| #ffffff;" /> | | | | back and watch what your investment pay dividends. |
| How would you like to learn the basics of stock | | | | Just like every other business platforms, the stock |
| trading starting today? How about understanding | | | | market has a number of terminologies that anyone |
| exactly how and what it takes to buy stocks at | | | | willing to successfully work within its circles must |
| good prices and getting excellent return on your | | | | know and thoroughly understand. Most of these |
| investment almost immediately? Contrary to what | | | | terms are used in other sectors of the business |
| you may have been made to believe, stock trading is | | | | world. However, they all mostly mean the same thing |
| nothing close to rocket science if you know exactly | | | | in the stock market as well. For dummies (stock |
| how to go about it. It simply requires that you follow | | | | market dummies of course) who know very little to |
| a number of time-tried and tested steps and | | | | nothing about these terms, at the end of this article, |
| strategies then wait and watch your money pile up. | | | | it should be clear to you what each means. They are: |
| This is what the aim of this “Stock Trading | | | | ·Stocks – You, probably, often hear |
| for Dummies” article is all about. | | | | that new stocks or shares are issued everyday by a |
| Here, you’ll learn 3 basic steps on stock | | | | number of companies, but still the question |
| trading that may come in handy for you once you | | | | “what is a stock, and why do companies |
| start working on this money making concept. | | | | issue it?” remains. The answers to the |
| 1.Decide on Which Stock to Buy – The first | | | | questions are simple: 1. Stocks can easily be defined |
| step in this Stock Trading for Dummies tips is to | | | | as a tiny fraction of the company that’s up |
| decide on what kind of stocks to buy; do you want | | | | for sale to people like you. 2. Companies issue stock |
| shares of starter companies or renowned ones? And | | | | as a means to raise money to help finance the |
| do you want stocks you’ll hold on to for a | | | | smooth running of their daily productions and |
| long period of time or just one you’ll sell | | | | activities. Clear enough? It should be since this is a |
| when it reaches its peak? Whatever your answers | | | | snippet of what there is for stock trading for |
| are, you’ll find this step very useful in the | | | | dummies. |
| long run. However, you really don’t have to | | | | ·Capital – Just like every other |
| decide on this yet until you try step number 2 below. | | | | business situation, in stock trading, the term capital is |
| 2.Signup With a Broker – Signing up with a | | | | used to describe “the money invested by |
| well-known broker like E.F. Hutton, CMC Markets or | | | | companies or individuals to start a business”. |
| Fidelity Investments should be your next step. Most | | | | If a company issues a stock before it begins |
| of these stock trading brokers can be found online | | | | operations (highly unlikely except among individual |
| but bear in mind that a good broker is one that will | | | | acquaintances), then the revenue generated by selling |
| hold your hand from start to finish while ensuring that | | | | the stocks could be seen as the capital required for |
| you meet every single goal you’ve set for | | | | starting the business. |
| yourself. | | | | ·Equity and Debt – Since this article is |
| 3.Follow The Instructions Provided By Your Broker | | | | about stock trading for dummies, you’d easily |
| And Place Your Order – This third Stock | | | | be forgiven for wondering what these terms, |
| Trading for Dummies step is probably the most | | | | especially “Equity”, means. Basically, |
| crucial one as it involves money changing hands. So | | | | there are two ways of which companies can raise |
| once you’ve found a good and trusted stock | | | | money. They can do this by either selling all their |
| broker (be it online or conventional) it’s time | | | | stocks to get the required resources or by borrowing |
| to place your order. However, before you buy any | | | | money with promise to pay it all back later with |
| stock or shares, ensure that you’ve read all | | | | interest. The first methodology is called Equity while |
| the materials concerning it and that you understand | | | | the other is called debt. Most companies, or even |
| everything – including the terms and | | | | individuals, do as much as they possibly can to avoid |
| conditions. This will ensure that you don’t fall | | | | debt; which is why they offer their stocks in the |
| into any traps or loop holes as most people do. | | | | stock market to begin with. |
| Now that you’ve bought the stocks, | | | | As far as this stock market for dummies article goes, |
| it’s time to celebrate because you now own | | | | the main benefit of stock trading is that shareholders |
| portions of what is possibly one of the largest | | | | are eligible to share in the profits of the company. |
| companies in the world. After celebrating, you can sit | | | | |