You don't need thousands to start investing in the stock market. With just $100, you can take your first steps towards building wealth and achieving your financial goals. This guide will walk you through the process, providing tips and strategies for beginners.

1. Choose a Brokerage Account

The first step is to choose a brokerage account where you'll buy and sell your stocks. Many online brokerages cater to beginners with low minimum deposits and user-friendly platforms.

• Robinhood: Known for its commission-free trades and intuitive mobile app.
• Webull: Offers similar features to Robinhood with fractional shares and paper trading.
• Fidelity: Provides a robust platform with research tools and a wide selection of investment options.

Compare different brokerages, considering factors like fees, research tools, and customer support before making your choice.

2. Understand the Basics of Investing

Before you start investing, take some time to learn the fundamental concepts:

• Stocks: Represent ownership in a company. When you buy a stock, you become a shareholder.
• Market Capitalization: The total value of a company's outstanding shares.
• Dividends: Payments made to shareholders from a company's profits.
• Risk and Return: Higher risk investments generally offer the potential for higher returns, but also carry a greater chance of losses.

There are numerous online resources, books, and courses available to help you understand the basics of investing.

3. Start with a Fractional Share

Many brokerages allow you to buy fractions of shares, making it possible to invest even with small amounts of money. This way, you can diversify your portfolio by investing in multiple companies.

4. Choose Stocks Wisely

With your $100, consider investing in a few high-quality, well-established companies. Focus on businesses with strong fundamentals, consistent earnings growth, and a solid track record.

• Index Funds: A low-cost way to invest in a basket of stocks that track a specific market index, like the S&P 500.
• Dividend Stocks: Companies that pay regular dividends to their shareholders.
• Growth Stocks: Companies expected to experience rapid growth in earnings and revenue.

5. Diversify Your Portfolio

Don't put all your eggs in one basket. Diversify your portfolio by investing in a variety of stocks across different sectors and industries. This will help mitigate risk.

6. Invest for the Long Term

The stock market is volatile, and short-term fluctuations are normal. Investing for the long term allows you to ride out market cycles and benefit from the power of compounding.

7. Be Patient and Disciplined

Investing is a marathon, not a sprint. Avoid making impulsive decisions and stick to your investment plan. Review your portfolio regularly and make adjustments as needed.

Conclusion

Investing with $100 is a great starting point to build your financial future. By following these steps and remaining patient and disciplined, you can turn your initial investment into a solid foundation for long-term wealth creation. Remember, even small amounts can make a big difference over time.