The stock market is popularly known as a creature in and itself and no one can explain why it acts the way it does. The ride has been thrilling with its fair share of highs and some humbling lows, market keeps teaching new lessons in his own ways. This is why we produced this beginners stock market guide.
For a beginner to know the stock market better should have to learn or study some points like – How the stock market works, how stocks are valued, why the stock market is a good investment in long term, why stock market gets out of whack with reality, recommended ways to invest the stock market etc.
Stock market always been driven by the supply and demand. Investors trade stocks for challenge, retirement, and hobby for a full time job. The supply and demand is involved in the activities of investors.
So what ever may be the reason to take interest in stock market, first check before you invest? So it’s mandatory to know more about the market while investing. Always deal with the market intermediaries registered with Exchanges. Settle down the dues through the normal banking channels with the market intermediaries. Don’t deal based on rumors. Don’t deal with unregistered brokers/ sub-brokers, intermediaries. Don’t fall prey to promises of guaranteed returns.
For the beginners it’s best way to know Trend trading in stock market. Trend trading is one of the most effective and easy to use methods in the market. So beginners always have to look up on the trend after it has started and getting out of trend. So, different tools are there to check out the daily trend or in long term basis for the proper study of the market situation, before investing the funds in the ever unpredictable stock market.
Keep an eye on the market: – you have to keep your eyes open once you start trading. Try to collect information about the companies so that you can work out a plan for future investments. You can watch the news on television, read newspaper register yourself to newsletters of the companies.
Some technical analysts decide what to buy and what to sell, the time they decided it’s good to take the consideration part. Stock market guidance using technical analysts suggests markets have memory. They know the past price and current price momentum by experiences. So it’s an advisable part for beginners to listen the words of Technical Analysts and the current trend in stock market before investing doubtfully. There are many ways to get access to the best websites that provide technical analysis for stocks, some are free, some you have to pay for. But in general if they have the ability to use charts, screen the market for various technical set ups and filter down the results (because there are thousands of stocks to choose from) then this is mainly what you are looking for.
At the end of the day use your own judgement. The best analysis of a company is often done by yourself. If you do not understand what it does, and what factors might effect the price, then probably it’s not a worthy investment to get involved in. As a beginner it is best to stick with sectors you understand, maybe technology or banks/finance stocks. This way things will be easier to manage. Good luck!