Is it worth buying your first share, even if it won’t be profitable?
I think it’s fair to say that sometimes in life, the fear of doing something is a lot worse than actually doing it. I also think that this is especially true when it comes to the idea of investing in the stock market. The fear of making your first trade can be crippling for some, as they worry about which shares to invest in, whether they are investing with too little money and more. This fear eventually leads to inaction and they fail to make their first trade altogether.
This got me to thinking, is it really that important that you make a profit on your first ever trade? Or, is the experience of actually buying a share for the first time much more valuable than any potential profits you might make?
Personally, I think that making the leap and actually buying your first share is half the battle for many newbie investors, so the best thing to do is to bite the bullet and make your first trade. Of course, you will want to do as much research as possible before doing so, to ensure that you give yourself the best possible chance of making money from investing your hard-earned cash, but if you never trade because you are intimidated to do so, then you are never going to make any profit from investing in your lifetime. By making your first trade, you will eliminate your first-time trader fear and you will finally begin your journey as an investor in the stock market. This journey will prove to be a real learning curve and you will likely make mistakes, but you will at least be on your way. You will gain experience in how the share buying process works, and you will also understand the trading costs involved with buying and selling shares too.
Of course, there are things that you can do to lessen the costs involved with trading shares for the first time, like taking advantage of free trade offers for new investors, for example. You could also start out by investing in ETFs or other funds, as the costs involved to invest in these types of funds is often less than it would be to buy and sell individual shares.
As we said at the start of this post, fear is probably the biggest barrier for most people when it comes to investing. So, rather than succumb to the fear of investing for the very first time, it might make sense to just open a dealing account, spend a little money, and go ahead and make your first trade. This way you will overcome your fear of investing and you will then be well placed to start building a portfolio that may serve you well for a lifetime.
It’s probably safe to say that there aren’t many investors out there who has never lost money on a trade. There are also a lot of investors out there, however, who have made a lot more money than they have lost. So don’t let a fear of the unknown cripple you on your journey toward becoming a successful investor.
What do you think? Is it vital that you make a profit on your first trade, or is it more important to just make your first trade?