[00:00] and made multiple millions in the process. a low salary and a phone, what would I do? so today I'm gonna show you the step-by-step process
[00:16] By the end of this video, avoid all the beginner investing traps, to kickstart your investing journey.
[00:30] I'm not a financial advisor and this isn't financial advice. if I started again today.
[00:43] and I understand why, There are so many investing platforms out there, it can feel completely overwhelming.
[00:57] who say they don't know which ones are reliable, and they feel like they don't know enough Well, if I was starting again from scratch,
[01:10] First, I want to be covered by the FSCS, This means if the platform goes bust, Then, I look at the fees,
[01:25] Next, I'll make sure it offers the right account types, along with a good range of stocks, Now, don't worry if some of those terms don't make sense.
[01:40] And finally, it needs to be easy to use, that makes investing more complicated than it needs to be. such as the ones I'm showing on the screen right now.
[01:56] But if I had to choose just one as that's of course the point of this video, If you pick a different app, then that's fine.
[02:09] If you use that link, to get a free fractional share later on. (upbeat music)
[02:29] First is a valid photo ID like a passport Second is your national insurance number. and you'll find it just up on there.
[02:42] then check your P60, tax letters, You're looking for a number like this. and then a final letter.
[02:54] Something simple like a utility bill is fine. to take a quick selfie during verification. All set. Let's move on.
[03:10] and making the wrong decision could end up costing you Let me show you exactly what I mean. it gives you the option to either log in
[03:25] So let's just tap open account. I'm of course going to choose the United Kingdom Of course, just select where you're from.
[03:38] over a hundred countries globally, Asia Pacific, and parts of Latin America. you can choose from.
[03:51] I know it can seem a bit overwhelming, The first option here is called Invest. You can open as many of these accounts as you want
[04:07] You can have a regular checking account with Chase, But just bear in mind, you do have to pay tax on your profits.
[04:22] and the amount you have to pay varies but generally you'll pay 10 to 20% tax The second account on the list is a CFD account,
[04:35] I personally never touch day trading, It's also very high maintenance. Then we have the Stocks ISA,
[04:50] This is something called a tax advantaged account, and most countries have one such as a Roth IRA in America. and other assets and not have to pay tax on your profits.
[05:05] But because it's such a powerful account, there is a limit. 20K per tax year into an ISA. a lot of them get confused
[05:17] but that's not the case at all. a maximum of 20K in the account. The 20K limit is only on how much you can put
[05:30] or how large the account balance becomes. and still not have to pay tax on your profits. I'd highly recommend this account.
[05:44] where your money just earns interest Think of it like a savings account with a tax advantage. Now, this might sound like a safe and easy option,
[06:00] The interest rates on cash ISAs are typically a lot lower has returned over the last 10 years. However, historically,
[06:14] Don't worry if that all sounds a bit complicated. For now, all you need to know then I'd pick the Stocks and Shares ISA in a heartbeat.
[06:28] So that's what I'm gonna do. and what better way to attract customers And that's exactly what Trading 212 are currently doing.
[06:43] to start your investing journey. So in this step, I'm gonna be explaining to secure your free fractional share.
[06:57] is just a small piece of a company. like entering an email, and providing your national insurance number.
[07:10] And believe me, I do understand can feel a bit invasive and personal, for any regulated platform that offers financial services.
[07:25] They'll then get you to complete a mini quiz. of the risk and see how potentially losing money the value of your investments can decrease
[07:40] to make sure you understand that. that you can see here on the bottom right-hand corner It'll then take you to this page where you're greeted
[07:55] Personally, I always use the instant bank transfer So let's go ahead and click Instant bank transfer
[08:07] Now, you can put in as little as one pound. from the Trading 212 app and your bank. And once completed,
[08:20] It should then award you a free fractional share Just click on the three lines again on the bottom right
[08:32] and enter the code TILBURY, Let me know in the comments what you got. And you know what? I'll give the coolest ones an extra $100 each.
