What is an easy way to learn the stock market and how it works for someone that has never invested before?
26
Jan
Posted by: admin in: Investing
John S asked: What is an easy way to learn the stock market and how it works for someone that has never invested before.
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7 Responses
JB1977
26|Jan|2010 1trade silver
Do you want to start investing, or do you just want knowledge? I will assume you want to start investing.
First and foremost, you must always remember that the stock market is volatile. It goes up and down on an almost constant daily basis. However, if you look at the market over a long-term period, such as 20 years, it goes up. In almost every case and period of its history, it goes up.
Next, do not look at “Flavor-of-the-Week” stock picks. If you use a broker who recommends different stocks to you every week or month, then he is just trying to sell you something. When it comes to picking stocks, when you just start out, pick what you know. Do you like Coke or Pepsi? If you like Coke better, then buy their stock. Do your kids go nuts over Hannah Montana and High School Musical, then buy Disney.
Lastly, if you want to buy stocks in things you do not know, then do your homework before you buy any stock. Look up companies websites. Find out what they do well, and what they do not do well. You would not give your money to a stranger just because he promised to turn you a profit. Do not give your money to a company without researching them first.
I hope this helps. I am not a high volume investor, but I have been paying attention, not getting too excited and doing my research. I know people who would give their right arms to have only lost the little bit that I have this year. And do not kid yourself, EVERYONE has lost money this year. If someone tries to tell you different, then they are either fooling themselves or just trying to fool you. Good luck again.
Al in NC
26|Jan|2010 2big brother sex tape
To learn the basics:
.
This is the website of Investor’s Business Daily.
Go to their website and locate the “How To Invest” section.
Click on “Investor’s Corner”, when the next screen comes
up click on “View Archive”. Read the articles in this section.
Some good books on the basics:
“How To Buy Stocks” by Louis Engel and Henry R. Hecht.
“Straight Talk About Stock Investing” by John Slatter.
“All About Exchange-Traded Funds” by Archie Richards, Jr.
Other good books:
How To Make Money In Stocks
Day Trading Stocks
Stock Picking
How Charts Can Help You In The Stock Market
Guide To The Markets
When The Market Moves Will You Be Ready
Open a brokerage account with a firm that allows online trading such as Scottrade and deposit funds in your account.
Once you open an account you will have access to the research sources available through your brokerage firm.
Familiarize yourself with your accounts trading platform before making your first trade.
Trent D
27|Jan|2010 3play spades online
i would suggest doing trades on paper, you simply research stocks and when you have found one that you feel is going to go up write down the name and price that you imaginatively bought at and then when you feel it is time to sell right that price down. Then find the difference in price as a percent to see how you did. This approach would be best since you really don’t want to be learning the ropes per say right now with your hard earned money at stake. Also read Way of the Turtle for basic trading strategy and/ or Ugly American which is a fiction novel which will provide little educational value on investing but is a great read based on real life investing
Alex
29|Jan|2010 4imprinted pens
Hey,
Try the below url:
For New visitors, it has extensive information available like:
How do I get started?
How do I fund my account to buy stock?
and Investing section gives information like:
How does the stock market work?
What are the risks and advantages of investing in the stock market?
How do I choose what to buy?
What are some tips for beginning investors?
You might be interested in reading this tutorial:—Get-Started&id=935472
Ed Atun
31|Jan|2010 5game system reviews
The Motley Fool is a group that writes a column on investing for the newspapers. (not my website) tells you what to do to get started. Go to to see where you buy and sell the stocks..
Math H
03|Feb|2010 6trade silver
Stock indication software and stock newsletters literally do all the work for you. I only know of one and the link is in the description…(not trying to spam or anything)
Brandon S
03|Feb|2010 7trade gold
I think the best way to invest in the stock market is to go with index funds. You cannot buy an index directly, but you can get mutual funds that try to go exactly with the index. The dow jones wilshire 5000 is the safest index fund out there because it is every stock in the United States. Check it out:
This mutual fund goes with the index as best as it can.
This is also a no load, no transaction fee mutual fund.
When the market turns bull again, I would put more money in some good bonds.
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