How to Invest: The Beginning

Welcome to Fulton Street Partners

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If you’re reading this, you’re already ahead of the game.

 

You’ve taken the first and most important step toward building a more secure financial future: you’ve decided to learn. And that matters. Because at Fulton Street Partners, we believe investing isn’t reserved for the wealthy, the Ivy League, or people who stare at charts all day. It’s for anyone willing to ask questions, stay curious, and take control of their money.

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Whether you’re just opening your first brokerage account or still deciding if investing is right for you, this guide is designed to walk you through the fundamentals, one clear step at a time.

 

Let’s get started.

 

 

Why Should You Invest?

 

Let’s begin with the big question: why invest at all?

 

Here’s the answer in one sentence: Investing helps your money grow faster than it would in a savings account.

 

A basic savings account might earn you 0.5% interest — sometimes less. But inflation (the rise in prices over time) averages about 2–3% per year. That means if your money isn’t growing, it’s actually losing value.

 

Investing helps you beat inflation by putting your money into assets — like stocks, ETFs, and funds — that can grow in value over time.

 

Here are a few reasons why people invest:

 

• To build long-term wealth

• To retire comfortably

• To fund future goals (a home, a business, a dream trip)

• To make their money work for them

 

The earlier you start, the more time you give your money to grow. That’s the power of compound growth — small amounts invested consistently can lead to major gains over time.

 

 

How Do You Start Investing?

 

You don’t need thousands of dollars to begin — in fact, many platforms let you start with as little as $5 or $10. Here’s what you need to do:

 

 

1. Choose a Brokerage Account

 

This is your gateway to investing. Think of it as your investment bank account. Some trusted options include:

 

• Fidelity

• Charles Schwab

• Robinhood

• E*TRADE

• Public or SoFi (for a more mobile-first experience)

 

Choose one with no account minimums, low fees, and beginner-friendly tools.

 

 

2. Fund Your Account

 

Link your bank account and deposit the amount you’re comfortable starting with. It doesn’t need to be a lot — the key is just to start.

 

 

3. Decide What to Invest In

 

Here are your main options:

 

• Stocks: Shares of individual companies (like Apple or Nike).

• ETFs: Baskets of stocks that track a theme or index (like the S&P 500).

• Mutual Funds: Professionally managed groups of stocks (less common for beginners).

• Index Funds: A type of ETF or mutual fund that mimics the performance of a specific index (often lower risk and fees).

 

We recommend beginners start with broad ETFs or index funds. They’re diversified, low-cost, and require no guesswork.

 

 

4. Think Long-Term

 

Investing isn’t about getting rich overnight. It’s about building wealth slowly and steadily. That’s why we encourage a strategy of buying and holding — and ignoring the daily noise of the market.

 

 

Common Questions New Investors Ask

 

 

What if I lose money?

 

Short-term losses are part of investing. Markets move up and down all the time. The goal is to invest consistently and stay focused on the long term — years, not days.

 

 

How much should I invest?

 

Only what you can afford to keep invested for at least 3–5 years. You don’t need to invest everything — just enough to start building momentum.

 

 

Do I need to pick individual stocks?

 

Not at all. In fact, many of the world’s best investors suggest starting with index funds and ETFs to spread out risk and build a strong foundation.

 

 

Basic Investing Terms You Should Know

 

Here’s a shortlist of foundational terms to help you feel more confident:

 

• Stock: A piece of ownership in a company.

• ETF (Exchange-Traded Fund): A fund that holds multiple stocks, trades like a stock, and offers built-in diversification.

• Index Fund: A type of ETF or mutual fund that tracks a specific market index (like the S&P 500).

• Portfolio: The total collection of your investments.

• Diversification: Spreading money across different assets to reduce risk.

• Dividend: A portion of company profits paid out to shareholders.

• Market Cap: The total value of a company’s stock; used to categorize companies by size (small-cap, mid-cap, large-cap).

• Volatility: How much the price of an asset fluctuates — more volatility means more price swings.

 

 

The Most Important Investing Principle: Stay Consistent

 

More than anything else, consistency is what separates good investors from great ones.

 

Whether you’re investing $10 a week or $1,000 a month, sticking to a plan and investing regularly — regardless of market conditions — can produce powerful long-term results. This is known as dollar-cost averaging, and it’s one of the most beginner-friendly strategies out there.

 

 

Start Learning. Start Building. Start Now.

 

You don’t need to know everything to get started. You just need to be willing to learn — and that’s what we’re here for.

 

At Fulton Street Partners, our mission is to help new investors grow through clear education, practical tools, and honest market insight. We’ll never talk over your head, push hype, or promise shortcuts. What we do offer is a growing community of curious, motivated investors just like you — people who want to build something smarter for their future.

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For an in-depth analysis of investing for beginners, join Premium. 

 

So let’s begin this journey together.