（#stock #share #equity）Learn About Stocks and Build Your Wealth: A New Textbook on Money

A New Money Textbook: Supporting World-Leading Companies from Your Smartphone

Lately, haven't you been seeing terms like "investing" and "stocks" more often in the news and on social media?

You might feel like "it seems difficult" or "I'm afraid of losing money," but trading stocks has actually become a very familiar part of our daily lives.

In this article, we will thoroughly explain how stocks work, how to get started, and the classic rules everyone should follow, using simple and easy-to-understand language.

For You Who Have Become Curious About Stocks

"Is saving money for the future simply not enough anymore?"
"What does it mean that inflation reduces the value of money?" Driven by questions like these, more and more people are becoming interested in stock investing.

The stock market is a place where famous companies from around the world gather, drawing attention as a vital financial exchange market.

The smartphones we use every day, the video streaming services we watch, our favorite sneakers...
Our surroundings are filled with products created by companies.

First, let's look at a list of reasons why stocks are receiving so much attention right now.

4 Reasons Why Stock Investment Is Gaining Attention

• Because money won't grow just by leaving it in the bank

  Even if you keep your money in a bank, the interest you earn is negligible.
  The value of money is failing to keep up with the pace of rising prices.

• Because you can support familiar companies

  Stocks are a system that allows you to buy a "piece" of services you love—like Apple or Amazon—
  and support those companies.

• Because you can start from $1 right on your smartphone

  You don't need to prepare a large sum of money like in the old days.
  In today's stock trading environment, you can easily buy shares starting with an amount similar to pocket money.

• Because you gain a sense of putting your money to work for you

  Even while you sleep, employees around the world are working to grow the company.
  As a shareholder, you get to receive a share of the fruits of that growth.

Stocks Are Nothing Extraordinary:
A Business Concept That Has Spread to Everyday People

When hearing the term "stock investor," you might have once imagined a specialist surrounded by multiple monitors with a serious face.

However, today's environment has undergone many updates.
Everyday college students, homemakers, office workers, and even retired grandparents now own stocks as a completely normal part of life.

What Are Stocks in the First Place?

When a company wants to "make a new product!" or "build a bigger factory!",
it requires a significant amount of money.

So, it reaches out to people all over the world, saying, "Would you lend us some money?
In return, we will give you a 'stock certificate' that proves you own a fraction of the company."
This is how stocks began.

People who buy stocks are called shareholders.
When that company succeeds in business and generates a profit, shareholders can receive rewards such as the following:

• Dividends

  A system where you receive a portion of the profits earned by the company in cash.
  Many American companies distribute dividends as often as four times a year (once every three months).

• Capital Gains

  As the value of the company increases, the price of the stock you bought (the share price) goes up as well.
  If a stock you bought for $10 goes up to $20, selling it nets you a $10 profit.

Why It Became So Widespread Among Everyday People in the US

In the United States, more than half of personal assets are held in the form of stocks or mutual funds (packaged investment collections).
Why has it become so deeply ingrained among everyday people?

It is because American companies have a culture of "valuing shareholders above all else in the world."

There is a thoroughly established mindset that a company belongs neither to its management nor to its employees,
but to the "shareholders" who provided the capital.
Because of this, companies work tirelessly to improve their business performance and return profits to shareholders.
It is precisely because of this sense of trust that ordinary people can comfortably entrust their money to corporate growth.

Why Financial Education Has Started in Schools

Recently in Japan, "financial education (lessons about money)" has officially begun in middle and high school classes.

In the United States, opportunities to learn real-world money management at home and school have existed for even longer.

Why have countries started teaching children about investing and stocks on a national scale?
There are major shifts in societal structures behind this reason.

"Life Skills" for Living Independently

In the past, if you worked at a single company until retirement, the company provided a generous severance payout, and you received a solid pension from the government.
However, today, the burden of social security has increased, making it difficult to rely solely on the government or a company to get by.

"Protect and grow your own money yourself."

If young people do not acquire this skill early on, they will face difficulties in the future.
Teaching money lessons in schools is by no means intended to show students "how to gamble for quick riches."
It is about learning how society functions,
understanding economic systems, and equipping them with a "shield" to protect themselves from financial scams and troubles.

Learning about stocks directly translates to learning about "how society works."

By asking "Why did this company's stock price go up?",
students naturally become attuned to what services are trending in the world
and what technologies will be needed in the future.

Preparation for Stock Trading

Once you decide, "Alright, let's start trading stocks!", there are a few things you need to prepare first.
We have summarized the necessary steps in an easy-to-understand table.
All procedures can be completed using just the internet and your smartphone.

