How to invest in stocks, from one beginner to another

By Charlie Sawyer

Published Sep 20, 2023 at 09:15 AM

Reading time: 2 minutes

49461

Investing is like, mega confusing. And if anyone tells you it’s not, it’s mostly likely because they wear quarter zips into the office and enjoy games of clay pigeon shooting on the weekends. But the thing is, it doesn’t have to be super boring and complicated. And while I might not seem to be the most capable teacher—particularly considering the fact that I tend to prioritise the shape of my acrylic nails over my assets portfolio—I’ve got this one figured out.

Welcome back to Explained By a Blonde, a SCREENSHOT series where I, your resident blonde, take difficult or hard-to-understand topics and magically transform them into bite-sized nuggets of knowledge. While I’ve been more at ease getting you all a refund from your universities and warning my fellow shopaholics about the dangers of Klarna, explaining investment to fellow gen Zers might be my trickiest challenge yet.

Anyhoo, strap on a pair of your most serious-looking glasses and let’s get going.

What is investing?

Investing is basically the process of putting money into something or buying something with the aim of getting a profit in return. You’re inherently setting certain money aside in hopes that, in the future, it’ll increase in value. It’s kind of like getting Botox.

Of course, there are no guarantees in investing. There’s always a risk that you could lose money. However, if you’re smart about it and start early, then you have a genuine chance of racking up some impressive wins.

How much money should I invest?

It’s completely up to you how much you choose to invest. I think there’s a massive misconception that in order to get involved with investing you need to have an easy £3,000 lying around—that’s just not the case. And, if you’re anything like me, a 20-something-year-old who spends her days worrying about rent payments and water bills, it’s quite intimidating feeling as though you’re never going to be able to get on the investing ladder.

Don’t stress though, if you are considering getting into investing, you can start yourself off with small lump sums: £50 or maybe £100 if you’re feeling boujee that month. The point is, there’s no ‘right’ amount of money to start off with.

What are the two most common ways to invest?

Now, for anyone who wants to start off in the investing game, you need to be aware of two key terms: shares and funds. I personally like to remember them by thinking about Cher and Fergie.

The main difference between these two terms is that when you buy a share, you’re effectively buying a small stake in a particular company. However, when you buy a fund (or, as some people call it, mutual funds) you’re buying a mix of different investments.

The thing to remember is that if you become a shareholder in a particular company, your investment is reliant on that company’s success rate. If the company does badly, you might see a loss. When you buy a fund, however, you spread yourself across a number of different investments, meaning that you’re minimising the risk of being left heartbroken with all your money down the drain.

Investing is realistically all about risk. If you’re starting off, you’re going to want to invest small amounts in ‘safe’ options. In other words, start slow, okay? You have time. It’s not like you’re a millennial or anything.

What are some of the most popular stocks to invest in?

While there’s no right way to pick your stocks, I can provide you with a basic guide regarding how you might want to go about it. Some of the most popular stocks include: Tesla, Apple, Uber, Airbnb, and Peloton.

What are some easy-to-use investing apps for beginners?

Investment apps can be really intimidating, particularly because their colour schemes are usually really ugly. But, nevertheless, we need to get our bread somehow, which is why I’ve done some research and listed these five apps as the easiest ones to use as a beginner. Plus, some of them have fun names.

Do some research, pick some safe options, and just wait to see what happens. The more you tinker about with it, the more you’ll feel like a proper finance babe. Now, go get investing, boo!

Keep On Reading

By Charlie Sawyer

What is inflation, and how is it impacting gen Z?

By Abby Amoakuh

Only at Coachella can you be caught saying the N-word and still perform without question

By Eliza Frost

The Summer I Turned Pretty is getting a movie. Could it be here in time for Christmas?

By Abby Amoakuh

Campaigners call for gamers who carry out virtual rape in the metaverse to be charged as real-life sex offenders

By Abby Amoakuh

You star Madeline Brewer faces misogynistic backlash after internet brands her character unlikeable

By Charlie Sawyer

Australian actor Joseph Zada cast as Haymitch Abernathy in upcoming Hunger Games prequel

By Charlie Sawyer

This Oscar-winning actor is the top pick to play Voldemort in HBO Max Harry Potter reboot

By Julie Huynh

Hockey fan edits are taking over TikTok, and it’s all thanks to Gen Z girlies

By Charlie Sawyer

Odd Muse founder Aimee Smale fights back against fast fashion controversy on TikTok

By Fatou Ferraro Mboup

MrBeast hunts for volunteers to test the viral question: who would win between 100 men and one gorilla?

By Eliza Frost

Netflix is predicting your next favourite show based on your zodiac sign 

By Eliza Frost

Netflix’s new Trainwreck documentary exposes the rise and scandalous fall of American Apparel

By Eliza Frost

How The Summer I Turned Pretty licensed so much of Taylor Swift’s discography for its soundtrack 

By Eliza Frost

American Eagle and Sydney Sweeney face backlash with employee’s LinkedIn post adding fuel to the fire

By Eliza Frost

Misogyny, sexism, and the manosphere: how this year’s Love Island UK has taken a step backwards

By Charlie Sawyer

UK women who miscarry could face home and phone searches following new anti-abortion police guidance

By Charlie Sawyer

President Trump and JD Vance angry over the DNC setting up a taco truck outside RNC headquarters

By Charlie Sawyer

UK government’s new murder prediction tool draws comparison to Tom Cruise film, Minority Report

By Fatou Ferraro Mboup

Trump launches his 2028 presidential campaign, ignoring constitutional limitations

By Fatou Ferraro Mboup

Did Chappell Roan push her assistant on the red carpet? We analyse the footage