Question by John S: What is an easy way to learn the stock market and how it works for someone that has never invested before?
What is an easy way to learn the stock market and how it works for someone that has never invested before.
Best answer:
Answer by JB1977
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.
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