 Good morning. Good morning, everybody. How are you doing? Welcome back to Dedicated to Financial Literacy. Russell Moore coming to you live again. Please hit the subscribe button. Give me a thumbs up if you like the content and hit the notify button so you can get content in the future. All right. This is the third installment, the third video, the third part to our series on Stop Market for Beginners 2022. How's everybody doing this morning? I hope you're blessed. All right. We're going to jump right into it. I'm going to end with the last five. If you want to see the previous ten that I spoke about, then you got to check out the other videos. I've got to make some adjustment on the audio, so forgive me. The audio, the music is a little loud, so I'm making some adjustment on those two videos, even as we speak. So let's get started. All right. The last one we started with was number ten. What type of companies do you invest in? So I'm not going to go over that one again. We're going to go to number 11. Invest in the index fund or the individual stock market. And most people would say, you know, most people would say, okay, which one is better? And I think when you're brand new to the stock market, an individual index fund, an index fund, which is a group of stocks, a group of companies, it's a bunch of them inside of this one fund. And what you want to do is just give to it on a regular basis. You know, just give and give to it and give to it and let it do its thing. For example, SPI, SPY, that's the S&P 500 index. And let me tell you something. It's average, and I said this in my first video, the stock market has averaged between seven and 10% a year. So if you just stick it in your money into SPI instead of a savings account, you're going to get at least seven to 10% annually. And with the stock market on its new record highs, you're going to even do even better right now. Okay, now we are due a correction. We are due a correction for all you bears out there. But for the most part, you're going to average seven to 10%. If you just stick it in an index fund. Now, if you go with an individual stocks and you start purchasing, you have much more of a chance to get larger gains. For example, my individual stocks I averaged last year on individual stocks that I purchased over the year. My gains were somewhere around 170%. I still had my index fund that did its normal 12%, 13%. But I blew it out of the park with my other stocks, my individual stock. So that's kind of the pro and the con. Now there is much more of a risk when you go with your individual stocks because they can go down as well, up and down, depending on the market. Pretty much the index fund, you're just basically setting it. You don't have to worry it would be concerned about trading and all of that. If one of your companies inside the fund begins to tank, you got another one that's going up. So they balance each other out. Unlike when you do an individual stocks, you say, hey, today I'm going to go with GoPro. GoPro could go up 5% or it can go down 12%. You see that index fund balances and leverages it out. I wouldn't say it's a hedge against inflation, but it's less risky. So as a new investor, you might want to go with an index fund and then just dabble, gradually get into individual stocks. But don't be afraid. That's the key. Do not fear. Don't be afraid. Don't be afraid to step out and test the waters and get a little risky with this. It's going to require risk. I'm going to tell you right now, either way you go, it's going to require you stepping out and taking a risk. But remember what's my motto. You won't earn if you do not learn. The key is learning. Learn and you'll earn. All right. Number 12, keep or buy more of what's working. If you get a stock, don't be so quick to sell for profit. A lot of people will sell their shares of a stock when the stock is doing well. What you want to do is the stock's companies like that, when they do drop, that's a discount that you might hear the term buy on the dip, buy on the low. That's the key with the stock market. You buy low and sell high, but that's just not a cliche. That's really what you want to do. Now, that doesn't always work out that way. You're not going to be perfect. You're going to make mistakes. There's going to be times when it drops and you should have sold. And the next thing you know, it drops and it keeps dropping. And now you're like, oh no. And then you end up holding it for longer than you should have. And that's why one of these programs, one of the videos I'm going to talk about risk management and how long do you hold a stock? When do you sell? When do you buy? And so, but what I am going to say is if you have a stock that's making money for you, do not be so quick to sell it. Now, if you need the money and you have to have, I had situations where I wanted to go into another stock and I wanted more shares of that stock. So there are times when I will take a profit on one stock. Maybe not all profit. I still will keep some shares, but I'll take some of that profit just to move it over here because there's another opportunity that has risen and I want to get more of those shares. So there's times when I'll do that. But for the most part, if something is working, if you've got a company and it is thriving, it meets all your fundamental analyzing. It's profiting. The leadership is great. The stock is on the rise. Buy more of that stock. Hey, when it drops some, that's a discount. Remember that, new investor. Dropping doesn't necessarily mean you failed or you don't lose until you sell. But sometimes that stock dropping is a great opportunity for you to pile on more shares. And then it's going to go back up. If it's a good company, it's going to go back up. That's going to be temporary. All right. So there we go for that. Invest in companies you understand. And I kind of mentioned this the other day in the last video. Invest in companies that you understand. You know, when you get into the stock market and you start talking to others, they're going to give you your opinions. And I'm going to talk about it at one point. There are references and resources that you can use. But you're going to hear a lot of voices telling you, oh, have you heard about this stock? You need to get this crypto. You need to do this. You need to do this. Everybody's going to give their opinion. And I'm not saying that you can't ever get a great tip from someone. That's not what I'm saying. All I'm saying is do not make that getting tips and relying on others to give you tips on stocks. Do not make that your foundation. You go look yourself. You do the research. You do the homework so that when you do buy the stock, you know, okay, the reason why I'm buying this stock are