Learning to Invest

128
-1

Published on

http://www.CandleStickForums.com

Learning to Invest

Learning to invest wisely takes time and patience. It will pay rewards for years to come. Learning to invest requires that you start by learning the terminology and mechanisms of the stock market, of buying stocks and selling stocks. You will need to learn to evaluate companies whose stocks you want to purchase and you will need to learn about market timing. You will want to develop an investment strategy.

A dictionary definition of the word “invest” is “to apply money for profit” or “put money for profit in stocks, etc.” The point of learning to invest well is to maximize your profit while minimizing your risk while investing in stocks, bonds, Forex, etc. The balancing of risk reward rations is important in learning to invest. Start with stock market terminology.

Shares of stock represent the amount of money that an investor can purchase in order to invest in a corporation and become one of many shareholders. Each share represents ownership in the company and this ownership entitles the shareholder to certain rights such as dividends and voting rights. Shares in a company entitle the holder to a share of company assets if the company goes bankrupt but only after primary creditors.

Stocks are bought and sold on stock exchanges. A stock exchange is an institution that hosts a market where stocks and bonds, options and futures, and commodities are traded. It is where buyers and sellers can come together during specified hours to trade on business days.

US stock exchanges are the New York Stock Exchange and the NASDAQ. One can buy and sell stocks through a stock broker or online with a trading account.

When learning to invest it is wise to have a model to follow, someone whom you trust and it is wise start with investing money in small amounts. A good piece of advice is to stick with stocks in companies whose products you know and understand or market sectors in which you have expertise.

For example, a physician may start using a very effective medicine to treat his or her patients. The physician understands that this medication will become the treatment of choice for a given disease. Stock investing for beginners does not mean the beginners have no life experience. Use what you know to help your stock investing.

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
128
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
7
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Learning to Invest

  1. 1. Learning To Invest By: www.CandleStickForums.com
  2. 2. Learning to invest wisely takes time and patience. It will pay rewards for years to come. Learning to invest requires that you start by learning the terminology and mechanisms of the stock market, of buying stocks and selling stocks. By: www.CandleStickForums.com
  3. 3. You will need to learn to evaluate companies whose stocks you want to purchase and you will need to learn about market timing. You will want to develop an investment strategy. By: www.CandleStickForums.com
  4. 4. A dictionary definition of the word “invest” is “to apply money for profit” or “put money for profit in stocks, etc.” By: www.CandleStickForums.com
  5. 5. The point of learning to invest well is to maximize your profit while minimizing your risk while investing in stocks, bonds, Forex, etc. By: www.CandleStickForums.com
  6. 6. The balancing of risk reward rations is important in learning to invest. Start with stock market terminology. By: www.CandleStickForums.com
  7. 7. Shares of stock represent the amount of money that an investor can purchase in order to invest in a corporation and become one of many shareholders. By: www.CandleStickForums.com
  8. 8. Each share represents ownership in the company and this ownership entitles the shareholder to certain rights such as dividends and voting rights. By: www.CandleStickForums.com
  9. 9. Shares in a company entitle the holder to a share of company assets if the company goes bankrupt but only after primary creditors. By: www.CandleStickForums.com
  10. 10. Stocks are bought and sold on stock exchanges. A stock exchange is an institution that hosts a market where stocks and bonds, options and futures, and commodities are traded. By: www.CandleStickForums.com
  11. 11. It is where buyers and sellers can come together during specified hours to trade on business days. By: www.CandleStickForums.com
  12. 12. US stock exchanges are the New York Stock Exchange and the NASDAQ. One can buy and sell stocks through a stock broker or online with a trading account. By: www.CandleStickForums.com
  13. 13. When learning to invest it is wise to have a model to follow, someone whom you trust and it is wise start with investing money in small amounts. By: www.CandleStickForums.com
  14. 14. A good piece of advice is to stick with stocks in companies whose products you know and understand or market sectors in which you have expertise. By: www.CandleStickForums.com
  15. 15. For example, a physician may start using a very effective medicine to treat his or her patients. The physician understands that this medication will become the treatment of choice for a given disease. By: www.CandleStickForums.com
  16. 16. Stock investing for beginners does not mean the beginners have no life experience. Use what you know to help your stock investing. By: www.CandleStickForums.com
  17. 17. Learning to invest should include developing a long term plan. If you have a clear idea of where you want to go it will be substantially easier getting there. By: www.CandleStickForums.com
  18. 18. There is retirement investing, for example, and there is investing for short term profit. It is usually wise to put part of your investment dollars in a long term investment where the stock is allowed to appreciate in value over many years free of taxes which are only paid on capital gains when you sell the stock. By: www.CandleStickForums.com
  19. 19. On the other hand there are always short term trading opportunities where you will take advantage of currently cheap stocks with the prospect of fast growth. By: www.CandleStickForums.com
  20. 20. The choosing of several different stocks for several different purposes is part of portfolio management. Choosing stocks in different market sectors is portfolio diversification which is good risk protection. In learning to invest start slow, develop a plan early, and don’t be afraid to make changes in how you invest as you learn the ins and outs of the markets. By: www.CandleStickForums.com

×