New Canadian Investor

Hello! I am wondering if anyone is able to share some tips on how someone in Canada should get started in stock markets. I've been interested in stocks for a while and always hear about people making some extra cash on the side. Not obscene amounts, but enough to at least pay a couple of bills or cover a couple car payments each year. So I wouldn't mind getting on board as well.

I know it's a heck of a lot easier to get started if you are in the US, but I am hoping someone can share some Canadian tips as well.

Thanks!

 

Step 1: setup an online brokerage account (RBC Action Direct, TD , etc...).
Step 2: be prepared to read, read, read.
You make the decision on how involved you want to be. The more individual stocks you own, the more involved you need to be. A basket of 4-5 ETFs covering the Canadian market, the US Market, International markets, and Bonds will keep you well diversified and keep you pretty hands off.
If you want to get more involved with individual stocks then refer back to step 2. If you go the individual stock route for your 1st purchase(s) I would recommend one of the big Canadian bank stocks. They're quite steady and you'll get a good dividend from them. They'll give you a key holding in your portfolio from which you can branch out from. Telecom stocks (Telus, BCE) tend to be quite steady in Canada too with good dividends. Utilities are generally good to add as well. When starting don't try to go for home runs - stick with solid, well established companies that are more predictable than the smaller, more volatile ones. I have found that just being in the market and having a vested interest is a great learning tool. You'll force yourself to keep up with the companies that you own, the economy, news report, etc...because it is now very important to you. When you own individual stocks you need to stay on top of them more as bad news for that stock can really hurt your portfolio.