If you're like most stock market investors you've heard
dozens of opinions on how to invest in stocks but it really boils down to just
a few things.
You need to setup a brokerage account and then pick a
strategy to use.
I use a broker called Scottrade http://www.scottrade.com/
and they seem to be fine for my purposes.
After you have setup a brokerage account you then need to
pick an investing style.
The two main styles are:
Growth investing - where you buy stocks who's earnings are
growing faster than others.
Value investing - where you buy stocks that are undervalued
because they are trading at a lower price than what the company is actually
worth.
Growth stocks generally are high-tech and medical companies
where when I think of a value stock I think of companies like Coca-Cola or
Gillette which sell more everyday type items that aren't as new or exciting.
You then need to decide which method is best for you and
stick with it.
After choosing your method you need to research how to
invest in that particular method. This is beyond the scope of this article and
I recommend you do a search for "growth investing" or "value
investing" on your favorite search engine.
Then research some companies and find which ones seem to be
the best and invest some money in them, but only invest money you can afford to
lose. I don't want you to invest money in stocks if you might need that money
to eat next week or pay the rent., stocks can go down.
Hopefully you have found that stock market investing can be
a wonderful thing to learn more about and can be quite profitable.
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