What you need to know about buying stocks.

If you just opened up a brokerage account and want to learn how to buy stocks, then you landed on the right page because I'm going to share what you need to know about buying stocks.

1. The First thing is to open up a brokerage account.

There are many different kinds of places where you can invest in stocks and you can do it from the comfort of your phone. All you need to do is create an account, download the app and start the process. The process is free. What's required is transferring money to your new brokerage account because some accounts are mandated that you have a balance of $500 to $1,000 to maintain the account. But that wont be a problem because you're doing this to invest anyways, so you're automatically going to be transferring money because the ultimate goal here is to earn the benefits of investing in stocks.

One broker we recommend is M1 Finance. You can sign up here for free and have the option to open a brokerage account and a (checking or savings account) too. M1's debit cards are freaking awesome and their platforms are fun and mobile user friendly. If you want to sign up to M1's credit and investing, click here. If you want more information about M1's app, click here. But lets get back to what I was talking about.

Some benefits of investing in stocks include stock appreciation, dividends, compound interest and capital gains. There might be more ways too, I just can't think of them right now, but these are the main benefits from investing in stocks and man, I have to tell you, it is wonderful to collect and see your money grow every time you check your account.

Here's what you need to know about stock appreciation, dividends, compound interest and capital gains.

Stock appreciation is when the stock increases. For example, if you see a stock at $23.46 a share and check it again 8 months from now and see that it climbed to $44.77 a share. That is a perfect example of what stock appreciation is. The stock simply increases. And when the stock increases, your money increases with it. It's incredible.

So what are dividends? Dividends are what gets paid to the shareholder. If you buy stocks, then you are a shareholder. If the stock pays dividends, then you will receive dividends for each share you have.

Here's an example. If the stock pays $0.87 in dividends every quarter (and there's 4 quarters in a year) you will get paid $0.87 for each share you own (every quarter). Imagine you owning 125 shares in just 1 stock, and that same stock pays a dividend of $0.87 cents a share. Pull out your calculator and do .87 cents times 125.

The equation and answer is: (0.87 x 125 = 108.75)..

You will ultimately get paid $108.75 (each quarter) in just dividends alone. I'll repeat that. (That's dividends alone). And don't forget about all the other benefits investing in stocks comes with like I mentioned above.. Crazy right? And check this out, owning 125 shares is easy. So its paramount to steadily invest aggressively so you can earn more and more and more. You can actually live off dividends if you own enough shares. But not every stocks pays a dividend, so you need to find a stock that pays out dividends because dividends are awesome! Its like receiving a paycheck.

What about compound interest? Compound interest is when your stock multiplies over time. Its basically receiving interest on interest on top of interest over time. Compound interest is magnifying! Its the whole reason the rich invest in stocks in the first place because compound interest alone is like winning the lottery if you pick a stock that appreciates over time. You see what im saying? I bet you're starting to understand the drift in the air now huh? Yeah.

Then there's capital gains. Capital gains is what you receive at the end of the year and I think you receive this for every stock, mutual fund, index fund, ETF fund, REIT fund you invest in. Which I think is crazy. Its kind of like another boost to your income at the end of the year. But stock appreciation and compound interest are like gold mines. They are like crack to a human. If cocaine makes people go crazy. Stock appreciation and compound interest makes money go insane! Especially when you invest long term. It's seriously unbelievable.

So after reading all this shit and knowing the numerous ways you can earn from investing in stocks, how the heck do I do it? I already explained that a person needs a brokerage account to start, and I also explained the benefits of investing. So how do I pick a good stock so I can earn this shit too? I want to make money from the stock market. I want dividends.

Okay, well listen up.

2. After opening an investment account. The second thing you must do is research all the stocks you want to buy.

Investing in stocks will take a little research. And this research would maybe take about 30mins to an hour if you just want to do it fast. But you'll have to research information like (charts and annual reports). Those are the 2 main sources I use to pick a good stock.

I look at charts and read annual reports when I want to find a good stock. So where can you find annual reports? Find them on the sec.gov website. Go to that website, enter the ticker name of a stock and look at their 10-k's (annual reports). The 10-k reports show everything that happened for the entire year, all the company plans and expectations, their downfalls, their future outlook, and most importantly, all the money that was recorded for the year.

This information is a must if you want to find a good stock that will appreciate over time. If you find a stock that appreciates over time, the other benefits will follow. That's why its important to find a stock that "increases". Not a stock that goes up and down every year, basically all over the damn place. No, you want one that has volatility and increases as the years go by.

3. Once you gathered all the charts and 10-k's of a company, the third thing you need to focus on is earnings.

How much is the company (or stock) earning every quarter? How much is the stock earning every year?

Those are the questions you need to ask yourself if you want to pick a good stock. Because a company (or stock) that earns a steadily increasing income every quarter and every year, means you (the shareholder) will receive this same benefit. You wont receive what the company earns, but you will receive a piece of the pie based on the amount of shares you own. The company will pay you based on how much shares you have.

So the game is to own as many shares as you can afford, so your account will grow. I hope this information gives you an idea of how to invest in stocks and if you're investing already, more power to you! But if you are brand new to investing, feel free to copy these notes because this is valuable information you cant get anywhere else. People don't just say this stuff. You have to "look" for it "yourself". The best things in life come from the actions you take. So don't sit there thinking and wondering like damn, I'm scared, should I do it? Should I do it? By the time all this time passes about you thinking and wondering if you should of done it or not, someone else already beat it to the punch before you. So research as much as you can.

4. The final task is to buy the stock you researched.

After you've looked at all this information about the stocks you want to buy, it's time to make the final decision on purchasing these stocks. This decision is important because once you buy it, the benefits will start. And if you don't buy it, you will lose out on all these gains from the stock market. Nothing bad will happen when you buy a stock (so long as the company is profitable every year, nothing bad will happen) But if you choose a stock that crumbles down on the charts, your money will follow that too. That's why researching is important. You have to buy a stock that steadily increases every year. That is the name of the game because stocks follow earnings. Always remember that.

Lets do a quick recap.

When it comes to buying stocks, you must have a brokerage account. To get one, sign up by clicking here. You can have as many brokerage accounts from all the different investments firms that exist. There is no limit. Then, once you have an account, start doing your research! After you find a good stock, just buy that thing. Don't ask no more questions. Because once you buy, you'll start seeing your money work while you sleep. That is truly what everyone wants to have in their lifetime, money that works for you while you sleep.