What is the first thing i should know about investing in stock market?

Question

this is my first time ever investing and i need tips on how to get money

Answer 1

There are four major items that one needs to properly and sucessfully invest and/or trade securities

1 - A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself.

2 - Sufficient trading/investment capital.  Use your own money, there’s no need to go into debt so that you trade/invest.

3 - A written money management program in place.

4 – A full and complete understanding of the rules & regulations of the industry.

Here are some books you could read

The first book you should read is Rich Dad Poor Dad by Robert Kiyosaki

Then try some of these

What Works on Wall Street by James O'Shaunessey

Beating the Street by Peter Lynch

One Up on Wall Street by Peter Lynch

The Warren Buffett Way by Robert Hagstrom

How to Make Money in Stocks” by William O’Neil

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance.  (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )

While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why.  This site has some basic information for beginners. If any site offers free information, take it.

Other website that can provide instructions and help with procedures and terminology are

Investopedia - http://www.investopedia.com/  Stock Charts - http://stockcharts.com/

http://www.investorshub.com/  http://www.1source4stocks.com/



Visit some of the more professional websites like Zacks - http://www.zacks.com/

Smart Money - http://www.smartmoney.com/  Schaeffer’s – http://www.schaeffersresearch.com/

Some of these web sites will have advertisers who are worth looking into also.  And remember, if they offer free information, get it..

The last thing you need to do is to open a brokerage account

Don't take investment/trading advice from anyone who is not investing and/or trading

And don't let anyone tell you not to invest.

Good luck,  study hard and you'll invest even better

Answer 2

Make sure the money you invest is money you can afford to throw away.

Stock market is up and down.  Prepare for the long haul, and diversify your portfolio.  Don't put all your eggs in one basket.

No one makes money on day trading.

Answer 3

That shares go down as well as up

Answer 4

Learn the basics. spend time on learning companies and shares. If you can learn the history of companies, their track record and dividend announcements it will help you in investing money. Find branches of economy which is expected to do well. Stock market needs good calculation. dont put money here to gamble.

Answer 5

You should know that it is very easy to lose money.

You should read some books before investing.

Answer 6

The first thing you need to know is you could loose all or some of ur money.

Next useful things:

Choose a good online broker (if u are planning for online trading).

Try invest invest in Big companies when they dip and which gives dividend.

Reinvest the Div money on the same stock and Look to invest long term min 3-4 years (consistently buying that stock when u have money)

Answer 7

The biggest enemies of being successful in stock trading are;

A.     fear

B.     greed

C.     indecision

D.     lack of education (read as much as you can, always)

E.     wishing, expecting, hoping, belief (working on a "feel")

F.     not having an exit plan when you take a position

G.    not using "position sizing"

H.     not treating losses as job #1 (being mostly concerned about getting the big winner).

I.       not realizing that good stock traders are happy with win/loss rates of 40% - 60%

J.      using "tips" of what stocks to buy (getting "tips" from friends, TV, Radio, Magazines, Relatives, Web etc is the worst way to make investing decisions).

BTW: Many people make money day or swing trading.  It takes at least 3-5 years to maybe get to that stage.  People that swing or day trade are constantly educationg themselves. It's a "job" with a lot of hard work and long hours.

It's also (for me and others).... a passion.

If you're looking to trade.... here's a video I watch every trading day.

http://www.alphatrends.net/