Many people are really curious about how to start investing in stocks. Some might feel that investing is like gambling, but if you understand it properly and approach it correctly, it can be a truly powerful tool to grow your assets.

First, to briefly explain what stocks are, they are securities representing ownership in a company. When you buy stocks, you own a small part of that company, and if the company does well, you receive dividends and aim for capital gains. Owning one share of Samsung Electronics is like owning a tiny piece of the entire company.

Before learning how to start investing in stocks, you should first consider whether you're truly suited for it. Stocks are much more liquid than real estate, meaning you can sell them anytime you need. Also, investing in high-quality stocks over the long term can steadily grow your assets through the power of compound interest. Historically, the S&P 500 index has recorded an average annual return of about 10% since 1957. However, in the short term, volatility is high. For example, during the pandemic in March 2020, the S&P 500 dropped 34% in just one month, which can be psychologically challenging.

There are various ways to trade stocks. You can buy and sell individual stocks directly, diversify your investments through ETFs or funds, try fractional trading which is trending lately, or set up automatic monthly investments called dollar-cost averaging. For beginners, fractional trading or dollar-cost averaging are good options because they have lower entry barriers.

The first step to start investing in stocks is opening an account. Nowadays, you can open one in just a few minutes using a smartphone app. All you need is an ID card. The types of accounts include regular brokerage accounts, ISA, and CMA, but most beginners start with a standard brokerage account. Note that if you've recently opened an account with another financial institution, you need to wait 20 business days before opening a new account with a different securities firm. This is a regulation to prevent financial crimes. The account opening process is simple: choose a securities company → install the app → verify your identity → enter personal information → agree to terms → done. A tip is to stick with the same securities firm once you choose one, as they tend to be your go-to, so selecting a low-fee provider is advisable.

When selecting stocks, there are two main methods: technical analysis and fundamental analysis. Technical analysis predicts future price movements based on past price and volume patterns, while fundamental analysis evaluates a stock’s true value by examining financial statements, management performance, and industry trends.

Investment strategies also vary. Short-term trading aims for quick profits but carries higher risks. Long-term investing involves holding stocks for over five years, allowing the power of compound interest to significantly increase returns over time. Warren Buffett’s value investing is a prime example of this approach.

To reduce risk, diversification is essential. Don’t put all your money into a single stock; instead, mix stocks from different companies. Also, set stop-loss orders, periodically rebalance your portfolio, and consider investing gradually rather than all at once.

Here are the most important tips for starting in stocks: begin with small amounts to gain experience; avoid getting swept up in themes or hype and analyze objectively; develop a habit of reading economic news for 30 minutes daily and monitoring your favorite stocks; and record your investment reasons and outcomes for each trade to analyze your patterns and improve.

Ultimately, learning how to start investing in stocks is not about a few successes but about consistent learning and cautious decision-making. Like a marathon, take it slow and steady, and you’ll eventually reach your goal of long-term asset growth.