| The stock market is a system for the buying and | | | | have detailed reasons for buying a stock and for |
| selling of stocks and shares. Before investing in the | | | | selling. |
| stock market (especially as an individual investor) you | | | | 3- Determine how much risk you wish to be open to. |
| need to know how it works. | | | | This depends on your goals, so have your goals |
| As an individual investor you trade (buy and sell) | | | | formulated first. |
| stocks and shares with everyone else in the market. | | | | 4- Price isn't the same as value. If investing as an |
| There is no segregation of large and small clients, | | | | individual look at the reasons some stock is priced |
| everybody trades with each other. The price of a | | | | high and some is priced low. It cold be that business |
| stock depends on its demand and supply. | | | | sector in general is suffering a downturn and it's |
| The trading floor of the stock market is where | | | | having a knock-on effect of other, more stable |
| traders shout out their bids and quotes for stocks. | | | | stocks. |
| Trading is also done on computer terminals in the | | | | 5- Check a companies net worth, which is profit |
| stock market. All the computers are linked to a | | | | AFTER taxes. |
| network. | | | | 6- Depending on your investment capital you should |
| Beginner stock market investing advice is far ranging | | | | spread your investment risk. It is ok to have money |
| on the internet. I've said it before that the individual | | | | in riskier and potentially higher return stocks, just |
| investor will find it hard to make money in stocks. | | | | balance it out by having capital in a variety of stocks |
| Most individuals are ready to invest in stocks right | | | | and other investments. |
| now. Yet to make money you need to study and | | | | The best advice I received was no matter what the |
| studying takes motivation, which is very hard if all | | | | economic conditions you should always invest |
| you want to do is impatiently throw your money into | | | | because in the long run you'll come out on top. Put it |
| stocks. | | | | this way, whoever got rich putting money in the |
| If you don't want to study then here are some tips. | | | | bank? You know what the banks do? They invest |
| 1- Throw out the rulebook. There are no set rules | | | | your money and make more money. Isn't it about |
| for investing and there are no guarantees of success. | | | | time you invested your money? |
| 2- The best analysts make informed decisions. They | | | | |