Saturday, February 26, 2011

Get A Stock Market Dictionary To Crack The Code


A stock market dictionary is worth its weight in gold to the new investor. There are very few industries that have as much complicated terminology and jargon as the financial markets and if you are going to make the grade you really will benefit from having a stock market dictionary at hand to refer to.

It's not just the jargon and terminology either there are all the various abbreviations that are sprinkled around like confetti to think of as well. Of course part of the reason is the undoubted complexity of stocks and shares but there is just that sneaking suspicion the new investor will have that it is to keep the uninitiated out too. So getting a stock market dictionary will help to even out the playing field.

The great advantage of some of the very latest dictionaries is that they are grouped around particular subjects rather than laid out in alphabetical order like an ordinary one. That is a feature that you probably won't fully appreciate until you have had the pleasure of using one of them. Or alternatively you have made yourself dizzy flicking backwards and forwards in one of the older style ones!

So do you really need to have a stock market dictionary? No but once you have got yourself a good one to help you fathom out the impenetrable terminology you will find that your investing life becomes so much easier than before. More especially so if you have chosen one of the latest style ones. One reason for this is because with all the abbreviations that the financial markets use you can sometimes find that you are looking for the wrong definition. That could be a major problem when your investments are at stake!

Of course this is the age of the internet so as an alternative to books you can search for financial and stock market terminology online. The important thing to bear in mind with this is that you should only use reputable and trusted sources. Remember that the 'net is unregulated and anyone can put up a site without bothering to check their facts.

Of the two choices I much prefer having a book if only for the peace of mind that it has been checked professionally. But either way my advice is if you are a new investor and serious about learning the jargon you really can crack the code with a stock market dictionary.

Sunday, February 13, 2011

How Do I Get Started In The Stock Market


A frequently asked question is "how do I get started in the stock market?" as more and more people look to provide themselves with a better financial future. For any new investor there many different answers to the question "how do I get started". In the stock market there a large number of different options to choose from. A good place to start is by considering if you should be investing at all.

Before asking "how do I get started in the stock market" a better question might be "how much can I afford to lose". A quick dose of reality for some I'm sure but a very necessary one. That is because the truth is that even the most prudent investments carry a degree of risk with them. If you don't feel comfortable with the possibility of losing your money then it's more than likely that the stock market isn't for you.

The next step in getting started is to make certain that you understand the need to leave your money invested for a reasonable period of time. That should really be no less than five years in spite of any overnight success stories you may have heard. Markets fluctuate and at times they can be very volatile. If you need quick access to your cash you are always going to be at risk of needing to withdraw at the same time as a price crash. That being the case only risk money that you can afford to leave invested.

Assuming that you feel comfortable with your risk level and the length of time you will need to tie up your money for you can begin to choose how to get started with your investing in the stock market.

You have a couple of choices. You can either make your own decisions on where to place your investment money or alternatively get a professional to do it on your behalf. Whichever one you decide on it is always a good idea to paper trade first. That is where you decide on a particular stock and only place the order on paper. This will help you to see if you are happy with the market fluctuations as well as with the types of choices either you or your adviser made.

Take all these steps and you have the answer to your question "how do I get started in the stock market?"


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Sunday, February 6, 2011

Beginners Guide To Investing


Any beginners guide to investing is by its very nature a basic guide but it is important that anyone new to investing gets a few key points clear before they start. So in this beginners guide to investing we will cover some of the essential points, but please keep in mind that investment in the stock market is a complicated and potentially risky business.

One of the very first things to cover is the need for every investor to work out for him or herself a level of risk that they feel comfortable with. For some they will only sleep well if they are almost risk free while others are equally comfortable with some of the riskiest options known to man. Just remember that there is no right or wrong, there is only right for the individual concerned.

As part of assessing your own comfort level you will want to feel comfortable that you can afford to risk losing the money that you are planning to invest. Obviously you don't want to lose it but if you absolutely can't afford to then you should look for something which carries a significantly lower level of risk.

Likewise it's important to feel comfortable knowing that you should be investing in the markets for the medium to long term. That's generally regarded as 5 years plus. If you need ready access to your money then go for something which won't be as easily affected by outside events. While markets fluctuate and at times quite wildly they do tend to rise over time but that won't help you if you need to get your hands on your cash the day after tomorrow and the market's in freefall.

As with anything else it's vital to understand the rules of the game and how they apply to the position you are planning to take. For example if you don't understand stock market terminology you shouldn't even think of investing. Even with a helpful stock broker it would be foolish to risk your hard earned cash by investing in something you don't fully understand. There are plenty of good stock market dictionaries that you can find either online or as a printed book.

Once you've got an idea of the terminology you might want to consider paper trading even when you're getting a broker's advice. That way you will begin to get a feel for how things operate for yourself and that's by far the best beginners guide to investing.

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