Best Stocks for Beginners

Alexander Boulden

Posted May 22, 2024

The stock market wasn’t always as accessible as it is today.

And with so many stocks and brokerages out there, it’s hard to know where to start, especially if you’re a beginner and don’t have a lot of capital.

But not to worry! The experts here at Wealth Daily have got you covered.

Let’s look at some strategies you can use if you don’t have a lot of spare money but want to get into the investing game.

We’ll even look at some of the best stocks for beginners to buy.

Let’s get into it.

First, we’ve got to understand the foundation of the stock market because, as I said, it wasn’t always this ubiquitous.

The New York Stock Exchange was founded on May 17, 1792, after 24 stockbrokers and merchants gathered under a buttonwood tree outside 68 Wall Street and signed the Buttonwood Agreement. The agreement sought to stabilize the securities market after the Panic of 1792, which was a two-month financial credit crisis during which prices of U.S. debt securities and bank stocks fell, eventually resulting in a bank run. The agreement proposed the creation of a system in which brokers and merchants would trade only with each other and for a set commission per transaction. They created a membership-only exchange, which turned into what we know as Wall Street today.

But you really had to be a businessman, be wealthy, or know the right people in order to trade.

Fast-forward to today and, in reality, not much has changed. It still takes money to make money in the market, and if you’re a savvy businessman, you have a distinct advantage over most investors.

That’s not to say you shouldn’t invest; just know there are forces in the market that make it harder for the little guy.

But we like a good challenge.

First, you’ll want to start by choosing a brokerage.

For beginners, I recommend Robinhood. It couldn’t be easier to use the platform

You see, today the majority of stock trading occurs electronically through computer networks. Stock exchanges have fully embraced electronic trading platforms, and investors can execute trades using online brokerage accounts from anywhere with an internet connection.

Now you can trade from anywhere in the world using just your smartphone.

Personally, I think Robinhood offers the most intuitive service for beginners.

When Robinhood launched its mobile app, it offered something other brokerages didn’t: commission-free trading. Talk about taking from the rich and giving to the poor! This move disrupted the entire industry, as traditional brokerages like Fidelity and Charles Schwab were still charging transaction fees for each and every trade.

Robinhood’s model appeals to younger, tech-savvy investors who are looking for a more cost-effective way to invest in the stock market.

For me, Robinhood is an app that’s the perfect combination of easy to use and easy to understand. I’ve tried a lot of platforms, including TD Ameritrade’s Thinkorswim, but that was just way too complicated for me.

Not to mention, Robinhood has a plethora of incentives for all types of investors. Currently, it offers 1.5% APY interest on your uninvested brokerage cash. And if you subscribe to Robinhood Gold for just $5 a month, you’ll get 5% APY with no limit!

That’s much better than your standard checking account. So you can let your money grow with interest while you decide what to invest in.

Now that we’ve got the brokerage covered, let’s talk about strategy before we look at some stocks.

Fractional Shares

You might look at some stocks and think they’re too expensive, but that’s the beauty of fractional shares. Want to buy Telsa but don’t have $180 to spend? Not a problem. You can buy Tesla with $1 and keep adding to your position over time.

Dollar-Cost Averaging

You may have heard this term before, and it couldn’t be simpler. When you buy a stock, your average price should be displayed in your brokerage. If the stock goes down and you buy more shares, you lower your cost average. This puts you in a stronger position if the stock goes up.


Many companies will pay you monthly or quarterly just to hold shares of their company. You have to assume the risk of holding the stock, but you get cash deposited into your brokerage account whenever the company issues a dividend. You can also choose to just reinvest the dividends in the company, giving you a stronger position.

Now that we’ve covered some beginner investing strategies, let’s look at the best stocks for beginners to buy.

I’ll start with buying what you know.

I’ll take a wild guess and say you’ve probably bought a Coca-Cola product this year. You’ve probably spent well over $60 on its products in your life. And that’s close to the share price of my first pick.

Coca-Cola (NYSE: KO)

Investing in Coca-Cola is really a no-brainer for beginners. You see the products everywhere and you buy them all the time. The company itself offers a blend of stability and growth through dividends. As a globally recognized brand with a diverse product portfolio, Coca-Cola has consistently demonstrated resilience and adaptability in various market conditions. The company’s robust distribution network and strong marketing strategies have cemented its position as a market leader in the beverage industry. Additionally, Coca-Cola’s commitment to innovation, sustainability, and expanding its product offerings, including healthier beverage options, positions it well for future growth. Investors can also benefit from Coca-Cola’s long history of dividend payments, providing a reliable income stream.


My second pick is the SPDR S&P 500 ETF, which provides a straightforward and effective way to gain exposure to the broad U.S. stock market. If you’re not familiar, ETF stands for “exchange-traded fund,” which acts like a basket of stocks. This ETF mirrors the performance of the S&P 500 Index, which includes 500 of the largest and most influential companies across various sectors. By investing in SPY, investors benefit from instant diversification, reducing the risk associated with individual stocks. SPY offers the potential for long-term capital appreciation, as the S&P 500 has historically delivered strong returns. You also get an average of the dividends for the companies in the ETF.

JPMorgan Equity Premium Income ETF (NYSE: JEPI)

Finally, the JPMorgan Equity Premium Income ETF offers a unique opportunity for those seeking both income generation and equity exposure. This ETF aims to deliver monthly income by employing an options overlay strategy, which involves writing covered calls on a portion of the portfolio to generate premiums. That might be a little too complex for beginners, but just know that JEPI focuses on high-quality, low-volatility stocks, providing a balance between growth potential and risk management. JEPI’s diversified holdings help mitigate individual stock risks. Overall, JEPI is a compelling choice for investors looking to supplement their income while maintaining exposure to the equity markets.

And there you have it.

If you want more beginner-friendly stock picks, we’ve created an entire beginner-friendly portfolio just for you.

Just sign up for a risk-free trial to R.I.C.H. Report to get access today.

Stay frosty,

Alexander Boulden
Editor, Wealth Daily

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After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing.

Alexander is the investment director of Insider Stakeout — a weekly investment advisory service dedicated to tracking the smartest money on the planet so that his readers can achieve life-altering, market-beating returns. He also serves at the managing editor for R.I.C.H. Report, a comprehensive service that uses the highest-quality investment research and strategies that guides its members in growing their wealth on top of preserving it.

Check out his editor’s page here.

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