~*~*stock and shares for dummies*~*~

im the dummy :konfused: so can my fellow Guppies and guppans shed some light on this topic. i have heard now is a good time to invest. but have no clue where to start…

~~thnx in avance~ ~

Re: ~~stock and shares for dummies~~

The Stock Market Investing can be confusing, especially for the beginner. Getting some basic tips can help a beginning investor to make informed choices that fit their needs. Each person has a different goal when investing and that plays a big impact on how you invest. Investing is a rather touchy subject for most of the beginners because of the fact that they are intimidated by what they don’t know about it. But investing in the stock market is probably not complex, as some financial advisors believe. In fact, it is something that almost anyone and everyone can do. With that intact in mind, following tips can be useful to get started in stock market.

  1. Understand that there are no set rules for investing. There are no guarantees and no perfect way to invest.

  2. Make informed or knowledgeable choices. Before investing in any way you should completely understand how your investment will work and all of the details of the transaction.

  3. Make a simple plan to determine your goals and needs. This will help you to determine what investments to make and how much money to invest.

  4. Look at the value of the stock instead of the price. Low cost stocks may be low for a reason. Look at the whole picture. See why the price is low and if there is a possibility it may rise.

  5. Check the companies return on net worth. This is the profit after taxes divided by the net worth. It is important to see a trend of growing return on net worth.

  6. Spread out your risk. You should not put all your money in high risk stocks. Try some lower risks and some higher risks. This is the best way to protect your money.

  7. Understand the basics of stock prices. Prices move up or down depending on future projections.

  8. Keep on learning and discovering new things and plans about investing. The Knowledge is a key to success.

These short tips can help a beginning investor start investing in the stock market. These tips are just the beginning to understanding investing and how to maximize your return but you have to keep on learning.

While investing in stocks, it is easy to become distracted and lose focus. Maybe your stock has been going down recently and you are afraid of losing any more money. Maybe you have found another stock you are interested in buying, but you need to sell your other stock first. Maybe you don’t like the ups and downs associated with investing in an individual stock. In such a scenario, these simple questions might come handy while investing in the stocks:

  1. Is the money I invested “extra” money that I can afford to lose or at least hold on to through the rough times?

  2. Do I have additional money to invest if another opportunity arises or am I locked into one stock?

  3. Should I still buy the stock today?

  4. Should I consider investing in something that has less volatile price movements?

Source

Re: ~~*stock and shares for dummies~*~

^^thnx Mirch:)

Re: ~~*stock and shares for dummies~*~

Invest in mutual funds, XW&E is a hot pick these days.. :@:

hmm ok remember im a dummie :smack:

what does XW&E mean?

You are welcome. One last piece of advice. Do not accept any stock tips from people who are not experts, or you do not know personally. Even if you follow their stock tips , remember it is your decision , you can not blame them if the stock does not go in the direction they predicted.

:vivo: I knew some1 gonna ask that.. tubelights…

it is Xenophanez’s Welfare & Entertainment Fund.. :hoonh: invest in it and encourage others too.

Re: ~~*stock and shares for dummies~*~

@ Mirch. Well actually a friend told me tht it's a good time to invest in shares, after she just lost £150,000 herself:D yeah il remember tht:)

okk im a dummy(when it comes to shares) but not tht dumb :smiley:

hmm she must be loaded… :hmmm: so tell us (read ME) more about her.. :@:

Re: ~~*stock and shares for dummies~*~

lol......... was loaded

hmm well… it was worth a try.. :hinna:

hmm lost in CFD trading I guess.. :chai:

Re: ~~*stock and shares for dummies~*~

so where so people go to buy Shares?

Re: ~~stock and shares for dummies~~

^ Argos… :chai:

PS: from Stock brokers, where else.. :hoonh:
PPS: I think you should stay away from share market.. :chai:

haha very funny!

can i ask y?

HowTheMarketWorks.com - FREE Stock Simulator!

Play here with virtual money first or find one yourself for London Stock Exchange.

Re: ~~*stock and shares for dummies~*~

I will start making dummies guides to stock market, types of investment, business planning, credit cards, credit score, bankruptcy .. .. starting from next week for the business forum.

p.s i would suggest to transfer this thread to business forum !

Re: ~~stock and shares for dummies~~

wow i was gonna spend all my life savings on shares..:cb:

Re: ~~*stock and shares for dummies~*~

^^
Sounds like that you are perfectly capable of doing that. :)

You seem to be getting advice from the not so right people regarding that it is a right time to invest.

Next thing your friend might be telling is that there is a bridge on sale.

Re: ~~*stock and shares for dummies~*~

For shares... educate yourself this year... Things might start getting better in 2010.