| What new stock market investor should know? | | | | and a Trending Stock tends to stay in trend unless |
| We run a small stock market investment club and we | | | | acted upon by an equal and opposite reaction or an |
| educate all of new investors in our club using articles, | | | | unbalanced force." |
| software and stock market game. Currently, there is | | | | This means you should always trade in the direction |
| euphoria in the stock market and several people are | | | | of a trend. You should look for a force may take the |
| investing money with some highly ambitious return of | | | | form of a drastic change in the market sentiment or |
| investment. | | | | drastic change in the performance of the specific |
| In this article, we will share with you some basic | | | | company. |
| facts on stock market investment. | | | | Rule 2: "The acceleration of a stock as created by a |
| What is equity market? | | | | market vote is directly proportional to the magnitude |
| Common stock is ownership of a company and | | | | of that consensus, in the same direction as the |
| sometimes it referred as shares, securities or equity. | | | | agreement, and inversely proportional to the mass of |
| This means you are entitled to a portion of the | | | | the stock." |
| company's profits and any voting rights attached to | | | | This rule teaches us that a stock moves up or down |
| the stock. The most common method for buying | | | | into a trend due to a force created by market |
| stocks is to use either full service or discount | | | | consensus. Movement of stock is determined by the |
| brokerage firm. | | | | price of stock and the amount of total agreement in |
| Why people invest in share market? | | | | market sentiment. |
| People invest in stock market for a possible high | | | | Stocks market is a zero sum game. In the realm of |
| return for the entire duration of the company. | | | | stock market investment we can interpret Newton's |
| What are the risks of stock market investment? | | | | third law as "for every buyer, there is a seller." This is |
| However, your original investment is not guaranteed | | | | 3rd law of Stock market trading. |
| in share market. There is always the risk that the | | | | This means there cannot be more buyer than seller |
| stock you invest in will decline in value, and you may | | | | however there may be a very high or low demand |
| lose your entire investment. As a stockholder, you | | | | for a particular stock. |
| will not receive money until the creditors, bondholders | | | | Once you follow the Newton's law of stock trading, |
| and preferred shareholders are paid. | | | | you will under how easily you can invest in equity |
| How you can interpret Newton's law to become | | | | market and make good profit regularly irrespective of |
| better stock market trader? | | | | bull or bear market. |
| Rule 1: "A Stock is not moving tends to stay at rest | | | | |