The stock market for beginners is a world of more gains and zero losses. However, that is not the case. In fact the stock market is mostly about losses, which is why stock market traders try very hard not to lose. Fortunately, losses can be avoided in the stock market and if you have the right tools in your bag, you will do just fine.
One of the best techniques to stay afloat the dog-eat-dog world of the stock market is to be a well read stock broker. Fully understanding the different basic concepts in personal finance, corporate finance, economics, taxation, and investment theories will help make your day to day trading easier.
But the reading does not stop there. Aside from textbooks and basic trading references, you also have to read the daily paper and read on previous trading stories, both the good and the bad. It is only through research that you will know which techniques work and which ones don’t.
- Capital market
- Commodities exchange
- Financial regulation
- International Organization of Securities Commissions
- Stag profit
- Stock exchanges for developing countries
- Stock investor
- Stock market
- Stock market data systems
- Histoire des bourses de valeurs (French)
- List of stock exchanges
- List of stock market indices
- List of financial regulatory authorities by country
- List of Swiss financial market legislation
The stock market is a complicated place and not a friendly one for the novice investor who is not particularly well suited. Avoid “hot tips” talk you often get from friends. Stock prices rise and fall for reasons which can be complex and more often unknown than known.
Since the only sure bottom is ZERO, when you invest, consider adding protection (i.e. stop orders, options, etc.). To avoid losing your capital, be sure the company you’re buying is worth owning. Unless you love the thrill of losing, you may wish to avoid putting too much of your money in one stock.
It takes years to become well versed on the financial markets and on stocks in general, you may want to find someone you trust and seek their guidance. It may seem like an unnecessary expense but heading into unfamiliar territory alone can often cost us more than we expect.