How Can I Get Started Investing in the Stock Market?

“When you recognize what you’re doing and don’t rush to make risky choices, money markets is more secure than you may suspect. While nothing is ensured 100% of the time, the fundamental guideline is that when an organization profits, you profit. Also, numerous traded on an open market organizations are great at profiting. It’s simply a question of making sense of which ones.”

Photo by http://lifehacker.com/
Photo by http://lifehacker.com/

Dear Lifehacker,
I’ve built a decent amount of savings over the years and I’m ready to start investing some of it. I’ve heard I should put some in the stock market, but all I really know is how to look up a company’s symbol. How do I get started investing? What do I need to know?

Sincerely,
Lost Exchange

Dear Lost,
You’ve already made a good move by asking first. While it’s certainly possible (even easy) to make money investing in the stock market, it’s also possible to lose really quickly if you don’t know what you’re doing. Before you take any action, do your research and wait until you’re ready to dive in. As Warren Buffett says, investing is a no-called-strike game. That is, there’s no penalty for not swinging.

Some early investors may also not want to get involved in directly investing in stocks right off the bat. You can buy shares of mutual funds or ETFs which are essentially managed pools of money wherein another company invests in a wide variety of stocks and you get a portion of the returns. We’ll come back to that, but first let’s go over the basics of how individual stocks work and how you get returns on your investment.

Read more: http://lifehacker.com/how-can-i-get-started-investing-in-the-stock-market-1376782232

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