How to invest in stocks: Learn the basics to help you get started

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  Published in Stocks and Investing on Friday, September 12th 2025 at 15:00 GMT by Fox 11 News

How to Invest in Stocks – A Quick Guide (Based on Fox 11 Online’s “How to Invest in Stocks” Article)

Fox 11 Online – Tulsa, Oklahoma
(Original article published 2023, updated 2024)

Why the stock market matters to everyday people

The Fox 11 article opens with the point that the stock market isn’t just for Wall Street CEOs or seasoned traders; it’s a powerful tool for ordinary households to build wealth over time. By investing in shares of public companies, individuals can tap into the growth of businesses ranging from local startups to global giants. The piece notes that while the market can swing wildly, long‑term investors historically have seen a solid average return of about 7–8 % per year after adjusting for inflation.

Starting with the basics: what is a stock?

A clear, concise definition follows: a stock is a “share” of ownership in a company. When you buy a share, you own a tiny piece of that business and can benefit from its profits (through dividends) and from any increase in the share price. Stocks are bought and sold on regulated exchanges—most commonly the New York Stock Exchange (NYSE) or the Nasdaq.

Setting up a brokerage account

The article walks readers through the most common ways to open an account:

1. Full‑service brokerages (e.g., Merrill Edge, Morgan Stanley) that offer personal advice but often charge higher commissions.
2. Discount brokerages (e.g., Charles Schwab, Fidelity, E*TRADE) that let you trade online with lower or zero fees.
3. Robo‑advisors (e.g., Betterment, Wealthfront) that automate portfolio construction based on your risk tolerance.

Fox 11 points out that many brokers now offer free trades on U.S. stocks, making the barrier to entry lower than it once was. The article also explains the importance of reading the fine print—especially about hidden fees for account maintenance, margin lending, and inactivity.

Picking your first investment

The piece emphasizes that many people start by investing in exchange‑traded funds (ETFs) rather than individual stocks. ETFs are baskets of shares that track a particular index, sector, or commodity. For example, the S&P 500 ETF (SPY) holds roughly 500 of the largest U.S. companies. This strategy provides instant diversification, reducing the risk that comes with betting on a single company.

If you do decide to pick a single stock, the article recommends:

• Fundamental analysis: Look at earnings, revenue growth, debt levels, and competitive advantage.
• Technical analysis: Study price charts for trends and support levels.
• News and sentiment: Read earnings releases, analyst reports, and watch for macroeconomic signals.

The article includes a helpful graphic comparing “value” versus “growth” stocks and explains how investors might tilt their portfolios based on personal goals and risk appetite.

Diversification and risk management

Fox 11 stresses that diversification isn’t just about owning many stocks. It also involves:

• Spreading across geographic regions (U.S., Europe, Asia).
• Balancing industries (technology, healthcare, consumer goods, utilities).
• Mixing asset classes—adding bonds, real‑estate investment trusts (REITs), and even commodities can further cushion against volatility.

The article cautions against putting too much into high‑growth, high‑volatility sectors like biotech or crypto, especially if you’re near retirement or have a low risk tolerance. It also introduces the concept of asset allocation and suggests using automated tools or “target‑date” funds to maintain an appropriate mix as your life stage changes.

Dollar‑cost averaging (DCA) and systematic investing

One of the most practical strategies highlighted is dollar‑cost averaging. By investing a fixed dollar amount on a regular schedule—weekly, monthly, or quarterly—you buy more shares when prices are low and fewer when prices are high. Over time, this reduces the average cost per share and can smooth out the emotional roller‑coaster of market timing.

Fox 11 also covers how many brokerage platforms now allow you to set up automatic contributions from your bank account or paycheck, making it easier to stay disciplined.

Tax implications

The article explains the difference between capital gains (profits from selling a share) and dividends (income from owning a share). Short‑term gains (held less than a year) are taxed at ordinary income rates, while long‑term gains enjoy a lower rate. Qualified dividends also benefit from preferential treatment. The piece recommends keeping a “tax‑loss harvesting” strategy in mind—selling losing positions to offset gains—and suggests consulting a tax professional for personalized advice.

Common pitfalls and how to avoid them

Fox 11 lists several mistakes new investors often make:

1. Chasing hype: Ignoring due diligence and buying into “hot” stocks because everyone else is.
2. Timing the market: Trying to predict highs and lows, which is statistically futile.
3. Overtrading: High transaction costs erode returns.
4. Ignoring fees: Actively managed funds often charge 1–2 % in expense ratios, wiping out significant gains over the long haul.

The article advises staying focused on long‑term goals, using a stop‑loss strategy judiciously, and regularly reviewing your portfolio to ensure it still aligns with your objectives.

Resources and next steps

The Fox 11 piece ends by linking to several helpful resources:

• A local “Investing 101” webinar hosted by the Tulsa Chamber of Commerce.
• The U.S. Securities and Exchange Commission’s “Investor.gov” site for regulatory information.
• A curated list of books such as The Little Book of Common Sense Investing (John C. Bogle) and One Up on Wall Street (Peter L. Brown).
• A local finance‑blog community where residents share insights on local stock picks and market trends.

Readers are encouraged to start small—perhaps with a $1,000 ETF purchase—track their progress, and gradually expand as they become comfortable with market dynamics.

Key Takeaways

1. Stocks are a powerful wealth‑building tool for anyone willing to commit to a long‑term strategy.
2. Brokerage accounts are the gateway—choose a platform that matches your budget, tech comfort, and desire for guidance.
3. ETFs provide instant diversification and are a solid starting point for beginners.
4. Fundamental and technical analysis help refine choices, but don’t replace a broader, disciplined approach.
5. Diversification, dollar‑cost averaging, and tax‑efficient strategies help protect against volatility and preserve gains.
6. Beware of common pitfalls such as overtrading, market timing, and high fees.

By following these principles, the Fox 11 article reassures readers that investing in stocks is not just for the elite—it’s a practical, accessible path to building a more secure financial future.