Friday, July 31, 2009

Investing in Stock Market - Beginner's guide

In my last post I had discussed about the common myths about stock market investment. Today I would like to share with you, whatever knowledge I have gathered or came across, on how to invest in stocks, or rather say how to get started with stock market investment.

Investing in stocks has always been a frugal financial strategy for many, and statistics show that it has been successful in providing returns that exceeded much more than many other investments. Here are some of the things that you can do if you are looking for investment in stock market.

The first and the foremost thing is to get educated about stocks. There are a number of new terms like short selling, dividend yield, bull market, asset backing and so on. You can get all stock related information online from various financial sites, or you can read about stocks,attend seminars - collect proper information in whichever way you like. Before you proceed any further, you must have the background knowledge and make sure that stock market investment is for you.

Once you have decided on investing, next step will be to choose from the two options - buy stocks directly or go through a broker. Even if you go for a stock broker, it is advisable not to rely totally on him for all the stock market related decisions, try to collect as much information as possible.

The next point that you must keep in mind is diversification, that is do not put all your money in just one or two stocks. Successful investors diversify in multiple stocks. For the beginners, it is always better to go for long term investment.

There are a various strategies that contribute largely to the making of quality returns. A great deal of research work and dedication is the key to success in stock market.


  1. very informative information.. keep it up buddy.

  2. Hi,

    You have a nice blog post on stock market investment information.

    Investing in stocks which are variable investments and fluctuate in value, so there is risk involved. At the same time, this is where you can easily make money for your future. Over the past 40, 50, 60 years stocks on average have produced average returns of about 10% a year vs. about 3% for savings products and cash equivalents. You can pick your own, or simplify things by investing in stock mutual funds.