I'm a new investor and this is super scary
We get it. Investing is intimidating when you're new, and so many of the websites out there that say they'll help you are totally bogged down in jargon. At Hatch, we love new investors and want to help folks get comfortable with investing so that you can build the wealth you deserve.
Invest in what you know
While we can't give advice about what to invest in (although we do have a free 10 day Getting Started Course). The great thing about self-directed investing is that you can learn by doing, starting with small amounts, and growing your hard-earned money over time.
We've heard of a few new investors who take $100 or $200 and invest it in a company they know well (like Apple or Tesla). They use the knowledge they've built through being a customer to make an informed decision about the company's future growth. A few hundred dollars is enough skin in the game to care about (and therefore learn) what impacts the share price over time, but not enough to worry about making a loss. That's a hands-on share market education for the price of a coffee.
It may sound way to simple for the complex world of investing, but as this 5 minute video explains, some of the world's most successful investors rely on a strategy of buying businesses they know:
There are so many shares available on Hatch, how do I choose?
This is the age-old question, aye? How do I choose... Honestly, everyone is different, and there's no one-size-fits-all answer. One thing we've heard is helpful for new investors is to start with what you know. Maybe you work in healthcare and see how innovations will grow the industry, or maybe you see a sustainable future and want to invest in companies pursuing green solutions. Life experience gives you more expertise than you probably realise for determining whether different industries and trends are a good long term investment. In Hatch, you can browse shares by industries and trends to see what companies and exchange traded funds are at the forefront of the fields you see growing in the future.
I want to do some research, where do I start?
We usually recommend folks start their research by reading about different investment strategies like 'buy and hold', 'diversification' and 'dollar-cost averaging' to build an understanding of good investment behaviour. We've also written a blog on this topic that might be helpful.
For a quick overview, watch a video by the Motley Fool that covers some principles of picking individual companies:
Some other Hatch blog posts that are handy for newer investors:
What kind of investor are you?
An overview of the US share markets
The 5 most common mistakes investors make
What you should know about your tax obligations
10 investing books you should be reading
We also love these sites for their plain english approach to investing advice and information:
These guides to investing from The Deep Dish and the FMA are two of our favourite investing overviews for beginners:
The Deep Dish: Beginner's Guide to Becoming a Badass Investor
Of course, our team is here to help however we can, so chat us up if you have any questions as you get started!