[08:49] because they're suddenly faced with thousands of choices commodities, and precious metals. but it really doesn't have to be complicated.
[09:02] I'd suggest you copy this simple strategy It's designed to grow steadily, survive recessions, It's called a three-fund portfolio,
[09:16] a very well-known community inspired by John Bogle, and a focus on diversification,
[09:28] it's perfect for the average investor who wants growth So by understanding this strategy, with one of the most reliable methods out there,
[09:41] So what's actually in a three-fund portfolio? Think of a fund like a big basket and buying the basket gives you some ownership
[09:57] is normally a US stock index fund, A good example of this is VUAG, The accumulation just means dividends
[10:12] And when you buy a share, all at the same time. The second fund is an international stock index fund,
[10:24] but instead covers companies outside the US. which helps provide stability and can help smooth out the ups and downs of the market.
[10:38] how do you split your money between the three funds? Well, that all depends on your risk tolerance. might go for a split like this:
[10:50] 35% US stocks, 25% international stocks, and 40% bonds. 45% US stocks, 30% international stocks, and 25% bonds.
[11:05] 55% US stocks, 35% international stocks, And a young aggressive investor might do this:
[11:18] 60% US stocks, 40% international stocks, and oh, no bonds. That's because younger people have longer
[11:30] Historically, with this kind of portfolio, Then you come out stronger than before. you could end up making a loss.
[11:44] it's actually riskier not to take calculated risks of investing portfolio fits your situation. and actually buy some stocks.
[12:00] but somewhat daunting moment for a lot of people. I was so happy and excited about the potential in some of the biggest companies in the world.
[12:14] and somehow losing my money. I'm currently on the home screen of the Trading 212 app
[12:26] my watch list, top winners, and so on. and instead hit this magnifying glass here, Once you've clicked that in the search bar at the top here,
[12:41] So for example, let's type in Tesla. This works exactly the same way
[12:53] So as you can see, if I type in Amazon... And if I type in Costco,
[13:07] in individual stocks like this. and then I'll show you how to set up a three-fund portfolio. And if you decide to buy them,
[13:21] as they're far more risky. Now, I'm feeling like a bit of Tesla. So let's head back to the search bar and type in Tesla.
[13:38] There we go. Let's open that up and then hit Buy. where you can see the overall price of the stock, and a few different order types like market, limit,
[13:52] so let's break it down. You're basically saying buy this now which means the order gets filled instantly,
[14:05] If the order doesn't get executed right away, So it will go through as soon as the market opens which lets you set the maximum price you're willing to pay.
[14:21] if the stock is under that price, but means it might not execute straight away. A stop order is mainly used when you want to buy a stock
[14:33] You choose a stock price, a market order is triggered to buy it. but when the stock price is reached,
[14:45] This gives you more control over the price you pay, If this is all getting a bit confusing, you don't need to worry about any of these too much.
[15:02] A small price discrepancies won't matter much So let's make sure we're on market order a full share is currently trading at $422.
[15:18] is it allows fractional investing. If you click this, you can change the investment Which one you decide to select
[15:31] So if you just want to invest 100 pounds, have it on value. or half a share exactly, So now let's keep it on value and invest 100 pounds.
[15:46] And then click Send buy order, and boom, just like that. We're now part owner of Tesla. Add that to your CV.
[16:00] is to keep it boring. but extremely effective three-fund portfolio click this pie icon to access your portfolio,
[16:16] Then click Create a custom pie. For our US stock market fund,
[16:28] let's search for S&P 500. There you go. This Vanguard one will do really nicely. Now, this fund allows you to invest in a tiny piece of 500
[16:41] like Apple, Amazon, and Coca-Cola. the Vanguard Total Stock Market Index Fund, VTSAX.
[16:53] across even more American companies, As lots of the top companies in the S&P 500 has started making it a bit unbalanced and reliant on those companies.
