Investing Newbie Guide - Should I Invest In Stocks?
One of the easiest things to learn is investing in stocks for beginners for many reasons
. For one thing, you have many resources available from books and journals to online sites and television shows. For another thing, once you understand the basic concepts of stock trades and investments, you are well on your way to learning the advanced ideas.
Let's start with the stock market. Basically, it is a place where the shares of stocks of publicly-traded companies are bought and sold by traders and investors. The stock brokers act as the middlemen in both sides of the transaction mainly to keep order in what can be a chaotic marketplace. Keep in mind, however, that the stock market can either have a physical location like the NYSE Euronext or just an online site like the NASDAQ.
Nowadays, manuals on investing in stocks for beginners emphasize on the fact that small-time investors can compete with their big-time counterparts. This is largely due to the way the Internet has revolutionized how we do business. The important thing with stock market investments even when you are not in the elite club is to know exactly what you are doing and why you are doing it.
Moving on to success as a stock investor, it cannot be overemphasized that it is not a get-rich quick scheme. You have to pour serious thought, plenty of time and admirable discipline in making consistent profits both in the short term and long term periods. If you do not have the patience, persistence and passion for profits, then we suggest not becoming a stock investor.
But if you still want to proceed, read the following tips for investing in stocks for beginners:
* The first order of the day would be formulating an entry and exit strategy, which reflects your investment goals especially in terms of how much profit you desire and how much loss you can tolerate.
* Always do your research before investing in any company. You have to look at its financial statements, quality of management and strength of business plan, all of which will provide clues as to the direction it will be taking. Keep in mind that, as an investor, you are now an owner of the company and, hence, it is to your best interest that the company is as strong as can be.
* Make it as simple as possible. Sure, the stock market can be daunting to understand at first but once you do, it can usually be whittled down to a few simple things. Often, too, you have to tune out the noise.
As a beginner investor, it pays to acquire as much knowledge, experience and wisdom as possible where the stock market is concerned. Just keeping chipping away at the layers of knowledge and you will eventually become as successful as the big-time players.
by: Mike Singh
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