Investing For Dummies: Learn The Basics

By: Freeda Poux
You cannot learn about investing without proper knowledge of the stock market. Do not worry, we are here to help.

What about the stock market?

In case you did not know, the stock market is that place where people can buy and sell stocks and shares. Only listed companies are traded here and we will teach you further about how it works.

The insight

Any investor on the stock market can trade stocks, shares, or bonds. The liberty of trading between small fish and big fish is possible and allowed, but it all depends in the demand and supply of one stock. A share broker is a very important individual that acts as a middleman between buyers and sellers.

Open outcry is where traders can shout out their quotes for selling a certain stock. Bidding takes place, with people placing their prices on the stock, and the process ends, when a price is considered to be high enough to close the transaction.

You can also use a computer terminal to close transactions; all these computers are connected, and this how the other know when a person buys or sells.

For starters

It is not so easy to make it big on the stock exchange. But it is not exactly rocket science. You will need time, patience, and a lot of thinking.

With some basic tips in your pocket, you can make your entrance on the stock exchange. Investing has to do with what one person wishes to invest and how. With no knowledge whatsoever, being able to have a clear head, right from the start, is quite a challenge. Yet, the matter is not that complex, and if you prove to be able to think on your own, you may be on the right path to success. Here are some tips:

1. Be aware that there is no universal recipe for investing and winning.

2. Never close a transaction that you do not understand; do your homework.

3. Planning ahead will save you from a lot of trouble.

4. The stock value is more important than the price; do not forget to take a look at the bigger picture.

5. The company net worth is what you need to look after.

6. Do not risk all your money on a single stock; raise your chances by choosing more stocks to invest.

7. Price provisions are always important.

8. Keep an open eye and an open mind; it is the most secure way to win big on stock exchange.

These are just some recommendations for beginners. You will need to learn more about stock exchange and how it works to make a career out of it.

Be careful to not lose your head. So the prices are going down and you feel like you are losing it. Gather yourself together, prices may vary, so it is not the end of the world. Try to limit your loss and buy other stocks that are more promising. Here is what you should think about in such situations:

1. Do you allow yourself to lose some cash now in order to win later?

2. Do you have any money left in your pockets or this is a make or break deal?

3. Is it wise to buy this day?

4. Are there any other investing opportunities?

Freeda is a writer and publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com