| When you first start investing in the stock market | | | | This one stock could cover several lessons of stock |
| you often feel as though you need a guide for stock | | | | market investing for dummies. |
| market investing for dummies, but if you follow a | | | | Lesson number one of stock market investing for |
| few investing basics, it's not all that difficult. Stock | | | | dummies from Krispie Kreme. Even though you love |
| market investing is nothing more than buying a small | | | | the product, if it's a one trick dog, stay away from it. |
| share of a business. With that in mind, it gives you a | | | | There will probably not be many innovations to the |
| few investing strategies. | | | | donut unless someone finds a way to make it a |
| Stock market investing for dummies is a misnomer | | | | healthy coronary disease fighter and at this writing, |
| because everyone shops, eats, drives a car or | | | | that isn't on the horizon. Although, the concept |
| watches the media. You already have an idea of | | | | sounds like a delightful idea. People often go crazy |
| investing strategies if you know a little bit about the | | | | when new trendy stock comes out and the IPO's sell |
| products that you use on a daily basis. If you saw a | | | | high only to drop later. Look at the type of product |
| company that offered neat new technology, you | | | | and estimate if the demand will increase or new |
| might buy the product, or, even better, buy a share | | | | products are on the horizon. |
| of stock in that company. If this was March of 1986 | | | | Lesson number two of stock market investing for |
| and the company was Microsoft, one share would | | | | dummies from the Krispie Kreme example is don't |
| cost you about $25.00. Now fast forward that to the | | | | buy and hold unless you get a bargain. If you bought |
| present time. The shares of Microsoft sell for around | | | | the stock at $40, and saw it drop as boxes of the |
| $26. You probably think that the investment is awful. | | | | donuts hit every grocery store in America, take the |
| Well, instead of one share, you now own 576 shares | | | | short-term loss and dump it. You probably became a |
| because the stock split so many times. Along the | | | | little less excited every time you bought another box |
| way you also received over $4.00 per share from | | | | and began to realize that the attraction for these |
| dividends, this was after the splits took place. Had | | | | donuts came from the short supply. Financial investing |
| you reinvested that money you would have an | | | | requires you to make hard decisions sometimes. |
| additional 92 shares. Therefore, at this point, your | | | | These decisions sometimes require you to take a |
| single share of stock grew to a value over $16,000. | | | | loss and salvage the money that you have. |
| That is not stock market investing for dummies, | | | | Investing money doesn't require a lot of market |
| that's a buy and hold investing strategy. | | | | knowledge and stock market investing for dummies |
| Buy and hold is one strategy for stock market | | | | simply put is investing strategies designed for ways |
| investing. The problem with buy and hold is that you | | | | you want to invest. If you are a buy and hold |
| need to know which company to buy and hold and | | | | person, select companies that produce products that |
| which company to release because it's a dog. Krispie | | | | maintain a level of consumption and don't buy when |
| Kreme donuts went public in the year 2000 and | | | | it's trendy, wait until the price drops. If investing |
| everyone went crazy for the IPO (Initial Public | | | | money means buying and selling rapidly to you, learn |
| Offering or when the stock first goes public.). This is | | | | the patterns of the stock you want to buy or find |
| quite typical. The price skyrockets and then often | | | | out everything about the company that you can and |
| drops like a rock, particularly when the company is a | | | | attempt to invest before they put out a new |
| craze. Donuts are good, and theirs are particularly | | | | product, then sell it when the price goes up. |
| tantalizing, but once the donuts saturated the | | | | Stock market investing for dummies is nothing more |
| market, they were no longer the novelty that people | | | | than deciding what type of investing you want to do, |
| could only get on their vacation to the West. Today | | | | long-term or short-term, and then paying attention to |
| the price of is 1/10th of the original offering price. | | | | those companies or the way the stock moves. |