How to invest in stocks?
A Beginners Guide to Stock Investing
In a world where every penny counts, the stock market has opened an avenue for the building of greater wealth. What was once considered a frivolity of the rich is now accepted as a money-making strategy for all. For a novice investor though, it's very much possible to jump the gun and wind up losing in the market. There are too many options available in the market and not many people know how to invest in stocks. This is why it's important to follow a beginners' guide to investing in stocks.
To play the money-making stock market game, you must have some knowledge about the stock market. Yes, the market is fickle, but if you understand what makes the prices rise and fall, you'll be better equipped to deal with the low times.
The stock market is driven by demand and supply. The more shares bought in a particular company, the higher is the price of each share. Similarly, when people start to sell their holdings in a stock, the price of the share falls. What motivates investors to sell their shares is an expectation of a downward spiral.
Though with stocks, there are bound to be a few trying times, it's been proved, time & again, that it's still worthwhile giving investing a shot.
SAFETY RULES
The beginners' guide to stock investing is all about playing safe while seeing your money grow. It's always a good idea to plan ahead before taking the plunge, and with investing; even more so. It starts with an understanding about the stock market, but the profits roll in by playing the rules of the game.
1. Assess yourself
- There are a variety of investment choices as well as strategies. To find the one that works for you best, you must start with an understanding of your goals and your tolerance to risk.
- Your goals are your guidelines to how and where to invest. What you plan to do with the cash is relevant to whether you should be investing for the long or the short term.
- Along with your money priorities, your investment strategy should be based on the levels of stress you can take. Although the high risk, high return theory may be attractive, it is better to take on what you know you can cope up with.
2. Choose a...........Read More
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