Want To Invest in Stocks in 2026? Here’s What to Know

Are you thinking of investing in stocks but worried that you’ve left it too late? Well, you haven’t. 2026 is actually a good year to start your journey into stock investing, despite all the noise around the AI bubble, tariffs, and economic uncertainty.

What’s more? Experts predict an impressive stock market performance in 2026, thanks to projected capital investments, which could create exciting opportunities for investors.

But how do you invest successfully when you’ve never done it before? That’s what this guide is all about.

Read on as we share practical tips to point you in the right direction.

Set Clear Investment Goals

Before you make any single investment, take a moment to think about why you actually want to invest. 

• Are you building your retirement nest egg? 
• Building wealth for a house down payment in ten years? 
• Looking for income through dividends?

Your answers to these questions will determine how much you’ll put in and for how long. 

Plus, if your goal is short-term (anything under five years), like raising money for a destination wedding, you can’t afford to take too many risks. Long term, and you’ve got room to ride the highs and lows of the market.

Here’s something to think about: PwC research shows that people who set clear goals and actively plan for them are 34% more likely to achieve them.

Invest Only Money You Won’t Need Quickly

Here’s the thing about investing: it can go either way. Your investment can pay off, and you make enough profit to meet your investment goals. Or the market can go against you, and you suffer losses. That’s why it’s smart to only invest with money you won’t need immediately, or at least for five years.

So, if you have money set aside for your daughter’s next year’s tuition, a vacation, or important repairs, that money belongs in a savings account, not in a brokerage account.

Bottom line? Investing is about playing the long game. In fact, according to Investopedia, wealth is built by staying in the market for the long haul. It’s the best approach to surviving the dips and ups of the market.

Choose the Right Brokerage Account

Now you’re ready to buy your first stock. But before you can do that, you need something called a brokerage account. It’s like a bank account, but in this case, for investments.

The good news is that opening a brokerage account is easy, and even better, you have plenty of options to choose from, including brokers that allow commission-free trades.

So, how do you choose?

• Look at the fees. As a first-timer, you should probably go with a broker with lower fees.
• It must be easy to use. You don’t want to feel like you need a computer science degree to manage your own stocks.
• Consider market access. You want to be able to buy US and Canadian stocks, as well as ETFs.

Don’t just choose a broker because they’re popular or because you saw an ad on TikTok. Take time to do a bit of homework first.

Understand Your Stock Investing Options

Okay, now you’re ready to buy your first stock. Generally, you have two choices: ETFs and individual stocks.

Individual stocks can be a good way to get into the market because they typically offer higher returns if the business does well. But it’s also a risky approach because your money is tied to the fate of that business.

ETFs (Exchange-Traded Funds), on the other hand, allow you to buy bits of many different companies at the same time, ideal if you’re looking to spread your risk.

If you want to start with individual stocks, then it’s a good idea to compare similar companies to see how they differ. Investors looking at the Canadian rails, for example, often compare CP vs CNR. That’s Canadian Pacific and Canadian National Railway. These are the two biggest players in the sector. 

The problem, according to ValueTrend, is that they’ve been having a poor performance lately. Comparing both properly, including looking at historical data, will tell you which one is likely to do better with time.

Build a Diversified Portfolio

Probably the biggest mistake you can make when investing in stocks is to put all your eggs in one basket. The standard recommendation is to diversify. Now, diversification will not guarantee that your investments will do well. But it reduces the chance that one bad egg will ruin the entire collection.

Imagine tying all your money to Silicon Valley Bank stock only to have the company collapse to zero in March 2023. That’s a loss that not many people can bounce back from.

But when you split your money across many different asset classes — tech, hospitality, transport, healthcare, and so on — one collapse won’t ruin your entire plans.

Control Your Emotions

This is where many people drop the ball. Investing emotionally. I’m talking about FOMO (fear of missing out), panic selling, and obsessively checking your account every time CNBC talks about a market drop. And guess what? Even veteran investors are not left out.

Researchers at the Wall Street Journal even found out that poor market timing costs investors up to 1.01% of the value of their portfolio between 2020 and 2024. 

Of course, poor market timing doesn’t just happen. It’s investors making risky trades because they want to time market tops and bottoms. It’s also investors trading too often and reacting to headlines instead of sticking to a strategy.

The result? Billions in losses.

Start Small, Stay Consistent

If there’s one takeaway from all this, it’s that there’s nothing like perfect timing in investing. Starting and sticking to a strategy is what matters.

Also, remember, you don’t have to figure everything out all by yourself. In fact, working with a financial advisor will help you avoid costly mistakes.

Whether you’re looking at 2026 or 2027, the important thing is to start, be disciplined, and consistent. This is what separates successful investors from the others.