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A beginner's guide to investing in the stock market

Investing in the stock market can be exciting and challenging at the same time. Stock trading is exciting primarily because of the enormous earning potential, and it is challenging due to the many unique challenges that lay ahead. This article provides a beginner's guide to investing in the stock market.

What exactly is a stock?

Before putting your hard-earned money in the stock market, you should first acquaint yourself with the basics of the stock market and stock trading. A stock can be simply defined as a portion or a percentage of ownership of a particular corporation. An individual who invests and and holds stocks of a particular corporation is called a stockholder or shareholder. A stockholder is entitled to have a portion of everything that a corporation owns including real properties, investments and future profits.

How does the stock market work?

Mastering the stock market and its trends and systems require years of research and study. The stock market is a very complicated and sophisticated investment pit stop. Nevertheless, investing in shares can be made easier by professionals in the field of stock market trading known as brokers. Brokers A broker is a third-party who negotiates in the behalf of an investor. A broker makes sure that the investor is getting the most out of his/her investment by minimising risk and capitalising on fluctuations in stock prices. When investing in the stock market, it is important to minimise risk by diversifying investments and by not going with the flow. From the words of investing genius Warren Buffet, “be greedy when others are scared and be scared when others are greedy.”

Different types of stock market investors

There are three basic types of investors depending on how long they hold their investment, namely the long-term investor, the swing trader and the day trader.
Long-term investor From its name itself, a long-term investor holds an investment for longer periods of time, usually ranging from a couple of years to ten or even 15 years. Normally, long-term investors are people who are investing for their retirement or for their child's college fund. Swing trader The swing trader is an investor who holds stock investment for a couple of days to a week, hoping to capitalise on short-term fluctuations in stock prices. Day trader Lastly, the day trader is an investor who holds stock certificates only during trading hours. A typical day trader earns from the small changes on the prices of stock during the day.

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A guide to McDonald's stock

A guide to McDonald's stock

McDonald's is the largest fast food company in the world. Headquartered in Oak Brook, IL, McDonald's (stock symbol MCD) has over 33,000 restaurants in 119 countries. The stock is like any bellwether, moving more or less with economic trends. As it expands abroad, especially in China, it is affected more by the world economy and less by U.S. business. The stock weathered the financial crisis well, and is now on an uptrend.
A guide to Goldman Sachs mutual funds

A guide to Goldman Sachs mutual funds

Goldman Sachs International is a leading name in the world of investment banks. Established in 1869 by Marcus Goldman, Goldman Sachs stock trading services were brought into effect in the year 1928. One of the key services offered by this company is mutual fund management. This article acts as a guide to Goldman Sachs mutual funds.
What are stocks and how is the value determined?

What are stocks and how is the value determined?

Stocks are one of the major types of investments available, along with bonds, CDS, and real estate. Stocks are fractional ownership shares in a company. People can own stock in either privately held or publicly held companies. However, stock ownership in a publicly held company is much easier to obtain and the investment is much easier to cash out than stock in privately held companies.
How to choose online stock trading companies

How to choose online stock trading companies

A trader/investor needs his broking firm to provide him peace of mind, security and low rates. But choosing where to buy stocks is not easy. Many online share dealing companies out there seems reputed, and all set to welcome investors with tempting offers. So, how should a trader choose his online stock broker? Should he grab the best-looking offer or should he research before signing up. Well, he should research and here are the factors which he must research on before trading stocks online: