How to get started in the stock market

So, you want to get started in stocks? You want to earn millions while you sleep, work from an island in the Bahamas and and have crazy parties like you saw in the Wolf of Wall Street. Well, that may not be a realistic goal, but investing is certainly something everybody can do. I will lay out some of the basics of stock market investing for you.

What is a stock?

A stock is simply an slice of ownership in a company. It can also be called a share. If you buy Apple stock, you become an owner of Apple – yes, literally.

Stocks come with a few rights. First, you get the right to any dividends, or profits that the company pays out. Second, you get a voting right at any meetings of the shareholders. Now, Apple has millions of shares, so don’t be expecting to go deciding if the next iPhone should have 10 cameras or not. In fact, most everyday investors will never vote their stock.

How do I buy a stock?

You will buy your stocks through a broker. This is someone who will act on the stock exchange on your behalf. They will charge you a fee called brokerage to cover their costs of doing this.

A brokerage account will act much like a bank account, and will allow you to buy and sell stock with the money you deposit into it.

How much money should I invest in stock?

As much as you can afford to lose. Remember, some people make their entire careers out of investing in stock. It is not as simple as just clicking buttons and making profit. Treat your investments as spending you won’t get back when you are a beginner, and you won’t get yourself in trouble.

How do I learn about strategy?

The best way to learn about stock market strategy is through books. The books below are some of the most popular investing books ever, and can be relatively easy to understand for beginners. Click on the links to check the latest prices on the books and to purchase them!

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits)

The Intelligent Investor

Rule 1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week

Invested: How Warren Buffett and Charlie Munger Taught Me to Master My Mind, My Emotions, and My Money (With a Little Help from My Dad)

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