 buy low and sell high. Hey, what's up B2. I'm Zeke and welcome to the Dream Green show. In this episode, I'm going to be showing you guys some beginner tips on investing inside of the stock market. Right now is a pretty decent time to invest into the stock market. Yes, I know you heard the news. We could be heading into a recession, but that is also great for investors because usually if you start investing in a recession, 365 days later from the all-time low, you can see gains up to 50% when usually in the stock market in a bull run, you can see the stock market go up anywhere from 6% to 12%. So the first most important tip that I could give you guys right now in this video is to buy low and sell high. And when the market is in a recession, you are getting some good quality companies at a steal of a price. So before we get into the rest of this video, I want to let you guys know the two brokerages that I use. I use Weboo and I use Moomoo. Right now, if you sign up with Weboo, deposit any amount of money, even just one penny, you can receive up to five free stocks, value up to $12,000. With those five free stocks, you could keep them inside the platform and decide to use it. Or you could sell those five free stocks and withdraw all of your money. Guys, it's literally free money. Also, I left a link in the description to Moomoo. Same thing, sign up, deposit $100 and you can receive up to six free stocks, value up to $12,000. Once again, with those free stocks, you could keep them inside the platform and decide to use it. Or you could withdraw all of your money. Guys, it's literally free money. And if you're a beginner investor, this is the best and easiest way to start your account. And then you could use the rest of these tips in this video that I'm going to get you guys to grow your account over time. So that one day you could be financially free. All right. So the next tip that I'm going to give you guys tip number two is that you need to create a diverse portfolio. You need to select good quality stocks. Don't just buy any trash stocks out there. In fact, for beginners, I highly suggest that you guys start off not buying individual stocks, but buying ETFs. ETFs stands for exchange traded funds. All right. So here we are on robber hood. This is tickets and Bokeo Coca-Cola. This is an individual stock. It's just, if you buy a share of this, you're going to be buying one share of Coca-Cola. And now you're a partial owner of this company. A ETF is a company like VOO, which stands for the Vanguard S&P 500. We basically track the entire market. VOO has over 500 different companies in the United States inside of that portfolio. They buy and sell shares of these 500 companies all the time. So it pretty much tracks the top 500 companies in America inside of that portfolio. So if you're not sure about what stocks, what individual stocks you need to buy yet because you're a beginner investor, you really don't know these CEOs. You don't know the backgrounds of these companies. Until you dive deep into what company you want to start buying individual shares of, then I highly suggest that you start off with an ETF like VOO, which has over 500 different companies inside of their portfolio. In fact, if we scroll down, you can see that they have companies in all different sectors, technology, healthcare, consumer clinical industries, utilities, basic materials. They have the entire stock market covered. And then you can look at their top 10 holdings to have Apple, Microsoft, Amazon, Google, Class A, Google, Class C, Tesla, Brick and Shared Halfway, NVIDIA, and Johnson & Johnson. So if you're scared to invest into one individual stock, then you could just invest into VOO or SPY, which tracks the top 500 companies. So I highly suggest that for tip number two, you start off investing into ETFs instead of individual stock. Now, one of the reasons I say invested to ETFs to start off instead of individual companies is because a lot of beginner investors don't know how to value these companies. So until you learn how to value these companies, then you need to just go ahead and follow the market and invest into ETFs. So tip number three would be don't buy without value. The difference between a great company and a great investment is the price that you pay. There were many fantastic businesses around in the 2000s, but few of them was actively priced at the time. Finding great companies is only half the equation in picking stocks, figuring out an appropriate price to pay is just as important to your investment success. So with that being said, you want to figure out an appropriate price. If you're looking at a share of a company and it's overpriced for you, I'll show you guys how to see if a company is overpriced or underpriced in many of my videos. If you want to figure out how, you could click this tag right here there, let you know exactly how to value a company by using the RSI, if it's overpriced or underpriced. But yeah, guys, if you think a company is overpriced then you can always wait. Let's look at the last three months of VLO. In fact, let's look over the last year of VLO. In fact, let's look over the last five years of VLO. Whenever you think it's overpriced, like right here, the price is always going to pull back to a price that's appropriate for that ticker symbol. When it goes up, it's always going to come back down. When it goes up, it's always going to come down to a price that you should feel comfortable buying these stocks at. Just because a stock is at a super high price and doing well, if it's overvalued, you do not want to pay. Remember the first tip, buy low and sell high. Don't ever buy high and sell low. So that comes back to not overpaying for certain companies. Be patient. Don't just always dive into it. If you think something's overpriced, it usually is and the price will usually pull back. And now that we're kind of heading to a recession, you can find some great stocks at a discounted price. All right, so the next tip I'm going to give you guys is to limit buy. If you, if you're on rival hood, you have two options. You can either buy at the market price. That means they're going to give you, we're going to use Coca-Cola, the market price right now is around $62.53. But if you want to buy 10 shares, sometimes they could give those shares to you at a price of $62.55. If you're a beginner investor, you don't want to overpay for your stocks. You want to set your limit at the exact price that you're going to pay for. Therefore, a rival hood is not still in any small percentage. It'll fraction of a penny of your money. If you set a limit, so all you have to do is hit trade, buy. And right there it says market price. That means, yes, they could give me the shares for $62.53 or they could give me the shares at $62.55. But beginner investors, we want to squeeze as many pennies out of these companies as we can. So at the top right, we can hit share. We're going to hit limit order right here where it says limit order the second one. Bam. And then we want