[17:08] or distribution in the brackets. back into the stock automatically. Now, let's tap Add to pie to select it,
[17:24] which is our international fund with the ticker IWDA and tap Add to pie. of companies from all around the world,
[17:37] Japan and Canada. Now, for our bond fund with the ticker IBTM This fund is like lending money to the US government.
[17:50] which helps keep your money safe and steady We can click Continue to go to the next step.
[18:02] of your money to each fund. As most of you will probably be on the younger side, Let's make the S&P 500 50%, the iShares world fund 40%,
[18:22] and the bond fund 10%, and click Next. you can open it up and then select AutoInvest And it also gives you this really cool value projection,
[18:37] based on historical averages. as investments can rise and fall, of how much you could make based on data-backed projections.
[18:51] I mean, say we invested 250 pound a month for 20 years. This says that you will only have invested 61,000 pound and your portfolio could be worth 262,000 pounds.
[19:05] and expand it to 500 pound a month, that could give you a portfolio worth of 525,000 pounds, It's worth having to play around with this
[19:19] with a relatively small amount invested per month. but knowing when to sell is just as important,
[19:33] The thing is, selling usually goes against our instincts. or it's just a paper loss. we hesitate because we don't wanna sell too soon
[19:46] who famously says his favorite holding period is forever, I like to joke that my Sell button is broken, I've made millions in the markets,
[20:02] for the wrong reasons can cost you just as much So if you're serious about investing, protect your money, and move into better opportunities.
[20:17] Reason one is if momentum is dying. First, there's fundamental value, based on real numbers like assets, revenue, and profits.
[20:32] when deciding if a stock is a good long-term investment. based on short-term supply and demand, It's les about what the company is actually worth
[20:48] This is where technical analysis comes into play. and historical data to predict A stock's price can temporarily rise or fall,
[21:01] but because traders are making moves which is driven by hype, trends and emotions. not because of solid fundamentals or technical patterns,
[21:16] But why does this matter? rather than real value, its price is fragile. You can spot the risky momentum stocks
[21:30] or Stocktwits to see how much online attention they have. it's probably not gonna last. but when the reality
[21:43] So how do you protect yourself from a similar situation? this is when you should consider selling a portion,
[21:56] Momentum always fades eventually. because they got caught up in the diamond hands culture, Don't let that be you.
[22:12] One of the best reasons to sell but because you have a better use for the capital. to something with even more potential.
[22:26] If you're about to buy a great property deal holding onto that stock that could drop in value The same applies if you're starting a business
[22:42] could mean missing your opportunity altogether. and reinvest in businesses I control On that note,
[22:56] then I'm actually running a completely free walking you through the number one business model to start with no previous experience or startup capital.
[23:11] where you can secure your free ticket. has shifted against you. completely alter a company's future.
[23:25] it's usually best to get out before things get worse. selling airlines during COVID. Or when he dropped Tesco's after an accounting scandal.
[23:42] Personally, I remember when smartphones came out Because of this, traditional printed media took a hit, Now, how can you tell if something like this is happening?
[23:59] I like to ask myself a few things to answer this question. to a disruptive competitor? like any fraud, mismanagement, or reckless expansion?
[24:14] due to technology or industry trends? If the fundamentals change, Being willing to cut ties when the market tells you to
[24:29] So let's say you've decided to sell a stock Well, you'll need to go onto the Portfolio tab then just tap on the stock you'd like to sell.
[24:44] and then press the big Sell button It then gives you all of these different options like market, limit, stop, and stop limit.
[24:57] just in reverse, as you're selling and not buying. but if you wanna experiment with the others, you want to sell,
[25:13] this won't happen immediately if the market is closed. and hardly ever sell my stocks,
[25:26] As the old saying goes, because time is the only thing you can't fake. opinions, or emotions.
[25:41] The people who win aren't the smartest, They're the ones who stay invested. Stop chasing hype and trust a simple system long enough
[25:55] So if you earn money, invest regularly, You're already using the same strategy If you wanna find out why AI is changing how I invest,
[26:09] Make sure to subscribe I'll see you over there.