Can You Start Investing in Stocks as a Stay-at-Home Parent? 61

Can You Start Investing in Stocks as a Stay-at-Home Parent?

This is a guest post by Andrew Altman, the editor in chief of SlickBucks.com, a website that helps people learn how they can improve their wealth by investing.

One of the myths of investing in stocks is you need a lot of money to get started.

Most people associate the stock market with men in fancy suits on Wall Street. However, it’s possible to invest in stocks with a small amount of money. Investing as a stay-at-home parent is also possible.

You must be aware of several important things first in order to avoid blowing through thousands of dollars.

Investing well requires learning how to invest and practicing what you’ve learned. You don’t have to practice with real money. Many sites offer demos or virtual trading accounts, so you can practice without spending actual money.

Here are seven tips to help you start successfully trading stocks as a stay-at-home parent.

Learn About Investing

Learn how to invest.

Unless you already know how to trade stocks, you must dedicate time to learning how to invest in stocks.

Stock trading is different from forex trading and other forms of investing. Thus, even if you already know about another form of investing, each type has its nuances.

You must learn specifically about stocks to be successful investing in them. Read books on stock investing, sign up for online courses, or read the online articles on stock trading to educate yourself.

Take Stock Trading as Seriously as a Job

Treat investing like a job. A mistake some people make is treating investing like gambling or a hobby. To be successful at investing you must take it as seriously as a job.

You’ve decided to become a stay-at-home investor to support your family, so it is your job. It takes a high level of self-discipline to make sure you put in the work on schedule. You won’t have a boss watching over your shoulder.

Stay-at-home investors must motivate themselves and keep themselves on track.

Research a Company Before Investing

Research the company and its products and services. You need to understand what the company does in order to make wise investment decisions. It will also let you know whether or not the company is in line with your values.

For example, if you’re against testing products on animals, you won’t want to invest in a company that tests on animals.

Aside from the concern of values and ethics, having an understanding of the company will give you a better idea of whether or not they’re going in the right direction. If they make a decision or product change that customers won’t like, you’ll know to expect the stock price to decline.

Read the Company’s Financial Statements

Read a company’s financial statements before investing in their stock. Important financial statements to look at include the balance sheet, cash flow, and the income statement.

The thought of having to check a company’s financials makes some people nervous, but it’s not as difficult as you might think. Once you know what the terminology is, you’ll read financial statements with ease.

Stay Updated with the News

Smart SEO Tactics for New Businesses & Startups - letsreachsuccess.com

Keep up with the news, especially that which is relevant to the stocks you’re investing in or considering investing in.

News events and politics influence the stock market. Checking the news every day will give you clues on how a stock’s price will either rise or fall.

If a company has a scandal, then there’s a good chance its stocks will decrease, at least temporarily.

The opposite is also true. Good news like buzz surrounding an upcoming product launch often lead to increases in the company’s stock prices.

One way to stay up-to-date with the news is to set up Google Alerts that are relevant for the stocks you’re investing in. For example, if you’re investing in Nintendo, you could set up Google Alerts for the keywords “Nintendo”, “Pokemon”, and “NTDOY”.

You can also check news aggregation sites for the most important news that affects the stock market.

Save Money to Cover Taxes

Don’t forget the government will take taxes from your investment income. While building your investments over the year, be careful to not spend all of your profit because you have to pay taxes on the earnings.

How much tax is taken depends on which country you live in and what the current tax rate is. There is usually a separate tax form that you must fill out to record earnings from investments.

Look at the Ratings

Check the ratings that others give the company for investing in. Examples of reputable websites that rate publicly traded companies for investment purposes are Moody’s Investing and Motley Fool. It’s helpful to hear a third party’s opinion on whether to sell, buy, or hold a stock.

Remember that these professionals are not always right, so don’t question a decision too much if you’re confident in it. Just take what they recommend into consideration.

Also pay attention to who was correct about the best decision to make on the stock after the price’s change. It will help you increase your accuracy.

True Story of a Successful Stay-at-Home Investor

An example of a parent who became a stay-at-home parent is Jane Gallina. She has reached a six figure income through investing and only works at it a few hours per day. This leaves her time in the afternoon and evening free for her family and other things she likes to do.

However, she points out that it wasn’t smooth sailing in the beginning.

