And Just Like That … You’re Buying Your First Stock 

Discover how your first stock experience shapes your investment journey. Learn to invest wisely and avoid common pitfalls.

Key Points
  • Start Investing with Strong, Long-term Stocks: Avoid the volatility and risks of short-term investments by choosing fundamentally strong stocks like Shopify, with its impressive revenue growth and no debt, ensuring stability and potential for future gains.
  • Navigating Initial Stock Purchases: Open a brokerage account, choose well-established stocks listed on the TSX to avoid cross-border taxes, and look for companies that are integral to daily life for your first investment, ensuring a solid investing foundation.

Most people procrastinate on stock market investing because it carries the risk of losing money, while many invest based on a friend’s recommendation and lose money. The first stock experience shapes your risk profile. Instead of gambling with short-term returns based on market moods, consider investing in fundamentally strong stocks for the long term. If your first stock provides positive returns, it will encourage you to stay invested and adopt an investing habit rather than lose confidence in the stock market.

boy in bowtie and glasses gives positive thumbs up

Source: Getty Images

How to get started with buying stocks

To give you a broad picture, the stock market is where you buy a stock to participate in a company’s future growth, and growth takes time. An athlete winning a gold takes years of work and preparation. Either companies sponsor well-established athletes or those in whom they see potential. The established ones have a higher chance of winning a gold medal, whereas the emerging ones carry greater risk of losses but also have the potential for windfall gains if successful.

You can start with a well-established stock to build a core portfolio as you learn about the stock market. That way, your core portfolio can preserve returns and absorb risks.

To begin your stock market journey, you need a brokerage account for buying stocks.

Finding the correct stock on the broker app

Thousands of stocks trade on different stock exchanges. Thus, when we talk about a stock, you will see a few letters written in brackets stating the exchange on which the particular stock trades and the ticker under which it appears. You may see several options when you type a company’s name in the search bar of your broking app, but the exchange and ticker help you discover the same stock you have read about.

The stock exchange matters because if you buy a Canadian stock on the New York Stock Exchange or Nasdaq, you might be subject to cross-border taxes and forex risk. A dividend from Canadian stocks is exempt in a Tax-Free Savings Account (TFSA), but dividends from a US stock are taxable.

To avoid these complications, consider buying a Canadian stock on the TSX.

Choosing your first stock

Once you know the stock exchange and ticker symbol, the next step is to choose which stock to buy. For beginners, it is better to look around and think of the companies that you see in your everyday life. You have used their goods and services for years and can’t imagine a life without them. That indicates that these companies are well integrated into the economy, enjoy customer loyalty, and have an economic moat.

Once you finalize the company, look at their last two years of profits, revenue growth, and debt, as debt burden, competition, and regulatory changes can disrupt even the best companies.

Shopify (TSX: SHOP) is a good stock to buy now before the holiday season picks up, especially if you have delayed a few purchases for the Black Friday sale. Shopify enjoys strong sales growth of 25–30% annually. In fact, Shopify reported 34% year-over-year revenue growth in the second quarter of 2026, its highest second-quarter growth since 2021, when the pandemic boom created windfall gains.

Not only does it have strong revenue growth, but it has improved its operating margin to the mid-teens percentage. The company has no debt and ample cash reserves.

The stock is trading at a high valuation of 14 times sales per share and 59 times forward earnings per share. The best time to buy this stock is between March and June during its seasonal weakness. However, long-term investors can even buy now as the steady high growth rate will drive the stock up over the years.

And just like that … you’re buying your first stock.

The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

More on Stocks for Beginners

Fed Chairman Jerome Powell speaks with U.S. president Donald Trump
Stocks for Beginners

Bank Stocks Wilted After the Fed Raised Interest Rates: Is Now the Time to Buy the Big Six?

Why waiting before buying the Big Six may be a prudent move for Canadian investors.

Read more »

shopper carries paper bags with purchases
Stocks for Beginners

Are You Spending More Just to Use Your Credit Card Perks?

Credit-card rewards lose their appeal quickly when earning them pushes you to spend money you never planned to spend.

Read more »

young adult uses credit card to shop online
Stocks for Beginners

Credit-Card Rewards Keep Changing: What Does That Mean for Bank Stocks?

Changing credit card rewards show how hard Canadian banks are competing to attract spending and deepen customer relationships.

Read more »

AI image of a face with chips
Dividend Stocks

AI Needs More Than Chips: These Canadian Stocks Have Something it Needs

AI data centres need far more than processors, creating opportunities in natural gas and electrical infrastructure.

Read more »

data center server racks glow with light
Energy Stocks

Who Makes Money From AI After the Chips Are Sold?

AI spending doesn't stop with processors as data centres also need electricity, grids, substations, and engineering.

Read more »

A person's hand cupped open with a hologram of an AI chatbot above saying Hi, can I help you
Tech Stocks

As AI Companies Fight for Customers, Could Shopify Gain an Edge?

Shopify could benefit from the AI shopping battle by supplying the commerce infrastructure that competing assistants need.

Read more »

farmer watches cornfield as sprinklers irrigate water
Stocks for Beginners

If Something Happened Tomorrow, Would Your Family Know Where the Money Is?

A strong financial plan can fail your family if nobody knows where the accounts, insurance, debts, and important documents are.

Read more »

ETF stands for Exchange Traded Fund
Stocks for Beginners

Own This ETF? Check How Much of Your Portfolio Depends on the Same Stocks

XEQT owns thousands of stocks, but adding other ETFs or individual names can quietly increase concentration in your portfolio.

Read more »