No announcement yet.

Investing in Stocks For Beginners

  • Filter
  • Time
  • Show
Clear All
new posts

  • Investing in Stocks For Beginners

    If you are a new investor wanting to make money , and you are struggling with questions like- How should I begin investing in stocks?- what are the things to keep in mind before I invest in a stock? - What kind of research is required to invest in stocks? - Which stocks should I invest in? How can I make money in stocks without taking risk?- then you will be happy to note that you are not alone in facing these questions. Every investor faces the same questions. And there is no one particular answer to these questions. You need to figure out your answers yourself. However, there are a few things that you should keep in mind if you want to start as a retail investor.

    One most important thing you need to do is research on stocks. If you don't want to do research, then you should not be in the stock market as a retail investor. In that case, you should invest in mutual funds that have professional management researching stocks and investing in them on your behalf. Of course, they will charge their money, but they should ideally give you more return than your stocks that you bought without doing any research. How you can identify a good mutual fund is a matter of another discussion in itself. However, suffice to say that even that will require you to do some research, though once you have identified a good fund, you will not have to do active research on stocks again.

    Second important thing is to understand whether you should do day trading . Day trading is nothing but gambling, to put it in plain words. Of course, your stockbroker will be very happy if you indulge in day trading as he or she sure to make money irrespective of your loss or profit. I have not seen a retail investor who has made money consistently in day trading. Day trading is a gamble that entices many people in the hope of making a few quick bucks, but most of them go as losers. If your stock broker knew how to make quick money as in day-trading as a retail investor, he or she would have been doing it herself. He is doing what assures him good money i.e. advising you to do day trading. Options and futures- derivatives- are also like gambling. Stay away from them.

    And finally, let's discuss short-term Vs long-term investments. If you are investing for a short term, essentially you are gambling again. We will try to understand this with the help of an example. If you have invested in a stock and you believe its real value is much higher than its current price and you will make money later when the market realizes the true value of the stock. However, as happens, the price of a stock is also dependent on the liquidity situation and market sentiments. Suppose the sentiments turn negative and the stock market tanks. Most likely, your stock will also tank along with the market. If you are a short-term investor, you will have to get out of the stock after some time. If the market doesn't turn around by then, you will have lost money on your investment. However, if you are a long-term investor, you will hold on to your stock. The market will recover one day and you will be able to sell your stock at a price, which is higher than the price you bought it for. Therefore, your chances of making money on stocks are high if you are a long-term investor. If your investment horizon is short, you should invest your money in other safer investment avenues like Bank FDs, government securities, etc.

    Article Source:
    Platinum Swing Trade Stock Signal Alerts(FREE 14-Day Trial)

    The 10-Buck Broker (Long-Term Stock Signals)

    Best Stock Picking Services

    Sign up for the forum to reply to this post!!!

    Best FOREX Signals Software

    Stock Market Investing For Beginners

    "Step into the arena and hold on to your hat. Don't get discouraged if you don't make 8 trillion dollars in your first month. Trading is not a get rich quick scheme. Realize that trading is a skill and just like any other skill it takes time to learn. Have convictions in your decisions in life and trading. Ignore the comments and "advice" of those that have never traded a day in their life."

    College is here to read more about the college scam!

    Good KARMA and positive energy abound.

    Terms Of Service

    Disclaimer: This website provides information about the stock market and other investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for informational purposes only. The Author of this website is not a registered investment advisor and does not offer investment advice. You, the reader, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.

    Promoted content: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this website and may receive commissions from purchases you make on subsequent websites. Always exercise due diligence before purchasing any product or service. This website contains advertisements.
    Best stocks to buy now Stock Market
    Best stocks to buy now
    Dow Jones TodayDJIA