An important disclaimer: I am not a financial advisor and none of the below should be construed as financial advice. The below details tactics that have worked for me, but you should not expect to see similar success. Stock market investing is SUPER risky, only choose strategies that work for your personal goals and circumstances, and when you need it, seek advice from an accredited financial advisor.

Also, full disclosure: I am a proud affiliate, meaning if you click a link and make a purchase, I may earn a commission at no extra cost to you. My recommendations are based on deep experience with and knowledge of the products I mention and I recommend products only when they are genuinely helpful and useful, not because of the small commissions I may receive. Please don’t spend any money on products I recommend unless you genuinely believe they will help you achieve your goals.

My stock market investing journey didn’t start with a bang.

I remember what it was like when I started my first 401K. There were so many options and I had NO idea what I was doing. I asked a supervisor for advice, but he couldn’t provide any.

Confused and overwhelmed, I did my best to make smart investing choices, but I couldn’t be sure. 

After that day, I committed to learning what I could about investing so that I could be better prepared in the future.

It’s been over a decade since then, and while I’m continuously advancing my knowledge of stock market investing, I’ve come a long way.

In this article, I’m going to tell you how I learned to make smarter investing choices, and how I invest my money today to add FIRE to my finances.

How I Advanced My Knowledge of Stock Market Investing

The Early Days

I’ll be honest, I didn’t feel like I truly understood stock market investing for quite some time.

First, I spoke with coworkers, trying to learn what they knew. I discovered that they knew surprisingly little.

Then, I experimented with my own 401K investments. Thankfully, my initial retirement investing options were good, so I didn’t make “bad” choices. However, I could have made better decisions with more preparation.

I watched the performance of my investments over time and began to pick up on trends. I learned how to use the charts and they became a valuable tool.

The Simulator

After a while, I decided to experiment with stock market investing outside of my retirement account. However, I didn’t realize that there are vastly more options with a standard brokerage account.

I did some research and felt totally unprepared to open a brokerage account. During my research, however, I learned that there are stock market simulators that allow you to practice investing with fake money.

The stock market simulator follows real market conditions, and I knew it was exactly what I needed. I signed up for an account, invested my fake money, and watched as my balances rose and fell over time.

The Brokerage Account

It wasn’t until about a year later that I thought I’d finally learned what I needed to know before opening my brokerage account.

Even then, I stumbled and struggled to start my initial investments. I didn’t understand why certain mutual funds had a minimum investment of $1 million plus, or some of the other nuances.

I only had a few thousand to spare, so I stumbled across a couple of mutual funds and invested my first funds. I was thrilled and excited to see my account grow over time.

Better Stock Market Investing Choices

In the long run, my mutual funds performed poorly, but it didn’t matter because they provided the education I needed.

Meanwhile, I started reading books like The Bogleheads’ Guide to Investing and A Beginner’s Guide to the Stock Market, which quickly advanced my knowledge about stock market investing.

I’d also started a new job along the way, meeting a new coworker who was incredibly passionate about stock market investing. He openly shared his strategies and ideas, and I’m grateful for his support.

Within a few years of starting my brokerage account, I started noticing a (mostly) upward trend with my various investments. Some of my stocks declined in value over time, but overall, my portfolio was net positive.

How I Invest My Money Today

My stock market investing portfolio uses what I consider a healthy blend between index funds and individual company investments. I don’t invest in bonds, and I no longer invest in mutual funds outside of index funds either.

The vast majority of my portfolio is built up of index funds, and I expect it will remain that way for years to come.

My portfolio is simple, but I like it that way. In fact, I think a simpler portfolio is better because it’s easier to understand.

I’ve selected a range of companies to invest in for long-term growth, but the rest is simply focused on the index. It works for me and it’s provided a sustainable growth that I’m proud of.

Lessons Learned Along My Stock Market Investing Journey

I’ve made my share of mistakes throughout my stock market investing journey, but I don’t regret them. Those mistakes proved to be essential to advance my knowledge.

However, I also didn’t lose more money than I was willing to lose, and in the long run, I’ve experienced overall net gains.

While I will likely always invest in the stock market, it is risky, which is why I never put more into my brokerage account than I can afford to lose.

If you’re committed to investing in the stock market, then I encourage you to focus on investing your time and energy into building your knowledge first. The stock market can feel incredibly overwhelming, but it doesn’t have to be a big bad wolf. 

Read a few books, take some courses, speak with a trusted advisor, and experiment with your own investments (but don’t spend more than you can afford to lose!). I consider my knowledge of stock market investing to be one of my most valuable assets.

When you know what you’re doing, you can make better decisions, and feel more confident about your financial future. 

That peace of mind alone is worth it.

Conclusion

Have questions? Curious to know about which companies I invest in? If so, let me know in the comments below.

Best of luck to you on your stock market investing journey.

Think stock market investing will help you FIRE Your Life? Check out the posts page for more ways you can FIRE Your Career and achieve financial freedom.

FIRE Your Career: Achieve Financial Freedom Through Your Career & Spend MORE Time Doing What You Love.

Resources I mention in this article:

Stock Market Simulator

The Bogleheads’ Guide to Investing (a great intro to investing book)

A Beginner’s Guide to the Stock Market (a more detailed investing book)

Tools I frequently recommend:

Strengths Finder (book to help you uncover your innate strengths, includes a free personality quiz)

ClickUp (my recommended goal-tracking and project-management tool)