💰Investing for beginners

This week, we're diving into two important investment strategies: the high-risk world of short selling and the long-term benefits of investing in low-cost index funds. We’re inching closer to the end of another year and the time to start investing was yesterday so don’t delay any longer - start building your wealth!

- Milan

IN THE STOCKS

• S&P 500 5,459.10 (1.11%)
• NASDAQ 17,357.88 (1.03%)
• Dow Jones 40,589.34 (1.64%)

*Stock data as of closing on July 26th.

THE MONEY BREAKDOWN

“Short Selling”

Today, let’s unpack the concept of short selling. Short selling is a strategy where an investor borrows shares of a stock they believe will decrease in price, sells them at the current price, and then aims to buy them back at a lower price to return to the lender, pocketing the difference. While it can be profitable, short selling is risky because if the stock price goes up instead of down, the potential losses are unlimited.

For those new to investing, it's generally wise to avoid short selling until you have a solid understanding of the market. Instead, focus on building a diversified portfolio with a mix of stocks, bonds, and ETFs. Start with investments in well-known, stable companies or index funds, and gradually increase your knowledge and experience. Remember, investing is a long-term game, and patience and research are key to success. Start today with our recommended brokers here.

MILAN’S HACK OF THE DAY

Invest In Index Funds

Let's talk about a powerful money hack: investing in low-cost index funds for long-term growth. Index funds are a type of mutual fund or ETF designed to replicate the performance of a specific market index, like the S&P 500. They offer broad market exposure, which means your investment is spread across many companies, reducing risk through diversification. Because these funds simply track an index, they have lower management fees compared to actively managed funds, making them a cost-effective choice for investors.

The benefits of investing in index funds are substantial. Over time, they have consistently outperformed many actively managed funds, thanks to their low fees and broad market exposure. Index funds are also a great option for those who prefer a "set it and forget it" approach, as they require minimal maintenance and decision-making. By regularly investing in index funds, you can build wealth steadily and take advantage of the long-term growth potential of the stock market. It's a smart, low-cost strategy that can help you achieve your financial goals. To learn more about investing, click here.

VIDEOS YOU MAY HAVE MISSED THIS WEEK

Here are the top videos you loved the most this week. Which one was your favorite?