“Common misconception is that it’s like gambling, it’s like red or black, but that’s not how the stock market works,” says Chief Investment Officer of Whelan Financial, Taylor Whelan.
Whelan is setting the record straight, and there are steps you can take to manage the risk.
“If you invest in a conservative and diversified way, the odds are in your favor,” says Whelan.
Picking an individual stock isn’t necessary.
Whelan says, “You can go out and buy something that’s an ETF or a mutual fund that spreads your dollar over many, many different companies and what that allows you to do is diversify. So, you’re not reliant on one single company to do well or lose all of your money.”
Fractional shares help buy expensive ETFs with smaller amounts, and as long as you’re not selling when things are down, you’re not losing anything.
“In a well-diversified investment, if the value goes down, you still have the same amount of shares in the mutual fund or ETF. So nothing has changed except there’s a different value there, so you don’t realize a loss unless you sell those investments,” says Whelan
Whelan goes on to say that you don’t need a lot of money to get started.
“The best thing today with access to apps, you can go online, open an account in five minutes, you can invest with as little as $1.”
Look for beginner-friendly investing platforms such as Robinhood, Fidelity and Charles Schwab.
“There’s apps out there that allow you, when you make payments at stores, it’ll round up your dollars and it’ll put it into an investment fund for you. It’s a way to automate investing, and I think that has been so key for younger individuals learning about investing sooner and are now more aware,” he says.
Some brokerage firms offer promotional perks, but when deciding which platform is best for you, experts say do your research on how they align with your values.
As for market volatility, a lot of times, when the market goes down, it’s the perfect opportunity to put cash into the market. There’s this concept of buying the dip.
Another myth: cash isn’t always king. Inflation shrinks the purchasing power of so-called mattress money.
There are high-yield savings accounts and CDs that might be a better option, but it’s always best to check with your financial advisor or banker.
For news updates, follow Vanessa Vasconcelos on Facebook, X and Instagram.
Copyright © 2025 KFSN-TV. All Rights Reserved.