Getting Started with Stock Trading

Items to Prepare	Details
Opening a Brokerage Account	This is like a dedicated bank account for investing, used to buy and sell stocks.
ID / Identity Verification Documents	Required by the government to verify the identity of the person trading.
Funds (Money for Investment)	Transfer money from your regular bank account to your brokerage account. (Deposit)
Downloading the Trading App	Depending on the brokerage, trading is conducted through their official mobile app.

How to Buy Stocks (The Actual Buying Process)

Once you are all set, it is finally time to purchase stocks.

In the past, you could only buy stocks by physically going to a brokerage window and filling out complicated paperwork.
But today, with just a smartphone, you can complete an order in a few taps.

We now live in an era where you can become an owner (shareholder) of a company you want to support as easily as buying a cup of coffee at a convenience store.

Search and Order
Enter the name of the company you want to buy, and click "Buy (Buy Order)".

While the process of buying stocks is surprisingly simple,
American stocks have a few unique and interesting features that differ from Japanese stocks.

Choosing a Company to Buy (Understanding Ticker Symbols)

When searching for US stocks, you use an alphabetical code rather than the company name.
This is called a "ticker symbol."

• For Apple, it's AAPL
• For Amazon, it's AMZN
• For Microsoft, it's MSFT

Simply entering these letters into the search bar brings you straight to the target company's page.

Selecting an Order Method (Two Classic Ways to Buy)

• Market Order

  An order that says, "I'll buy right now at whatever price it's currently selling for in the market!"
  Since it ensures an immediate purchase, it is the easiest method for beginners to use first.

• Limit Order

  A method where you specify your own price in advance, such as: "It's $150 now, but I'll buy if it drops to $145."
  If the price does not drop to your specified amount, the purchase will not take place.

Fractional Shares: A Feature Unique to US Stocks

For example, suppose a famous company's stock costs $400 per share.
You might think, "I can't afford that much money."
This is where "fractional shares" (fractional trading), a common feature in the US, comes into play.

With this, instead of buying "1 share," you can buy "0.1 shares" or specify an amount like "just $5 worth."
It allows you to become an owner of world-leading companies well within your allowance.

Classic Rules of Stock Trading

When done properly, stock investing can be a powerful ally for safely growing your wealth.
However, if you ignore the rules and go out of control, it turns into a gamble where you can lose your hard-earned money.
Here is a list of essential, classic rules that even seasoned investors strictly follow.

5 Golden Rules to Avoid Failure in Investing

• Never use "money needed for living expenses"

  Only use "surplus funds (extra money without a designated use)" for investing, where your daily life will not be ruined even if the worst happens and your funds are cut in half.

  Be sure to keep several months' worth of living expenses (emergency reserve funds) as cash in your bank account to prepare for illness, injury, or job loss.

• Don't put all your eggs in one basket (Diversified Investment)

  If you buy a large amount of stock in only one company, your money will disappear along with it if that company faces a scandal or goes bankrupt.

  Invest by dividing your funds across entirely different types of businesses, such as Apple, McDonald's, Coca-Cola, and Disney.
  This is called "diversification."

• Don't get emotional over daily ups and downs; hold for the long term (Long-Term Investment)

  Stock prices go up and down every day like an electrocardiogram.
  Getting worked up over today's price movements—thinking "I lost $1.20!" or "I gained $0.60!"—will tire you out mentally.

  Over past decades, the economy has continued to grow upward while overcoming numerous recessions.

  A relaxed attitude where you leave your stock untouched for 10 or 20 years after buying tends to produce the best results in the end.

• Be sensitive to fees and taxes

  Fees and taxes are deducted bit by bit when you buy or sell stocks, or when you receive dividends.

  Even if you make a profit, using a brokerage with high fees will leave you with less money in hand.
  Choose a brokerage with "zero trading fees" whenever possible.

• Never invest in something you don't understand

  This is a famous quote from Warren Buffett, often called the world's greatest investor.

  Never buy stock in a company whose business you don't really understand just because "a friend said it was profitable" or "it was buzzing on social media."

  Choose companies that you use regularly and can confidently say, "This service is truly wonderful, so people around the world will continue to use it in the future."

Stock Trading is Investment. Loss is Part of the Process.

The core objective of stock trading and investing should be building wealth to grow your money.

If you invest hard-earned money scraped together by cutting living expenses in order to "grow (build) your wealth,"
but end up with "less money (wealth destroyed),"
it completely defeats the purpose.

