For many of you picking your first stock can be a mind-boggling. Let's face it, professionals investment professionals are paid millions of dollars each year and even they have problems sometimes. But fear not, if you follow these steps you will be well on your way to making your first investment!

Steps To Take Before Picking Your Investment Stock

The first and most important thing to take a look at your finances and determine how much you would like to invest. As with all things the Stock Market is a learning experience and you will become much more knowledgeable over time. I recommend being cautious with the amount your first investment as you would be doing anything the first time. Once you have decided what your budget for your first investment is it is time to move on to picking a stock.

Now it is time to decide what type of stock you would like to invest in. Before we start taking a look at different types of stocks I would recommend buying a small amount of stock with a company that you are familiar with and whose products you use. You are more likely to know the business of and hear about relevant news that might affect the stock price with a company you are more familiar with. Also, would you really recommend buying your first stock from a company whose products you don't personally even endorse? Let's get onto the stocks!

Different Types of Investment Stocks

There are different types of investment stocks you can pick from and it all depends on your risk tolerance and your financial goals. A quick disclaimer though, I'll be giving shoutouts to some companies here, but this doesn't mean I'm recommending that you buy them right now. The next, very important step in investing is picking the right time to get in and out.  I cover these in depth in my Make Your Money Work For You MasterClass. Regardless, here are the different types of investment stocks you'll be dealing with on Wall Street:

How To Pick Your First Investment Stock - Different Types of Stocks

Blue Chip Stocks

These stocks are usually the safest investment. They are large companies with a long history of operating successfully. They are usually found on the Fortune 500 and include companies such as Walmart, Goldman Sachs, Coca Cola, Microsoft, Apple, and Exxon.

Dividend Stocks

Did you know you can earn cash flow from your stock investments?  Yes dividend stocks pay out a percentage of earnings to stockholders quarterly. You are looking for companies like UPS, General Motors, and Verizon with a long history of paying out quarterly dividends. They may not double in value each year but they will produce quarterly income off your investment.

Growth Stocks

Growth stocks are companies that are expanding the markets their products compete in. They can come from any industry but the most well known are often tech companies like Amazon, Facebook, Priceline, Uber, Tesla and Twitter. They are often riskier but the opportunities for growth are often attractive for those looking for gains on their stock value.

Value Stocks

These investment stocks are often the hardest to spot and are riskier because they require some financial analysis. You would be looking for companies that are undervalued compared to their peers in the market.  Some analysts have considered companies like American Airlines, Wells Fargo, and Expedia as value stocks over the last year. At Invest Diva, we have our own list of value stocks that I share in the Premium Investing Group, aka, the PIG.

Other Categories To Consider For Your First Investment Stock

Boys of Wall Street categorize investment stocks in many different ways.  These include:

• Income stocks
• Tech stocks
• Speculative stocks
• Cyclical stocks
• Defensive stocks

Now you know what types of stocks are available for your first investment. Remember that your first few stock investments are a learning experience and I encourage you to start small and enjoy the experience. If you would really like to learn about investing and how to make your money work for you, click here to reserve your seat for my next webinar.