Purchasing stock is an investment in the company’s growth and long-term performance. You wind up making money that way. Opening an online investment account and using it to purchase stocks is one of the greatest ways for novices to learn how to invest in stocks. To begin investing in stocks, you don’t need a lot of money.
Although you’ll need enough money to begin trading, several brokerages let you open an account with zero dollars. Even modest sums, like $10 or $20, will suffice. Additionally, some brokers like ATFX provide paper trading, which allows you to practice buying and selling using stock market simulators before making any actual investments.
How to invest in stocks in 7 steps
1. Decide how involved you want to be
Before anything else, figure out how much control you want. Do you enjoy researching companies and watching the market move? Or would you rather hand it off and let someone else manage it? This choice will shape everything that follows.
2. Pick the right platform to get started
If you’re going solo, you’ll need to open a brokerage account. If you’re going hands-off, a robo-advisor might be better. Either way, make sure the platform fits your style, some are sleek and beginner-friendly, others are packed with tools for active traders. Not all brokers are built the same.
3. Choose the type of account that suits your goals
Are you investing for retirement, or just trying to grow extra cash? Tax-advantaged accounts like IRAs are great for long-term goals. A standard brokerage account gives more flexibility but no tax breaks. Choose based on why you’re investing, not just how.
4. Learn what you’re actually buying
Not all stock investments are created equal. You can buy individual company shares, or go with funds that hold dozens or hundreds of stocks in one bundle. Index funds and ETFs are less flashy but far more stable for most people starting out.
5. Set a money game plan
Don’t guess. Decide upfront how much you’re putting in, how often, and where the limits are. Start small, build the habit, and increase as you go. Fractional shares mean even $20 can get you started. No need to wait until you’ve “saved enough.”
6. Think long-term and mean it
This isn’t a sprint. Stocks will go up, dip, bounce, and test your nerves. Ignore the noise. The people who come out ahead are the ones who ride the waves and stick to their strategy through all the headlines and panic.
7. Keep tabs on your portfolio (but not every second)
Check in every few months, not every morning. See if your investments still match your goals, and make small adjustments if they don’t. Diversify. Rebalance. But don’t micromanage. This isn’t a video game.
Best stocks for beginners in 2025
Choosing stocks can be a daunting task, particularly for novices. After all, the major U.S. exchanges list thousands of stocks. Although there are many complex tactics and methods involved in stock investing, some of the most prosperous investors have only followed the fundamentals of the stock market.
Warren Buffett famously stated that the best investment most Americans can make is a cheap S&P 500 ETF. This usually involves using funds for the majority of your portfolio and selecting individual stocks only if you think the firm has the ability to expand over the long run. Approximately 500 of the biggest publicly traded firms in the United States make up the S&P 500 index. In the past half-century, its average yearly