Stocks For Beginners
What stocks to buy now now?
Buying and selling stocks is something that even a finance novice does these days. Considering it is one of the simplest ways to ensure a growing profit at a steady pace, people across the United States and other parts of the world find it very convenient to earn a good living.
The fact is, in order to decide which stocks to buy or sell and which are the investments that would yield maximum profits without hurting your pockets much, you need to understand a few basic points very clearly:
What are stock exchanges and which are the exchanges where one could invest in the United States?
Which stocks are performing very well at present or have shown a positive growth trend in the past 3 to 6 months? These are the stocks you could buy for a lesser amount and sell for a higher amount.
Which stocks are under performing and may be suitable for buying at present and selling at a later stage when their share prices go up?
What other things besides equities that you could buy from the share market? For instance, investments such as mutual funds, gold, silver and other commodities that you could trade as well.
What is the minimum rate of capital or finance that you need to start trading in the share markets?
Which is the best time to withdraw all the profits that you earned by buying and selling shares and vice-versa, likewise?
What is a recession? and how not to fall into the trap? What are some precautions that you must take in order to not to get into a crisis situation?
How should you buy the shares, yourself or by using brokers and other agencies?
Which are the topmost agencies offering consulting services in the United States?
Who is responsible if your losses are huge?
Of course, besides the above 10 factors, there are many more minute details which you must consider before getting ready to purchase and sell stocks. For instance, if you are hiring a broker or an agency, you must start with a smaller amount to understand how the market works and then gradually increase the amounts that you invest.
Let us answer the above questions one by one.
Online Stock Trading What Stocks To Buy Now?com Stock exchanges are authorized markets in which securities or equities and commodities are bought and sold. It is in short, a trading platform to buy a share at a lower price and sell the same for a higher price OR sell a share for a higher price and buy a share for a lower price. In both these situations, the investor experiences profit. Who could be the investor? Well, it is just about anybody above the age of 18 who is authorized to do so and has an income of their own. The investor can be anyone who is willing to enjoy the benefits of share trading as well as take responsibility of losses incurred in this process.
To be upfront, nobody who has ever traded in the stock markets has experienced an “Only Profit” situation every day. Thus, when you invest in the stock markets, be ready to experience the feeling of losing money. Depending on the no. of shares, at times you could enjoy huge benefits, which is very easy and preferable. After all who does not want to make profits? However, it is not very easy to accept losing out on large amounts of money, so one needs to be very steady emotionally in both situations.
In the United States, there are two main exchanges besides sev
eral others which are approved and authorized by International Securities Exchange to conduct trading activities, the New York Stock Exchange, also known as and NASDAQ, National Association of Securities Dealer Automated Quotation system. The NASDAQ was founded in the year 1971 while NYSE was founded in the year 1817 in Wall Street, New York. As on date, NYSE is the largest securities exchange platform, which is used by investors worldwide. In fact, how the world economy falls and rises is calculated solely on the basis of how NYSE performs. Apart from NYSE and NASDAQ, there are several small exchanges in the US such as Chicago Stock Exchange, and so on, however, NYSE is the most popular and safest place to trade.
The basic question is, what are shares? and who owns them? The answer is, Shares are a percentage of profit which a company is willing to share with the public. This way, when a share performs well in the market, the company earns more profits and is able to share the same with its buyers easily.
In order to understand which stocks are performing very well, one needs to either seek expert advice or check the websites which provide specific information. Here is where one needs to conduct vital research and come up with the right shares to buy or sell. For instance, at whatstockstobuynow.com, they endeavor to provide customers with this vital information on a daily basis.
As per expert research, some of the best performing stocks by far in 2015 have been Microsoft, Apple and Google besides several others. However, it must be noted that the prices of their shares have been fluctuating month by month and the growth has not been consistent.
Stock Profits So now, the question is, if you are a beginner, how do you find the correct stocks to invest on? The simple solution is to hire a broker or a consultant from some of the leading stock brokerage companies such as Citibank, Fidelity or Merrill Lynch. Even within these companies, they may have separate divisions for different products.
Other than company shares or equities, you could also trade by buying and selling commodities such as Gold or Silver. Quite obviously, for commodity trading, you need to invest higher amounts of money.
Thus, now comes the most critical point, what is the amount you should invest as a beginner? Brokers may initiate you into investing thousands of dollars because only then they will make big commissions but as an investor, one must be careful not to get led by brokers and first learn how the share market works by investing smaller amounts.
For instance, it is a good idea to start by investing $500. Although the brokers may tell you it is too less, stand by your budget and observe how the profits are made every day by the brokers you assign the trading job to. Once in a week, sit with them and understand how they buy and sell shares, on what basis and also do a thorough research yourself to understand stock brooking clearly.
Once you are confident, you are good to go and you can start trading at higher amounts.
Of course, if you are ready to invest a huge amount of money at the beginning itself, you could buy and sell futures and options, wherein you buy bulk amounts of shares from a single company and enjoy huge profits when the share prices go up.
Type Buy Sell However, please remember that you may experience huge losses if the shares your brokers bought do not do well, so ideally, starting with smaller amounts and then gradually increasing the amounts you invest is a good idea. Besides, ensure that you aim for a steady profit of say 10%-12% every month to begin with and do not become over-ambitious. To be an investor in the stock markets, you do not need any special qualifications. Anybody can do so if they are above the age of 18 and have the money to start. However, what is more important is having a balanced approach to making profits and investing consistently and persistently.
At times, you may buy a share and sell it only 6 months to a year later. Similarly, at times, you may sell a share for a lower price because you want to buy another share which might make you triple profits. Thus, buying and selling stocks is a job that requires attention, time and diligent effort in getting used to the fluctuating situations every day. Nonetheless, if you observe buying and selling trends carefully for 6 months to 1 year, you will be able to learn the tricks of the trade faster and make steady profits every month.