How to invest for beginners step by step guide

How To Invest In Stocks For Beginners 🇨🇦

This how to guide is written for Canadians that are beginner investors. If you’ve never bought a stock before then this is the step-by-step guide that will walk you through the process.

Get 2 Free Stocks With Wealthsimple Trade

Investing For Beginners:

Step 1 Signup For An Investing Account

Signup for Wealth Simple Trade and if you use my affiliate link here or button below you’ll get 2 free stocks!

Get 2 Free Stocks With Wealthsimple Trade

Even if you do not use my link I still recommend using Wealth Simple Trade for beginners to learn how to invest.

Step 2 Open A TFSA

Next, you’re going to open a self-directed TFSA account. This allows you to invest without paying taxes on any money you make.

Which is a huge deal.

A basic TFSA strategy is to max it out as soon as you can, and don’t withdraw from your TFSA until as long as possible. Because you want your money inside the TFSA to grow for as long as possible because it’s tax free investing.

Note there is a maximum amount of money that we’re allowed to contribute to the TFSA. Find yours here.

Now Wealth Simple Trade will walk you through the account setup process and it will take a few days for them to verify your identify after you submit to them your documents.

Step 3 Fund Your Account

Setup AUTOMATIC payments to your new TFSA account. Even if you just start with $50 a month that’s better than nothing!

Of course I’d love you to save at least 30% of your salary, but baby steps come first.

Once your account is funded it will take a few days for the money to completely transfer over to your new investing account.

Now you’re ready to start investing!

Step 4 Buy Your First Investment

Now you’re going to search for VFV. This is what Warren Buffet recommends everyone to do is to just buy and hold VFV.

That’s because this is a low cost index fund and every dollar you spend on VFV gets split up to give you a bit of ownership in the top 500 companies in the USA stock market.

All you have to do now is purchase the number of shares that you desire. I usually place market orders because I don’t try to time the markets. I just buy and hold my investments for the long run.

And that’s it. Now it’s important to note that Wealth Simple Trade does not automatically buy these stocks for you. So I recommend to open your app at the beginning of every month and buy as many VFV shares as possible.

Step 5 Stay Investing

While investing is actually quite simple being successful at investing is quite hard. This is because 99% of investors do the following:

  1. Selling your investments before you retire
  2. Trying to time the market highs and lows
  3. Buying individual stocks (typically creates too much risk)
  4. High management fees

To avoid these pitfalls and to become a successful investor you’ll need to:

  1. Buy funds with lots of companies in it
  2. Buy funds that are low in management fees
  3. Buy on a consistent basis (e.g. Monthly)
  4. Hold your investments (never sell until you retire)
how to invest in stocks for beginners

How To Invest In Stocks For Beginners (Canadian Edition)

Total Time: 15 minutes

Step 1 Signup For An Investing Account

Signup for Wealth Simple Trade and if you use my affiliate link here or button below you’ll get 2 free stocks!Even if you do not use my link I still recommend using Wealth Simple Trade for beginners to learn how to invest.

Step 2 Open A TFSA

Next, you’re going to open a self-directed TFSA account. This allows you to invest without paying taxes on any money you make.

Which is a huge deal.

A basic TFSA strategy is to max it out as soon as you can, and don’t withdraw from your TFSA until as long as possible. Because you want your money inside the TFSA to grow for as long as possible because it’s tax free investing.

Note there is a maximum amount of money that we’re allowed to contribute to the TFSA. Find yours here.
Now Wealth Simple Trade will walk you through the account setup process and it will take a few days for them to verify your identify after you submit to them your documents.

Step 3 Fund Your Account

Setup AUTOMATIC payments to your new TFSA account. Even if you just start with $50 a month that’s better than nothing!

Of course I’d love you to save at least 30% of your salary, but baby steps come first.

All you have to do now is purchase the number of shares that you desire. I usually place market orders because I don’t try to time the markets. I just buy and hold my investments for the long run.
And that’s it. Now it’s important to note that Wealth Simple Trade does not automatically buy these stocks for you. So I recommend to open your app at the beginning of every month and buy as many VFV shares as possible.

Step 4 Buy Your First Investment

Now you’re going to search for VFV. This is what Warren Buffet recommends everyone to do is to just buy and hold VFV.

That’s because this is a low cost index fund and every dollar you spend on VFV gets split up to give you a bit of ownership in the top 500 companies in the USA stock market.

All you have to do now is purchase the number of shares that you desire. I usually place market orders because I don’t try to time the markets. I just buy and hold my investments for the long run.
And that’s it.

Now it’s important to note that Wealth Simple Trade does not automatically buy these stocks for you. So I recommend to open your app at the beginning of every month and buy as many VFV shares as possible.

Step 5 Stay Investing

While investing is actually quite simple being successful at investing is quite hard. To avoid common pitfalls make sure you; never sell your investments, buy funds with extremely low fees, buy every month, hold funds that have hundreds of companies in the fund.