Stock Markets Exposed
How do I start investing?
Hey, I live in the UK but I know nothing at all about investing or trading. I wan't to start buying and selling stock to make some money but im not sure about how to go about doing this. I have done a bit of research and found out that i can download software distributed by banks. But how does this work? Do I just make an account, put money into it, invest it into something which I feel can make me money and then sell it? If I invest money into something how fast will I get it back? When I choose to sell the stock which I brought is it sold immedietly? Who is this stock sold too? I mean I have always wondered where the stock goes if its value is decreasing. How much money can actually be made out of trading in a week on average? For example if i choose to invest £1000 in a company and the price of its shares goes up by 25% will I get £1250 back (excluding the price it took to make the transaction) Thanks for reading guys. Im looking forward to your answers.
Public Comments
- well you need to start learning the fundamentals of the markets before u actually start trading.Theres a lot to learn before u trade.You can find a lot of sources there is some good source at the funda corner (under categories) at http://www.livesharemarkets.com which are written for new comers like you. Good luck!
- Make sure you study ALL you can before you even think about putting money into the market. Research the companies history (especially when the market had major downs like right now or 2001-2002). When you sell it is sold back to the market and done then. You could make money quick (you buy Apple and they release the iPhone 2 a few days later) or lose it quick (if someone posts negative news about company X that you just bought stock in). When you sell you might have sales/transaction/brokerage fees and taxes so keep that in mind. Also, consider starting out with mutual funds.
- You will want to read about stocks and investing before you do anything with your money. - The 5 Rules for Successful Stock Investing, by Pat Dorsey, is one of the best books on investing in individual stocks. - A Randon Walk Down Wall Street, by Burton Malkiel, is the book that convinced many investors (such as myself) that investing in individual stocks is a time-waster. One of the best books ever written on investing. - Mutual Funds for Dummies, by Eric Tyson, is the first book I recommend to people who know nothing about investing. - My free downloadable book at http://www.invest-for-retirement.com has two real useful chapters, chapters 19 and 23. Everything else is just filler.
- Read some investing books or practice at virtual online stock market games first... then, after you feel ready, open an investment account. http://dividend-growth.blogspot.com/
