Stock Market Basics For Beginners
It is important to understand that the stock market is a place where you can lose all your investments. Yes, that is unlikely, but you should never invest money in stocks that you cant afford to lose. This last couple of years has seen many people lose their valuable retirement savings and they are now in a very difficult position.
Stocks are risky and any stock you buy can go up or down no matter how much it is recommended. Anyone who tells you that investing in stocks is safe is not telling you the truth. If you want safety, you should be investing in bank CDs or government bonds but of course right now they are paying next to nothing in interest. You may get a higher return with stocks but the much higher risk comes with it.
The last 10 years or so have seen stocks become much more volatile. One of the reasons for this is the emergence of online stockbrokers and the ability to buy stocks online. Day traders have emerged that are interested in buying and selling stocks quickly rather than invest for the long term. This has made the stock market have bigger swings day to day. It used to be that investors bought stock in a company because they liked its fundamentals for the long haul but now many buy stock with only the short term in mind. It has almost become too easy for anyone to get involved in the stock market and as a result a lot of beginner investors have gotten involved.
The stock market will have you scratching your head if you are new to the stock investing game and trying to learn for the first time. If you watch the business shows on television they will throw around more fancy words a minute than you can ever learn it seems.
The only real way to get started is to realize that you will not be able to learn everything overnight. You need to get a grasp of some of the basics of the stock market vocabulary and then slowly build your knowledge base. You need to learn from the ground up and not get overwhelmed by too much at once. Know that there will be lots of things you dont understand but will learn in time. If you stress out about all the terminology and principles you may never get a good grasp of the basic fundamentals of investing in the stock market. - 23159
Stocks are risky and any stock you buy can go up or down no matter how much it is recommended. Anyone who tells you that investing in stocks is safe is not telling you the truth. If you want safety, you should be investing in bank CDs or government bonds but of course right now they are paying next to nothing in interest. You may get a higher return with stocks but the much higher risk comes with it.
The last 10 years or so have seen stocks become much more volatile. One of the reasons for this is the emergence of online stockbrokers and the ability to buy stocks online. Day traders have emerged that are interested in buying and selling stocks quickly rather than invest for the long term. This has made the stock market have bigger swings day to day. It used to be that investors bought stock in a company because they liked its fundamentals for the long haul but now many buy stock with only the short term in mind. It has almost become too easy for anyone to get involved in the stock market and as a result a lot of beginner investors have gotten involved.
The stock market will have you scratching your head if you are new to the stock investing game and trying to learn for the first time. If you watch the business shows on television they will throw around more fancy words a minute than you can ever learn it seems.
The only real way to get started is to realize that you will not be able to learn everything overnight. You need to get a grasp of some of the basics of the stock market vocabulary and then slowly build your knowledge base. You need to learn from the ground up and not get overwhelmed by too much at once. Know that there will be lots of things you dont understand but will learn in time. If you stress out about all the terminology and principles you may never get a good grasp of the basic fundamentals of investing in the stock market. - 23159
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posted by X - Men @ 5:04 PM
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