She made a few major mistakes that beginner traders are warned about that caused her to lose $6,000 the first three months.

After recouping and disciplining herself more to stick with the key rules of investment, Gallina started succeeding with investing.

Stock investing is one of the best opportunities for a stay-at-home parent.

Once you overcome the learning curve and practice for a few months, you’ll be able to grow your income through investing. Stock investing only requires a few hours of your day, unlike other stay-at-home jobs.

How much you earn can constantly increase as your trading account grows as well. With other stay-at-home jobs, you don’t have much potential for becoming rich any time soon. Follow the tips listed above and commit yourself to figuring out how investing works to become a successful stay-at-home investor.

Get The Lifestyle Designer's Digest
Directly into your inbox every Monday.
Previous ArticleNext Article

Becoming Your Own Boss: Tips on Getting a Business Off The Ground 7

How Writing a Blog Can Help You Live the Life You Dream About

Becoming your own boss is a complicated process, and not everyone does it the same way.

I got lucky. I was still working when I got my business off the ground, so I had a source of income while I was working the kinks out of my business. I did most of my work for the new business when I got home or on the weekends. I asked for a change in job responsibilities at the office so that I didn’t have as much on my plate.

This all gave me a chance to start earning money without going into debt. When it was feasible, I stopped working my regular job and transitioned into working for myself full time. It took about a year and a half.

Establish clear boundaries.

 

Sometimes people don’t take you seriously when you tell them that you work for yourself. They think you are always available to chat or have lunch.

I had a number of friends that would call me at all hours, assuming I was available because they wanted to talk. Granted, it was nice to have that freedom at first. But, I soon realized that if I was going to be successful, I couldn’t let those kinds of distractions interrupt my workday.

Save before you start working for yourself full time.

I was in pretty good shape when I made the transition, but looking back, a few more months with a paycheck would have been wonderful.

When you start your own business, money can be very tight. You never know what you are going to make month to month.

I had one customer that initially made up most of my revenue. That customer only paid on a quarterly basis, which meant that times were tough in between payments.

I had to spend money to build the business, which meant there wasn’t a lot left over. If I didn’t get a payment right on time, it was very difficult to deal with.

There were times when I had to ask for a loan from family members simply to pay my bills.

Reach out and build a support network.

4 Tips to Track Your Remote Employees' Progress Without Demoralizing Them

It can be really difficult to adjust at first. You have great days and you have terrible days. You meet goals some months, while other months you are left wondering where you went wrong.

If you make a mistake, you alone are responsible for it and your business and reputation can suffer. It is easy to feel depressed at times. You may even start to feel like you can’t handle running a business and that you made a big mistake when you left your office job.

Remember that you are not alone. All entrepreneurs have these moments, which is why it is so important to connect with others in the field.

Take time for yourself.

I had a honeymoon period of about half a year. It was really exciting to see the business get bigger. Each milestone that I met was a reason to celebrate.

However, heading into the second year, it was more difficult. I was tired. Things weren’t as exciting because they weren’t new anymore. And then, year three came along. I was done with working such long hours.

I was done with having no time off. Burnout is certainly an issue in this business, so you have to figure out how to balance your personal and your professional needs.

It took me a long time to get where I am today. I had to do a lot of research. I had to educate myself on business. I had to find an SEO expert. I had to figure out who my main competitors were and keep an eye on them. I also had to stay current with what was happening in the field so that I didn’t fall behind.

No matter how hard I worked, it seemed like I could never get caught up. Running a business is a big responsibility.

If you are interested in starting your own business, you want to set yourself up for success. Try to cut back on your living expenses. Make sure you have substantial savings. Set up an area in your home where you can work, free from distractions.

If you are married, get your spouse on board. He or she can help pay bills while you are getting your business off the ground.

Your business is only as good as you are.

Make sure you have a support system of other business professionals. These people can help you acknowledge your weaknesses, encourage you to keep moving forward and advise you on common mistakes.

You can try and go it alone, but it will be very difficult for you. As with anything else in life, your support network has a lot to do with your success. You are probably strongly invested in your business; after all, it is something that you created. Make sure you have people that you trust to help you along the way.

***

Grace Lee has been practicing in the field of digital marketing for several years now. She has already brought numerous sites in search engines’ first pages in search results. In her spare time, she loves listening to podcasts about Google algorithm updates and other matters related to SEO.