon. Now you can select whatever stocks
177. 6:30you want to include in your pie. For
178. 6:32this demonstration, let's just keep it
179. 6:34easy and pick this S&P 500 index fund.
180. 6:37By the way, look out for if it says
181. 6:38accumulation or distribution in the
182. 6:40brackets. Personally, I always go with
183. 6:43accumulation as it reinvests your
184. 6:45dividends back into the stock
185. 6:46automatically. The less I have to think
186. 6:48about, the better. Now, let's tap add to
187. 6:51pie and then the arrow button. If there
188. 6:53was more than one stock in here, then
189. 6:55we'd be able to change the percentages
190. 6:57with this slider. Right, tap next and
191. 7:00then auto invest. This value projection
192. 7:03is really awesome as it shows you how
193. 7:05much money you could make based on
194. 7:06historical averages. Of course, when you
195. 7:09invest, you can get back less than you
196. 7:10invested as investments can rise and
197. 7:13fall, but it's still a great way to get
198. 7:14an idea of how much you could make based
199. 7:17on data-backed projections. I mean, say
200. 7:19we invested £250 a month for 31 years,
201. 7:23you'll only have invested 94,000 of your
202. 7:26own money. Your portfolio would be 1. 14
203. 7:30million. If we expand this to 40 years,
204. 7:33your portfolio would be 3.56
205. 7:36million. It's worth having a play around
206. 7:38with this as it's quite motivational
207. 7:40seeing how much money you can make with
208. 7:42a relatively small amount invested per
209. 7:44month. And to all the people in the
210. 7:46comments saying, "Well, what about
211. 7:48inflation? It will make your money worth
212. 7:50far less." As long as you're investing
213. 7:52and not just keeping your money in a
214. 7:54bank account, then inflation is not
215. 7:56something you need to be extremely
216. 7:58worried about. Additionally, I increased
217. 8:00the amount I was investing to keep pace
218. 8:02with inflation. Now, let's pick some
219. 8:05individual stocks. Although I wouldn't
220. 8:07recommend that beginners bother with
221. 8:08picking stocks, I know many of you are
222. 8:10going to try anyway, especially since
223. 8:12you've seen people make millions from
224. 8:14the right meme stock that skyrocketed
225. 8:17like GameStop. All right, so there's
226. 8:18basically two ways to take a stab at
227. 8:21figuring out what's going on in the
228. 8:22stock market, technical and fundamental
229. 8:25analysis. Those quick deal day traders
230. 8:28are all about the technical stuff,
231. 8:30poring over price charts and patterns,
232. 8:32thinking they've got the scoop on how
233. 8:34the stock's going to swing just by
234. 8:36eyeballing the ups and downs. Now, me,
235. 8:39I'm more of a long-term player. I dig
236. 8:41into the nitty-gritty of a company's
237. 8:44fundamentals. You know, the financials,
238. 8:47who's steering the ship, and how
239. 8:48well-known the brand is. I reckon that's
240. 8:51where the real lowdown is for predicting
241. 8:53a stock's long-term success. So, I sift
242. 8:56through income statements, balance
243. 8:58sheets, and cash flow statements. When I
244. 9:00throw money into a stock, I'm in it for
245. 9:02the long haul, at least 2 to 5 years
246. 9:04minimum. To find stocks, simply click on
247. 9:07the magnifying glass icon. Trading 212
248. 9:09have made it incredibly easy to find
249. 9:11stocks by providing various lists such
250. 9:14as big tech, popular ETF, banks, and
251. 9:17most owned. There's also lots more. Take
252. 9:19a look when you find a bit of time. You
253. 9:21can even go on the social feed tab and
254. 9:23see different pies that other users have
255. 9:25created and copy it for yourself with a
256. 9:27single click. So, you don't have to find
257. 9:29the stocks yourself. On the stock page,
258. 9:31you can see the price graph, and by
259. 9:33scrolling down, you can actually access
260. 9:36all those important financial documents
261. 9:38I discussed earlier. Now, let's buy a
262. 9:40stock. Tesla will do. Now, this pulls up
263. 9:43a page with a couple of different
264. 9:44options. The first one is a market
265. 9:47order. A market order is just like when
266. 9:49you go to the supermarket and pay
267. 9:50whatever the price tag says. A limit
268. 9:52order, on the other hand, is like going
269. 9:54to a boot fair and haggling for the best
270. 9:56price you want. You can put in a price
271. 9:58that you're willing to pay, and if the
272. 10:00price ever gets to that level, then the
273. 10:02app will purchase the stock for you. As
274. 10:04a beginner, that's all you really need
275. 10:06to know. There's no point diving into
276. 10:08the other options. Let's buy 400 pounds
277. 10:10worth of Tesla so I can show you how
278. 10:12it's done. The final step is to press
279. 10:14send buy order, and boom! We're now part
280. 10:18owners of Tesla. So, now you know all
281. 10:21the steps, and you've got a free stock
282. 10:22with the link in the description. What's
283. 10:25holding you back? Well, it all sounds
284. 10:26great, Mark, but isn't investing a bit
285. 10:28risky? Well, take a look at this. If you
286. 10:31are investing a single amount every
287. 10:33month from the age of 25, you would be
288. 10:35around about here
289. 10:38if you invested for around 30 years.
290. 10:41Now, if you waited 10 years, this is the
291. 10:44difference it will make to your growth.
292. 10:47Somewhere around about here. Look at the
293. 10:49difference. It's absolutely crazy. So,
294. 10:52start young. If you have a diversified
295. 10:55portfolio of index funds and keep
296. 10:57investing at a gradual rate each and
297. 10:59every year, then even if there's a stock
298. 11:02market crash, then historical data shows
299. 11:05you should be able to endure the storm,
300. 11:07just like I did. If you want to know why
301. 11:08net worth goes crazy after 100K, then
302. 11:11you can check out this next video. But,
303. 11:13don't click on it just yet. Make sure to
304. 11:15subscribe if you want to grow your
305. 11:17wealth, okay? I'll see you over there.