these reasons. And it's not just because Jojo told me. Betty Lou told you. No, you did the research. You looked it up. You saw the potential. All right. So going to companies that you understand, you know, your circle of competency, what you can, you know, so I wouldn't go into, there's certain SPACs or certain companies that I wouldn't invest in. I don't know enough. And I want to know that I understand how you make money. I want to understand your customer base. I want to know what's attractive, what separates you from other companies. And I want to understand that. Okay. All right. I'm not saying that there aren't one-offs where you can't, you know, get a tip from somebody and you jump in and you quickly get a rush and you get out. That'll happen on occasion. Just don't make that your diet. Number 14. What is a stock screener? A stock screener is a place, it's a program. You can find them free on several websites. And I'll give you a few websites where you can go and you can look up different criterias. They're filled with filters and it'll help you pick stocks. A screener or a scanner will help you pick stocks in certain areas with certain criterias. For example, you can look up and search for stocks that have a 20% profit margin and above. So you literally can click on the menu and saying I want all stocks that have 20% profit margin and above. Or I want, there are all kinds of criterias. And so these screeners will help you choose and help you pick stocks. Now, one that you can, a really nice one that I like, it's free. They have one that you can upgrade and pay for them, but you don't need to do that. It's FinViz.com. F-I-N-V-I-Z.com. And in the home page, you'll see what the Dow Jones is doing, the NASDAQ and the S&P 500. It gives you the three indexes so you know what the market is doing. And on the left, it'll list a bunch of stocks. It'll tell you the gainers and the losers. And then above, you'll see the screener, the filters, and you can just click on them and say I want all stocks that are doing this. That's a screener. It's a tool to assist you on picking stocks. Morningstar.com is another place you can go. And then the third one, Morningstar.com, and the third one that I use quite a bit is Yahoo.com-finance. So Yahoo has an actual screener as well. And I love FinViz. So I just gave you three screeners that you can use and you use them, especially when you're new to the stock market. It'll help you choose some stocks, but be very careful though that doesn't guarantee that those stocks will go up. It doesn't guarantee that they will ascend just because you picked them from a scanner. It just helps you categorize it. It helps you begin to look at stocks and say, hey, this company, and then here's the thing about screeners as well. There are a lot of stocks out there. There are thousands of stocks that you don't know about. See, you might know McDonald's. You might know Coca-Cola. You might know Amazon. You may know Google. But there are other companies that you have no idea about. A screener will get you in contact with some of those. And you know what? I might do a video just on screeners showing people what screeners look like. But like I said, if you go to finviz.com, you can see what a screener looks like. All right, thank you. Last but not least, resources, references, and research. I've already discussed research enough. I am going to give you some references. One reference I gave you. I'm going to repeat it again today. And again, I don't get any money for this. I'm not being sponsored by them at all. Jason Kelly wrote this book. It's called The Needest Little Guy to Stock Market Investing. This is a good book if you're a new investor. I want to encourage you to pick this book up and begin to read. There's so many things that he covers in this book. And I still, after years, I still read this book and go back to it from time to time. And you don't remember everything. So it's a very good book. Here's another one that he did. It's called The 3% Signal. Same guy, Jason Kelly. It's a little bit more technical, but it's still a great book. All right. Investopedia. Like Wikipedia? Investopedia is a good website. A lot of insight, a lot of information about investing in all kinds of areas. So that's a good website. Investopedia.com. Another resource. CNBC. If you have cable or you have access to CNBC is probably the number one business channel. All day long they have shows. Fast Money. The host is Melissa Lee. Great. She's great. The panel is great. All the guys and the girls that they have on there are wonderful. Jim Kramer is another good... is another good person on CNBC. Squawk Box. Several shows on CNBC. A great resource. Now here's what I'm saying. That doesn't mean that you take their advice on their stocks. Still I want to continue to say this. Do your own research. All right. Now in my next video I will give more resources. I'm going to end with this. Trying to keep the video at a certain length. And so I just want to say to all the new investors. Go for it in 2022. Learn about the stock market. If some people have questions about crypto. You got questions about crypto, the blockchain. Outcoins. Bitcoin. Put it in the comment section. Hey I got a question. What about Bitcoin? I'm not an expert on Bitcoin. I do own some crypto. I do own some. But I'll tell you what I do know. So if you have a question about it. But anything concerning stocks in the market. Please feel free. I am here to help. That's my whole goal. That's the reason for this channel. I have a lot of stocks to go to the moon. All right. Here's some other YouTubes. That I wanted to also as a resource. Jeremy. With financial education. An outstanding channel. He's very knowledgeable. More of a long term buy and hold type of investor. Doesn't do a lot of day trading. Probably does some swing trading. But he's excellent of breaking down different companies. And he's got a great and wonderful channel. He really does. Meet Kevin. Meet Kevin covers a lot of things. He's almost like a financial news channel. It seems like he's evolving. But Meet Kevin is another good channel as well. And Graham Stevens. I look at him a little bit. But definitely when it comes to stocks. Jeremy. With financial education. Great YouTube channel. Yeah. You'll definitely be blessed by him. And so I just want to give a little plug for those guys. Because they're doing big things. And great, great channel. Great, great content. All right. So that's it for me. Part three. 2022. Stock market for beginners. Okay. And be sure to put the questions in the comments. And I'll have a session. My final session will be for questions and answers. All right. Thank you. Have a wonderful, wonderful weekend. And I'll see you later. Bye.