Stock Market for Beginners

For those who are new to Stock investing, here are some basic knowledge. The stock market is nothing but a platform where shares of publicly traded companies are bought and sold. A share of stock is a claim of ownership in a given company: if you own a share of stock, you are entitled to a return on your investment if the company is profitable.

A publicly traded company is one where the shares are sold to the anyone who wishes to buy them, as opposed to a private or a family company, where the shares are not sold to the public at large.

Many people get involved in the stock market expecting to make a fortune in a short amount of time. Those are the people who fall for the first get-rich-quick scheme that is offered to them. Very educated people have entered the stock market and failed miserably. If you think making money in the stock market is going to be a walk in the park, you are mistaken.

Another good rule about the stock market for beginners is the need to diversify your portfolio. Simply put, your likelihood of losing money decreases as you invest in a broader spectrum of companies.

You're essentially looking for signs of when to buy or sell a stock. You can't be emotionally attached to your portfolio. That's pretty much the mindset that will lead you to success while you're soaking up more and more knowledge about the stock market.

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