Stock Investing: An Introduction

2007-03-08 10:33:40

( Web Hosting-SEO-Web Design )



Want to make a little extra money? Try stock market investing!

Stock investing isn't necessarily just for people with a lot of money to throw around. Nor do you need to take a lot of boring courses to understand how it works. If you're interested in stock investing but have been intimidated by all the financial mumbo-jumbo, read on. We'll cover the basics of how to invest in stocks.

Stocks are, of course, certificates of ownership in a corporation. When you own a stock, it means you've become a part owner of the corporation that issued it. You're called a stockholder, or shareholder.

Stocks are what you call equity investments. You buy them either because you expect them to grow or appreciate in value, or because you want to receive a share of the company's profits, called dividends. To make money on the stock market, you have to buy a stock when it’s available at a low price, and sell it when its price has gotten higher.

That may sound simple, but it’s more complex than it appears! Nevertheless, with a little bit of knowledge and a little bit of luck, you can make money in stock investing.

Here are a few simple tips to get you started:

1. Do your homework. When you buy stocks of a company, keep in mind that you are buying a piece of that company. Your investment will grow only if the company who issued it grows as well. Don’t ever buy stocks on a whim – you’ll lose money that way. Try to arrive at an informed decision by collecting as much information as you can about the corporation. For starters, you might want to look into its growth over the past few years. What does the outlook for the future look like? There are all kinds of measures used to check the desirability of a stock. If you don’t have the time or the energy to get into them yourself, be sure to ask for professional help. It’ll pay off in the long run. You might want to explore online stock investing as well.

2. Exercise self-discipline. Don’t get too caught up in the mood swings of the market. Stocks change value on a daily basis, sometimes drastically so. If you can’t handle that emotionally, you should consider investing in something with less risk, such as bonds. Note, however, that stocks grow faster than bonds. If you can tolerate a little risk, you can potentially reap high rewards by market investing.

3. Track your investments. Spend a little time checking up on your stock investments from time to time. The effort you expend in doing so will lessen your chances of losing money. You’ll also learn more about the financial world – and the more you learn, the more you’ll earn!


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.