Guide To stock market for beginners

By Roy Steve

In todays world stock markets provide the fastest way to make money. The effort involved in making money on the stock market is literally zero. That said the risk involved is correspondingly higher.

For making money on the stock markets it is essential that you know the stock market lingo. It helps to know the basic terms as well as the basic understanding about how the stock market works.

The most important thing to learn is to make sure that you have the understanding of the stock market terms and the terminology. You should learn what is day trading and what is the settlement period. You should also familiarize yourself with various stock exchanges like the NASDAQ, NYSE and ASE.

Another major factor to learn is about the middlemen and the brokerages. As a new entrant you will have to decide what kind of brokers you would want to go with. There are brokers who offer discount as well as brokers who do not. Now these discount stock brokerages will not give you any advice for investing whereas the full service brokerages will give you full advice on investing. The fees definitely will be different for each one of these.

As an investor you should at the outset be able think about the kind of risks that you are willing to take. If you are not averse to risk taking then you can easily invest in more volatile stocks. On the contrary if you are more of a cautious investor then only invest your money in very safe defensive stocks.

The main point here is that you should be aware of your risk taking abilities

As a beginner in the stock market it is always better to first test the waters by investing small amounts in good selected stocks and that will help you make sure that you do not lose money initially - 23199

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Path for stock market for beginners is not very defined and you should know how does the stock market work