We all look at the stock market with a mixture of fear and admiration. We love the lure of big money and a potential fortune. Yet, at the same time, we are worried about the horror stories of bankruptcy and lost shares. The good news is that there are plenty of safe and sensible ways to invest in the stock market. If you’ve got a small pot of money and an urge to invest it, keep reading. We’ll show you the basics of getting started in the complex world of stocks and shares.
What exactly are shares?
This is always the first question from the uninitiated, and it almost feels silly to ask! Don’t worry, it’s a perfectly understandable question. It forms the basis of all stock market investments. When you buy shares, you are buying a percentage of the company. Let’s say you bought shares in Apple, you would then become a part-owner of the company. When the company does well, profits rise, and so does the value of the company. When the value of the company grows, so does the price of your shares.
Playing the long game
Stock market trading is often characterised by high-risk investments on the stock exchange floor. We’ll come to that in a second, but that is not always the best route. Instead, a good investment is all about a long-term strategy. In general, the stock market always goes up. If you invest for a period of ten years or more, you’ll ride out any dips. The market rises faster than interest rates, so it’s a better place to put your money than savings accounts.
Day-trading is what you imagine when you think about the stock market. It is anxious stock brokers buying and selling shares at a rate of knots! The trick is to speculate the rise and fall of share prices. You’d buy shares when they are low and sell them at their peak. There are large rewards to be had playing this game. Of course, the losses can be very high too. It’s a risky tactic, but it is the most lucrative form of investment. If you’ve got the nerve, why not try it?
Making it a career
Once you’ve gotten the hang of the stock market, it can become a decent money spinner. There is every chance you can turn this into a career as a full-time investment banker. If you want the successful investment banking lifestyle, discover how to be a successful investment banker from Geoff Blades at Wall Street Teach. Stick to your instincts and never stop learning; that’s the key to making a career from investing.
How do I get started?
If this information has stoked the fire inside, you should start small and learn bit by bit. All investments must go through a broker, so start by finding the right one for you. It could be a financial adviser or an online brokerage service. Start with small amounts and get a sense of what market forces have an effect on your money.
That’s all there is too it! Of course, there are hundreds of secrets and techniques to discover. The first step is embracing it and making your first investment. Good luck!