Stock Market For Dummies and Beginners: How to Learn Stock Market Basics

Investing in the stock market is one of the most fruitful ways to build wealth over the long-term, but making money on the stock market is another task. The stock market requires understanding before you put your hard-earned money and start making profits. In this article, we’ll give you an insight into the stock market basics and what stock investing for beginners and dummies entails.

Stock Market Basics

In the US, the stock market is made up of exchanges, like the Nasdaq and the New York Stock Exchange. Stocks are posted on a specific exchange, which brings sellers and buyers together and acts as a market for the stocks. The exchange tracks the demand and supply, as well as the price of each stock. However, you can’t buy a share directly from the exchanges like you purchase goods at the grocery store. You need to go through a broker. This broker will represent you and deals with the exchange on your behalf.

Stock Investing For Dummies

There are high probabilities that newbie will get lost in this ever-changing, and fast-paced market; therefore it’s imperative you ask yourself these question before you start trading. Are you trading for additional income? What are you looking to accomplish on a quarterly or annual basis? We’ll advise you that whatever goals you first set, divided them in half so that they are achievable. If you make goals that become tough to reach, you may end up getting frustrated out of the market.

Stock Investing For Beginners

There are hundreds to thousands of companies you can invest in on the stock market, but it’s good to start with a company you already know something about. Research your choice and make the best decision you can, don’t second-guess yourself. Stick with your choice for a while and see how it performs over the years.




Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.