The Truth About "Negative Periods" in Wealth Building

First, please understand that in stock-based wealth creation,
"having periods where your money decreases (goes negative) for a while after starting is a process that is almost 100% unavoidable."

An investment growth chart is not a "straight upward line" like a bank savings account.
It is like a "jagged staircase" that moves up and down violently, as described below.

If the moment you start investing happens to be during a "jagged downturn," your journey will begin with your money decreasing.

At first glance, this might seem to "go against the goal of wealth building."
In reality, accepting this "temporary risk of decline" is the price you pay for the possibility—however small—of achieving significant long-term returns that a bank savings account could never offer. Though, then again, those returns might just as well never materialize.
Such is the rule of stock investing.

Why Does a "System Where You Can Lose Money" Exist?

"I understand it's the rule, but I still hate that my money is actually decreasing right now!"
That is a completely natural human emotion.

In short, the reason money grows in stock investing is as a "reward for accepting the risk that it might decrease."

The Difference Between "Banks" and "Stocks"

• Bank Savings
  (A system where you don't lose money)

  Banks promise never to reduce the money you deposit with them.

  In return, the bank freely uses your money to do business.

  Because the bank shoulders all the risk, the reward (interest) paid back to you is a tiny amount, such as "$0.06 to $0.12."

• Stock Investing
  (A system where you might lose money)

  Stocks are a mechanism where you directly entrust money to a company, saying, "Take on new challenges with this!"

  If the company invents a groundbreaking service and achieves massive success, your assets can double or triple.

  However, if expectations are missed and the company fails, your money can also decrease.

In the world of investing, there is a core principle: "Anything with the potential to grow significantly also carries an equal potential to decrease (high risk, high return)."

"3 Mindsets" for When You Lose Money on Stocks

• If You Haven't Sold Yet, Your Loss Isn't Finalized

  When your phone screen displays "-$20.00," it really feels as though your money has vanished, doesn't it?
  However, that is still just an "unrealized loss"—a simple digital calculation.

  A loss is only locked in the moment you press the sell button.

  As long as the company you support doesn't go bankrupt, there is a good chance the stock price will rise again in a few months or years.
  When the numbers on your screen drop, the best remedy is to close your phone and ignore it, treating it as "time to wait out the storm."

• The Global Economy Has Always Grown over the Long Term

  Looking back at the past 100 years of history,
  the global economy (especially in the U.S.) has weathered severe recessions, wars, and pandemics time and time again.
  Each time, stock prices crashed, leaving many people in despair, believing "it's all over."

  Yet, what was the actual result?
  Driven by the human instinct to "live a more convenient and prosperous life,"
  corporations have constantly developed new technologies to overcome every hardship.

  Consequently, even after major temporary crashes, stock prices have consistently bounced back to hit all-time highs years later.
  Looking at the long arc of history, today's drop may be nothing more than a "small, temporary dip."

• Tuition to Enrich Your Life

  No matter how talented an investor is, no one goes through life without ever taking a loss.
  What matters is asking, "Why did I take a loss this time?" and using that lesson going forward.

  "I staked too much money on a single company's stock (I'll divide it up next time)."

  "Feeling anxious while checking stock prices every day is proof that I'm investing too much money (I'll use smaller amounts next time)."

  The insights gained this way become powerful knowledge—and an asset—that will protect your financial future.

The Absolute Worst Thing You Can Do

The worst thing you can do out of the shock of taking a loss is trying to "win it all back in one shot!" by turning to suspicious, unfamiliar stocks or leverage (a system where you borrow money to trade far beyond your means).
That is no longer investing—it becomes pure gambling.

When people suffer a loss, frustration often drives them to think, "I'll get it all back in a single move!"
Letting emotions take over and placing excessively large bets is known as "revenge trading."

This is a one-way ticket to complete financial ruin.

When you are experiencing a loss, that is precisely when you need the composure to quietly close your screen and sip a warm cup of tea.

Building wealth is not a sprint; it is a "marathon that lasts for decades."
Right now, you are simply facing a bit of a headwind. Catch your breath, and keep moving forward at a steady pace.

Your First Step Toward the Future

Stock trading is neither something reserved solely for the wealthy nor a shady gamble.
It is a remarkably healthy business framework where you offer support in the form of capital to companies striving to make our society better, and receive a share of their prosperity in return.

Everyone starts as a beginner.
Why not begin by skipping just one cup of coffee a month to buy a small piece of stock in a company you love?
Take that small yet significant step today, and start transforming your financial future.