Chapter 9: Getting Started
Choose a broker/bank
Firstly, let's choose a broker or bank, as they often serve similar functions. Some institutions are more focused on traditional banking services, while others specialize in stock broking.
Your choice should align with your specific needs and goals, whether you prioritize comprehensive banking services or robust investment options.
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The easiest way to start an account is to visit your local bank and ask them to open an account for you. This approach simplifies the process of depositing funds and allows you to keep all your cash in one place, making financial management more convenient.
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Although this is not always the case, we generally find that broker-specialized banks offer better terms for both buying stocks and fees for owning funds. These institutions often provide more competitive rates and a wider range of investment options, making them a preferred choice for many investors.
Account started
Starting off, you could invest based on our advice, in some index funds, or both.
The key is to get some stocks in your portfolio so you can become familiar with the process and experience of investing. This initial step helps you build confidence and understand how the market works.
Face your fears
We also think that investing in a very volatile stock is beneficial, as experiencing your portfolio's ups and downs can be quite daunting.
It doesn't need to be a large portion of your portfolio—maybe just 1% or even 0.5%—but it's important to understand how it feels to win big and lose big. If you need advice on which stocks are considered volatile, you can contact us for guidance.