Invest In The Stock Market: Getting Started
7:55 AM
Even in the rough economy, there are many who want to learn how to invest in the stock market. Though it may seem scary, starting now is not a bad idea since there are many good deals to be had.
Investing in stocks can be risky, but the key is only to invest when you can. Do not invest every month unless you are financially able to do so. Some consumer services will allow you to set up automatic withdrawals from your checking or saving account to your stock or money market account. Do not sign up with this when you are first learning how to manage your stock account. You could end up losing a lot of money by investing too much money early on.
Don't rush into investing. Don't put large amounts of money in the market right away until you know what you are doing. You can start investing with very small amounts of money (even less than $100), and get a feel for how investing works.
You should start by researching companies that can do well in a recession such as food companies. In a recession, many stocks take a huge hit so you want to find a stock that can weather the ups and downs of the economy. You do not want to buy stocks that are more than a few dollars at first because you will have a b etter return for your limited investment of one hundred dollars.
Checking your stocks every day will make you crazy. The market is always up and down from day to day, you want to examine long term trends. Check every few weeks or even every few months. Keep a cool head when making buying and selling decisions, and you should do well.
You should have a diversified stock portfolio; do not invest in just one company or industry. This will allow you to have a good mix of stocks in case a certain industry or company has a rough time.
As you can see, investing in the market takes a lot of discipline and consistency. Find your own asset allocation and investing strategy, and stay with it. Make sure you are always learning more about investing as you go along. Never assume you know everything. With that being said, don't let your lack of knowledge stop you from opening a brokerage account today and getting started. Have fun, and best of luck with your investing endeavors
Investing in stocks can be risky, but the key is only to invest when you can. Do not invest every month unless you are financially able to do so. Some consumer services will allow you to set up automatic withdrawals from your checking or saving account to your stock or money market account. Do not sign up with this when you are first learning how to manage your stock account. You could end up losing a lot of money by investing too much money early on.
Don't rush into investing. Don't put large amounts of money in the market right away until you know what you are doing. You can start investing with very small amounts of money (even less than $100), and get a feel for how investing works.
You should start by researching companies that can do well in a recession such as food companies. In a recession, many stocks take a huge hit so you want to find a stock that can weather the ups and downs of the economy. You do not want to buy stocks that are more than a few dollars at first because you will have a b etter return for your limited investment of one hundred dollars.
Checking your stocks every day will make you crazy. The market is always up and down from day to day, you want to examine long term trends. Check every few weeks or even every few months. Keep a cool head when making buying and selling decisions, and you should do well.
You should have a diversified stock portfolio; do not invest in just one company or industry. This will allow you to have a good mix of stocks in case a certain industry or company has a rough time.
As you can see, investing in the market takes a lot of discipline and consistency. Find your own asset allocation and investing strategy, and stay with it. Make sure you are always learning more about investing as you go along. Never assume you know everything. With that being said, don't let your lack of knowledge stop you from opening a brokerage account today and getting started. Have fun, and best of luck with your investing endeavors
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