There are few things more intimidating than the stock market. You probably hear about the market crashing or the Dow Jones going up a few points and wonder, what does that mean? Earnings per share, market value, day trending, dividend, hedge, index — the list of investment jargon goes on endlessly. If you are considering investing in the stock market for the first time, it would be best not to focus on all these specific stock market investment terms at the start, and just keep your eye on beginner investing basics.
One of first things you will want to do is understand what it means when you invest in stock. Stocks actually represent an entire company, and when you buy shares of stock, you are essentially putting your your eggs into their basket, come rain or shine. In plain terms, this means that if the company tanks, your money goes with them, and if it does well, you stand to profit. Advanced stock market investors and analysts are able to predict to some certainty how well a company will do, and they invest accordingly. For example, in today’s world of social media, investing in Facebook, Twitter, and other social media outlets would be smart. Forbes magazine is even calling Facebook stock, the stock to buy in 2014.
It may also be beneficial to work with a stockbroker initially. These brokers are highly specialized in how to buy and sell stock, and closely monitor the stock exchange. They can assess your finances with you, decide how much would be smart to invest, make investment recommendations for you based on trending stocks, and also advise you on different stock investment options. In the beginning, these brokers will be crucial to making informed investment decisions. But even experienced stock market investors utilize the help of these brokers because they make it their priority to know everything they can about the stocks and finances, and the job market for stockbrokers and financial services is expected to increase 11% by 2020, according to the Bureau of Labor Statistics.
Staying informed is going to be another key part of successfully entering the world of stock market investing and trade. You will have to start frequenting sites like Nasdaq.com, TheStreet.com, SmartMoney.com, and Bloomberg.com. These websites contain valuable information about stock market news and trends, and can keep you up to date on the latest happenings on the stock market floor. For example, you can sign up to get daily stock alerts on TheStreet.com, find out what the best stocks have been in 2014, and even interact with other stock market investors on the site’s Twitter feed. This keeps you connected to real time stock information, and gives you a better understanding of how the stock market impacts the country.
There is no question that stock market investing is complicated and overwhelming at first glance. There are a lot of financial terms to learn, risks to think about, and options to weigh. But with the help of a stock broker and some extra studying on your part, you will be on your way to investing your money, and who knows, you may soon become a stock market pro.