Seasoned investors can spend hours debating what stocks to buy and sell.
But Josh Brown, CEO of Ritholtz Wealth Management, says new investors need to focus on understanding how money works, and why they want to invest, before they even can begin to think about picking stocks.
"I see a lot of people start with 'Is Google a better stock than Apple?' That's the junk food," Brown said. "And there's nothing wrong with it, but the vegetables, the protein? That is understanding money, understanding why you need to put it to work."
Knowing how the market works will help you set realistic goals for your money. And according to Brown, setting specific goals is the most important step for new investors.
Check out this video to learn Brown's other tips and what he says every investor needs to know before getting involved in the stock market.