VIEWS: 30 PAGES: 1 POSTED ON: 11/20/2009
How Do I Start Investing In The Stock Market Everyone has heard of the stick market, and just about everyone has heard of the thousands of people who have “gotten rich” by making wise stock market investments and cashing in at just the right time. However, there are still a great many people who have yet to start preparing for major life needs (such as retirement) out of fear of the unknown; those folks often put off investing because their major thought always seems to return to the basic question, “How do I start investing in the stock market?” As with most things in life, getting started is really the hardest part. It takes a bit of work – researching how the market works, what the different terminology means, what kinds of companies you are interested in, what your life goals are, and so on; it also takes a small leap of faith to actually send that first bit of money off to the investment world. So, the first step in answer to the question “how do I start investing in the stock market” is to make the decision to do so and also take any necessary actions to keep yourself from backing out. After deciding that this is what you want to do and getting a decent book or some online articles to read, the next step is to set up an account. There are two ways to go about doing this. You can go online and join one of the many discount brokerage houses that are readily available. Many have very low fees, but you won’t get much (if any) advice about what to do or when; all you will really get from an online discount brokerage house is a “holding place” and official way to carry out business. What you invest in, when you buy, when you sell, and so on will be decisions only you make. The other way to get set up with a vehicle through which you can trade stocks is with a traditional, professional stockbroker. There tend to be commission costs and other fees associated with doing business this way, but for beginners, it may be the right way to go. You can bend your stockbroker’s ear and use him or her for advice and concerns as well as just a way to buy when you say and sell when you say. Once you have decided to become an investor and chosen either a discount brokerage house or a traditional stockbroker, it is time to decide on an investment plan. You should take a good look at your available resources, your financial goals, and the amount of risk you are willing to take on. With general plan in hand, you start looking into which stocks you would like to buy. You can do this in a variety of ways, from observing people’s buying habits at the mall to inspecting detailed financial records of a particular company. Then, you should determine your buy and sell limits. That means you should decide how much you are willing to lose before you sell and how much profit you think you should be able to make before a stock’s value begins to fall. Then, the easiest part comes along. Call your broker and start buying.