Tired of putting your money in savings month after month? Read for a stock market 101 course on putting your money to work!
Back in 2017, the U.S. stock market was at an all-time high. But, the number of households investing were low. In fact, only 54% of people owned stocks and many of these owned very small amounts.
Luckily for you, investing and trading in stocks isn’t difficult. To help you get started here’s a stock market 101 course that will help you revolutionize your income.
Learn the Stock Market Language
Before you can trade in the U.S. stock market, you need to learn the lingo. Trading on margin, limit orders, and annual report are just some examples of terms you should learn before investing money.
Other basic stock terms for beginners include:
- Balance sheet
- Income statement
- Cash flow statement
- Investment risk
- Averaging down
Once you learn the stock market jargon, establish your goals. Work out what returns you’re looking to make and how much risk you want to take.
Choose the Right Stocks to Invest In
If you want to invest money in stocks, you have to choose the right ones. The best way to establish which stocks to trade is to look at annual reports and price-earnings ratios.
Some of the most impressive investments to add to your stock portfolio include Apple and Microsoft. Luckily, there are various resources where you can check the Microsoft and Apple stock price.
Stock Market 101: Buy at the Best Time
Once you know which stocks you want to invest in, you shouldn’t buy them straight away. One of the main reasons people don’t make money when trading stocks is because they invest and sell at the wrong times.
Many focus on the stocks when they’re good. But, by the time they find out which ones are good, others already bought them. The best option is to watch the stock price and invest when it’s down.
Know the Difference Between Investing and Trading
Investing and trading stocks are two different things. Investing in stocks is when you buy shares and hold them for a long period of time. Trading is when you buy stocks and sell them quickly to turn a profit.
While trading can offer fast results, investing is likely to offer a better return on investment. For the best reward, diversify your income by investing in different company stocks.
Also, look at different types of stocks. For example, you can choose between common and preferred stocks.
To Find out More About Investing with Little Money, Check out Our Helpful Tips
This quick stock market 101 course includes everything you need to know to get started. The key is to learn basic stock market jargon before you invest any money.
Also, make sure you take your time when investing money. By waiting for the best time to buy and sell your stocks, you’ll see a larger return on investment.
You’ll be happy to know that you don’t need a huge amount of capital to invest in the stock market. To find out more about investing with little money, check out our helpful tips.
We share a wealth of information on financial topics that will help you make the most of your money. So keep checking our finance blog!
Author: Cathy Carter