Investing In Stock Market For Beginners: understanding the basics of how to make money with stocks

Investing In Stock Market For Beginners

Understanding the basics of how to make money with stocks

Neil Hoechlin

http://bit.ly/neilhoechlin

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INTRODUCTION

Every form of trading most always follows a similar pattern. A trader buys low, sells high, keeps the profit, keeps customers satisfied, and keeps a record. Trading in stocks is also a just the run of the mill form of trading in this regard. The only difference is that you don’t have to do the trading yourself. Sometimes, people do it for you with your money but you must always have knowledge of what to buy and sell, and at what price you want to sell them.

Usually when you trade in goods, you go through a process of acquisition. This includes the logistics of transporting your goods to where you want them, storing them, and sometimes, transporting them to your buyers; all of which you have to be involved in. Trading in stocks does away with all these operational details as stocks are not tangible objects. You simply acquire your stocks, and you have a figure with your name beside it as evidence that you own them. You don’t need to transport them and you don’t need to store them in the warehouse. These days, you don’t even need to leave your house or contact the buyer before you sell. You simply look at the value of stocks you want to sell and sell them with the click of a mouse.

Stocks, also known as company shares, are one of the most popular kinds of investments. They are higher in risks than other forms of investment like bonds but are also usually higher in returns. Therefore, it is advisable to have a considerable part of your investment in stocks. If a company is doing well, you want to take part in their success. Stock prices tend to fluctuate based on supply and demand. You can make money by an increase in a stock's share price or if a company pays a dividend.

This eBook shows you the fundamentals of investing and trading in stocks. Whether you are trying to increase and accumulate your money for future use, or you are looking at making some money in the short term, this eBook will be of help. It has been written in a very simple way to describe what the stock market is all about, what to know before you invest, and how to invest.

What are Stocks?

A stock is a partial ownership investment. Also called shares, stocks are the parts in which the ownership of a business entity has been broken down into. These parts are then sold to people who can buy them and therefore, become stakeholders to the business entity. They contribute in a limited way to decision making based on the size of their shares and also share in the profits of the company in form of dividends.

Think about a business entity as a cake sliced up into