Stock Market Basics
Do I Really Need to Know?
Everyone wonders if they can skip the stock market basics and start to make money. The answer is yes and no. Let me explain...
You don't need to know how a car engine operates before you drive a car right? Yes, its true and this website is all about teaching you how to drive and not debating everything there is to know about the stock market. However, I would be doing you a disservice if I leave this page out.
The reason is, you will appreciate your investments more if you know a little of the stock market basics.There are lots of introduction articles out there but here is what you really need to know about the stock market...
It is a place you can make big money and lose big money
I bet most people only talk about the money you can make by investing. However, right from the very beginning, you should know that fortunes can be made and lost in this exciting arena. It is only when you start with the correct mindset that you are able to succeed.
It is not a place for gamblers or lazy people
Trust me. Those who succeed in the stock market are actually very hardworking people. They study and study and analyze before they actually put money into an investment or trade.
Ok. Did that scare you? I hope not. I just want you to start out right.
Here are the stock market basics you need to know
As I said before, I only want to cover what is really important for you. So my article on this introduction to the stock market will be really short. If you want a more complete introduction and definitions of the stock market read George Fontanills book, the stock market course.
This is what I want you to know:
The stock market is a place where buying and selling of shares of company takes place. There are three chief players in the stock market today: The professional, the short-term trader and individual investors. The professional are what we often refer to as institutional investors. They trade stocks on behalf of other people.
For the rest of us, we could either be a short term trader or an individual investor who holds a stock for long term investment. So, now you realize that you will either make money by trading or investing.
What's the difference? That is the subject of our second and third foundation article. That's all you need for now regarding stock market basics. Click on the link to read the second article in the Foundation series,Investing introduction.
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