Guide To stock market for beginners

By Roy Steve

In todays world stock markets provide the fastest way to make money. The effort involved in making money on the stock market is literally zero. That said the risk involved is correspondingly higher.

If you are a new person who is entering the stock market for the first time then it is imperative that you should understand a few basics before you can even think of investing your money in the stock market.

The most basic thing to understand is to make sure that you have the knowledge of the stock market common terms and language. You should have the knowledge of what is day trading and what is called the settlement period. You should also get to know about all the stock exchanges NASDAQ, NYSE and ASE.

Another major aspect to learn is about the brokers and the brokerages. As a beginner you will have to decide what kind of brokers you would want to go with. There are discount brokers as well as full service brokers. Now these discount stock brokers will not give you any investing advice whereas the full service ones will give you all sorts of advice on investing. The fees definitely will vary for each one of these.

Knowing your risk profile will help you make sound investing decisions. For low risk invest in defensive stocks whereas for high risk and high gains invest in volatile stocks.

Understanding your risk profile is very important and that ability will usually come from the fact that as a beginner how much of extra money can you afford to lose.

As a stock market beginners selection of the good stocks to make money is very important. - 23212

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Investing for stock market for beginners is not easy and you should know how does the stock market work