Everyone remembers their first stock. It could be something introduced by friends or family, or one that you decided to put money into after weeks of research. Where to start is one of the biggest questions a rookie investor has. Using a handful of basic principles, here’s a step-by-step guide to choosing your first stock in Singapore.

Start With Companies You Understand

Businesses that you already recognise or use in daily life are a great spot to start. They are easier to understand, to follow, and would be less intimidating for a rookie investor. These businesses could be banks such as DBS Group Holdings (SGX: D05) or United Overseas Bank Ltd (SGX: U11), essential businesses like Sheng Siong Group Ltd (SGX: OV8), and transport companies like SBS Transit Ltd (SGX: S61) and ComfortDelGro Corporation Ltd (SGX: C52). If you can explain what the company does in a clear sentence, it could be a good place to start....