Investing in stock market it’s no joke. Before you engage in such an adventure, make sure that you are ready for all the challenges you’ll definitely have to face once you begin trading in stocks. When you decide to invest, be aware that it is a process, and not a single event. You will need to dedicate some piece of your time to that business, and not just leave all of the decisions to your broker. Consider the pluses and minuses of the stock market world, and decide do you want to embark in that world.
Analyze your financial situation
Whenever you invest, you expose your money to some level of risk, no matter how minimal it is. There is risk involved no matter what you do with your money, and that is the essence of stock market business. A stock you buy might go up or down in price (“fluctuation”). Stocks are volatile by their nature, and that’s part of the risk of investing in stocks. Having that risk in mind you should always have some cash “on the side” so you can access those funds quickly if something happens and never invest all of your life savings.
How much do you want to invest
This is a highly personal decision and it depends about the previously discussed, meaning your financial situation. You should never invest money that you’ll be needing in the near future. Discuss with your broker about your financial situation, and ask for advices.
How to choose the right companies
When you’re choosing which stocks to invest in, most strategies can fall into one of two categories growth stocks and dividend stocks. The basic idea behind a growth stock is that you want to buy it when it’s not worth much and then sell it when it’s worth a lot, or to say it in the stock market language: “buy low, sell high”. A safer way to make money on stocks is to invest in a company that pays dividends. Some companies have reached their plateau in terms of growth. You might see some increase over time, but the real advantages of these stocks are their stability and dividends. Buying into a media-hyped situation almost guarantees you will buy a stock at or near its peak. The only way it can go from there is down. If you opt for an online brokerage, don’t be afraid that you’ll be deprived from a good broker advice. Online platforms like can be really helpful. For example, Equity feed features reminders of important changes on the market by doing different researches, for example on the impact of social media campaigns on the product popularity and stock growth.
Simulate before the “real deal”
There are many fantasy stock trading games. Although they are just games, they provide good platforms so you can learn how to manage in stock market. It is a good exercise for you to get “in spirit” of stock trader. Simulator trading games use real time market conditions. If you join these online communities, you’ll be able to trade stocks just like in the real world. The big and important difference is that you are only investing virtual money. After some time of studying and practicing the basics of stock trading, you should be ready to buy stocks and invest real money in the market.