For many people, the thought of buying into stocks and shares is incredibly daunting but for those with strong hearts and courage, buying your first stock is easier and quicker than it’s ever been before (although there are still some inherent risks associated with this method of making money). If this is the first time you are looking into doing this, and consider yourself a first-time investor, then you will need to thoroughly prepare yourself both mentally and academically.
You’ll discover how to invest in equities, selecting the right stock, and finally, making the transaction itself. But in the past, when things were a little more stuffy, you would have needed access to a stockbroker and a reputable printed paper to advise on stock picks. These days there is a plethora of informative, fully loaded websites that can give as much information as you could ever ask for.
There is also a huge range of websites that claim to know everything but sadly are misinformed too, so ‘beware’ is the motto of the day! They are often well written, professionally produced and look really slick – so they often convince people they are genuine, this is why it’s important that you really understand and know where to begin.
Step 1: Selecting Your Stocks
The first rule is to remember this magical phrase: There is no such thing as a guaranteed stock pick.
Only a very few totally unbiased, and reliable sources and publications really exist.
Some of the top financial publications are really the only major sources that are widely respected and trusted for market news and analysis.
Want to learn about finance but don’t know where to start?
Step 2: It’s Time To Analyse Your Stocks
Yep, this is the section that requires some effort and due diligence on your behalf. It is understandable you would rather take the easy road, but there is no quick way to profit.
Step 3: Decide How to Invest
You can choose to invest directly with a company or through a broker. Brokers are divided into two categories – a full-service broker and a discount broker. As long as you stick to trusted sources you will be OK. Sometimes, sadly, there are some unscrupulous companies out there who claim to be brokers, and are actually scam artists who will gladly take your money and not even invest it!
Step 4: Invest
Well hopefully by now you’ve done ALL your research. I mean it. If you haven’t then don’t make any rash decisions. Countless people have literally wiped out their savings overnight when making poor decisions.
If you are looking forward to generating some extra money, besides your main job, then stock trading is your best option. Since trading stocks is not actually rocket science, it is quite easy to start with. However, it is critical that you master the fundamentals in order to accurately identify stocks that can generate profits through trading.
Nobody can be expected to be optimistic from the start. It is a reality that everyone has lost money while trading; otherwise, the entire stock trading system would not exist. As a result, one should not be discouraged by losses, as learning from mistakes is the most effective approach to learn. This is the only way to prosper in the world of stock trading. This, however, may be entirely ignored by being well-trained and following the correct instructions.