to put in our limit prices, $62.53. In fact, if you wanted to pay even lower, you could put $62.52. And then once you do that, once Coca-Cola comes down to $62, that means that's the max that you're willing to pay $62.52. That's the max you're willing to pay. Once the price comes down, then you're, let's say, if you want to buy 10 shares, 10 shares will get filled at that exact price. So remember, if you're a beginner investor, don't ever use a market buy. Always use a limit order so that you can maximize your investments inside of the stock market. So that's going to bring us to tip number five, I believe. I think so. Once you're finally comfortable of not investing into ETLs, you finally find out how the CEOs of some of these companies operate. Hey, the CEO grew this one company to a billion dollars. Now the CEO is working for this other company. He did pretty good in that sector. Hopefully he could grow this company to a billion dollars as well. So I'm going to ride with him. Once you figure out the background of some of these companies, then you want to start, you want to pick around like five different companies and grow 100 shares inside of that company. So you don't want to have five shares of 20, 25 different companies. You can start off with five, you can start off with five different companies and grow to 100 shares in each of those companies. Because why you'll be able to generate passive income by selling options against your 100 shares. And you can only do that once you reach 100 shares. So tip number five would be to get to 100 shares of each company and do not buy options. Do not buy options starting off as a beginner investor. In fact, you want to sell options. So if you hit trade, trade options and go over let's say out two weeks, if you're buying a call, you're betting that a stock is going to go up. And if you're buying a put, you're betting that a stock is going to go down. Now when you're selling calls, you're going to sell calls when you have 100 dollars. Now you're using your 100 shares as leverage and you could generate passive income by selling options. This video will be way too long if I told you exactly how to sell options in this video. But basically I could pick the $65 call. That's me saying if Coca-Cola don't go up to $65 because we're in recession, it's probably going to go down. But if it don't go up to $65, then they're going to create in my account $24 immediately. And then they're going to release my 100 shares back to me. If it goes above $65, let's say we bought it in at $62.53. That means I will still get the profit from $62 all the way to $65 at where I'm selling it at. So it's a win-win scenario. It's very confusing. But if you want me to break it down once again, click this right here. That'll tell you all about selling options. Now that's going to take you to tip number six. I did say do not buy options. But if you are going to buy options, don't let it be short term. You want to buy leaps. Leaps are any options that's aspiring out longer than a year from now. So let's say right now we're going to pick June 16, 2023. Actually, let's pick January 19, 2024. So this is us betting that, hey, I believe two years from now, 2024 January 19 that Coca-Cola is going to be at a higher price than $62.53. Let's say we picked the $65 call that's going to cost us $500.95. Because remember options have to do with 100 shares. So as long as Coca-Cola is above $65, two years from now. If you think Coca-Cola is going to perform better over the next two years, we can make an unlimited amount of money. And this is a much safer play than buying weekly options. So I highly suggest that you guys look up leap options. That video is going to be linked right here. I did a video covering all of these. But this is a beginner's guide. So if you want to dive deeper into any of these tips, I'm going to leave a little pin link click that you could click right there. All right. And that's going to lead us to the last tip. Have proper expectations and avoid short-term trading. The first thing is avoid short-term trading. Go ahead. We're investors. We're not traders. We're looking to invest inside of the stock market. So that means if you buy a stock and you hold it for less than a year, you're going to be taxed completely different, wiping out a lot of your gains for having short-term gains, which is holding a stock and selling it underneath the year. Now, if you hold it over a year, then that's long-term investments. You get taxed completely different. So if you're buying and selling stocks every day, every week, every two months, then you're going to get taxed completely different than you would have if you hold on to these stocks long-term. And if you plan the long-term game, be ready for swings and stock market. Yes, right here, you guys can see I can make $2,000 in one day. But in fact, over the last three months, I'm actually down 19% heading into a recession. So yes, you can have your up days and your down days. So be ready to experience these swings inside the stock market. But luckily for you, if you're a beginning investor, you're getting in at a pretty doggone good price. The market is starting to level off. The market is starting to correct itself. So right now, for fact, you are not buying at all-time highs. Some people that started investing a couple of months ago were buying at all-time highs. So luckily for you, if you're just starting, you're not buying at all-time highs, but you can still experience these swing trades like that. And remember to hold on to your stocks for over a year. And there you go, guys. Don't forget to pick up your five free stocks with Weboo. Don't forget to pick up your six free stocks with MooMoo. Remember, that is free money, guys. Do not miss out on those opportunities. That is by far the best and easiest way to get your investment journey started. It's with free stocks. But that's it, guys. If you're new to this channel, I can see that a lot of you guys are not subscribed. So go ahead and hit that subscribe button. In fact, you can go back and watch a couple of my other videos. I make investment videos on my channel every week. So if you want to check out and go more in-depth into each of these tips, you can find that on my back catalog on my page. And if you guys want to join the Patreon, I'm gonna leave that link down in the comment section. Inside the Patreon, that'll take you to my Discord. Inside the Discord, I post every single time I buy and sell a stock. So I post my option trades, my swing trade, my leap trades. And we also have professional day traders in there that post all of that option trades every single day. So if you're new inside the stock market and want to be around a community of traders just like you inside of one Discord, we have the best community of traders inside the Discord. So if you want to be around people just like you, go ahead and check that link out down in the pinned comment section. But other than that, guys, I'm Zeke. Bring you to Dream Green Show and I'm out. Peace.