WHY INVESTING IN STOCKS MIGHT BE THE BEST DECISION OF YOUR LIFE

In this video lets talk about the advantages to invest in stocks! You can start 2020!

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Investing is a way to set aside money while you are busy with life and have that money work for you so that you can fully reap the rewards of your labor in the future. Investing is a means to a happier ending. Legendary investor Warren Buffett defines investing as "… the process of laying out money now to receive more money in the future."
The goal of investing is to put your money to work in one or more types of investment vehicles in the hopes of growing your money over time.

Let's say that you have $1,000 set aside, and you're ready to enter the world of investing. Or maybe you only have $10 extra a week, and you'd like to get into investing. In this article, we'll walk you through getting started as an investor and show you how to maximize your returns while minimizing your costs.

KEY TAKEAWAYS
Investing is defined as the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.
Unlike consuming, investing earmarks money for the future, hoping that it will grow over time.
Investing, however, also comes with the risk for losses.
Investing in the stock market is the most common way for beginners to gain investment experience.

Diversify and Reduce Risks
Diversification is considered to be the only free lunch in investing. In a nutshell, by investing in a range of assets, you reduce the risk of one investment's performance severely hurting the return of your overall investment. You could think of it as financial jargon for "don't put all of your eggs in one basket."

In terms of diversification, the greatest amount of difficulty in doing this will come from investments in stocks. As mentioned earlier, the costs of investing in a large number of stocks could be detrimental to the portfolio. With a $1,000 deposit, it is nearly impossible to have a well-diversified portfolio, so be aware that you may need to invest in one or two companies (at the most) to begin with. This will increase your risk.

This is where the major benefit of mutual funds or exchange-traded funds (ETFs) come into focus. Both types of securities tend to have a large number of stocks and other investments within the fund, which makes them more diversified than a single stock.

The Bottom Line
It is possible to invest if you are just starting out with a small amount of money. It's more complicated than just selecting the right investment (a feat that is difficult enough in itself) and you have to be aware of the restrictions that you face as a new investor.

You'll have to do your homework to find the minimum deposit requirements and then compare the commissions to other brokers. Chances are, you won't be able to cost-effectively buy individual stocks and still be diversified with a small amount of money. You will also need to make a choice on which broker you would like to open an account with.
Description Source: Investopedia