Odds are, if you are new at trying something-- everything
from tying your shoes to performing surgery. Like everything else you could
possibly do, trading stocks take practice. You won't be good right away and
that is perfectly acceptable.
That being said, Mistakes are to be anticipated, but the
mistakes are with your money. You must be careful with how fast you jump into
the stock market ocean; too quickly and you have a high chance to lose a lot of
your well-earned money, too quickly and you might lose your opportunity to
obtain the perfect stock at the perfect price.
There are tons of Variables that go into purchasing,
selling, and trading stocks that many people don't think about when they enter
into the game. Luckily, you were smart enough to download this publication
before diving in head first.
The first chapter covers the basics that everyone needs to
know when they first enter the stock market. The sections are divided up into
commonly asked questions to help you, the reader, find the answers or
information you're looking for.
The first things first..
What are Stocks?
The companies offer up little pieces of ownership (called
stocks) to anybody who wishes to buy them. Whenever someone buys stocks, the
provider is then allowed to use that cash to do with as they please (usually
this money goes to products, or property, or other assets the company should
grow).
Two basic things Happen when someone invests in a business
and buys stock:
1. The buyer legally owns a small portion of the company
a. Usually, a single stock is worth very, very little of
their provider's overall ownership.
b. Rather than “owning some of a company," the buyer
owns stocks in said business.
2. The company or business profits money from the sale to
utilize to improve their company.
What exactly is the
Stock Market?
The stock market is a General term used to define a place
(either a physical location, or a digital server) where shares are sold,
bought, and traded. Where many first time investors become confused in the
terminology involved.
For example:
● An investor is someone that buys stock in one or multiple
companies.
● A stock exchange is a term used to describe anywhere that
deals with stocks and the trading of stocks.
○ This expression is often used when teaching individuals
about trading stock in a stock exchange, but can also be used to describe the
whole process of trading stocks.
● A stock exchange, on the other hand, is a particular
location that deals in the buying, selling, and trading of firms' stocks.
To help you keep these terms straight in your head, consider
when you go to get pizza for dinner. If you say “I’m going to get pizza for
dinner," it allows people to know what you're doing, but does not tell
them the details. Anyone listening understands that you are going to get a
pizza from somewhere. Saying” I’m going to get pizza for supper" is
equivalent to the stock market. It's a general statement that tells people
essentially what you're doing in a nutshell.
If you were to say “I am going to Domino's to pick up a
pizza," you're telling anyone that's listening what you are doing and
where. Domino's Pizza is the stock market you choose to use.
Just Remember:
The stock market is overall, the stock market is specific.
The stock market as a Whole allows companies to put
themselves out there to the general public. This creates a type of mutually
beneficial (or mutually destructive) relationship between the company and its
investors.
What is a Stock
Exchange Then?
Stock exchanges are the Individual places that a person may
buy, sell, or trade stocks. While the word “Stock Market" refers to the
industry, as it were, of purchasing, selling, and trading stocks, the trades
which make up the stock market are the veritable storefronts of their stock
trading world.
Some stock exchanges are common in media such as film and
television shows to show the hussle and bussle associated with the business
world. The most commonly named stock market is the New York Stock Exchange
(also called NYSE or “The Big Board"). The New York Stock Exchange is the
largest stock market in the world and more than 1.5 billion dollars can be
bought, sold, and traded via the New York Stock Exchange daily. Whenever a
movie shows crowds of men and women in suits yelling and waving papers around
in a room full of television monitors, they are usually depicting this specific
stock exchange.
While a large Percentage of the larger stock exchanges (the
New York Stock Exchange being a prime example) are trying and fast-paced and a
little over the top for anyone who has not made a living out of trading stocks,
there are alternatives for any person just wanting to dip their big toe, so to
speak.
A relatively recent Form of stock exchanges is the online
stock exchanges, which can be any held through a site or internet domain. They
often times require a subscription fee to use their services, but provide a
much more relaxed environment for anyone just starting out.
Are there risks involved with online stock exchanges? Of
course there are. There's still that looming risk of losing money through poor
decisions or plain old bad luck, but there isn't the stress and fast moving air
most people associate with buying, selling, and trading stocks.
In either case (whether you would rather go into a physical
place to trade stocks, or decide to stay home and do it on the computer), you
will find tons upon tons of choices to select from. Each stock exchange
functions the same, less or more, with a few tweaks to rules, subscriptions,
and other details here and there, so if you can learn to use one, you probably
will do alright with others.
Concerning physical Location stock exchanges, it depends on
where you live or work. You'll need to do some research regarding the
surrounding regions to find out what's available to you. You can also find a
stockbroker.
A stockbroker is someone you pay to buy and sell stocks for
you. And don't worry, he or she'll have your best interests at heart because,
after all, the more you create, the more he or she makes in the procedure.
If you would rather Dive into the world of online stock
market, there are still lots of options to choose from, and chances are you
have seen a commercial for one or two over the last few years.
Commonly used and popular online stock brokerages to use in
the best stocks to invest in:
● Scottrade
● Tradestation
● Etrade
● Ameritrade
● And others.
You'll have to look More into the details of every
individual brokerage to find one which fits your needs best (never just go with
the first one you happen upon, constantly compare).

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