Stock Market Terminology You Must Know

Tuesday, December 4th, 2012

Whenever you get involved with anything new one of the first things you need to do is to learn the terminology associated with that activity. All businesses, industries and even most sports have their own lingo. You can’t be successful if you don’t even know what people are talking about. For that reason you need to know stock market terminology.

In order to participate in the markets you need to know stock market terminology. This needs to be your first step when you are starting off learning about investing. If you don’t even know what a given word or phrase means, you will never be able to learn everything you need to know in order to be successful.

There are many places you can turn to not only learn the lingo but also learn far more complex aspects to investing in the stock market.

As a matter of fact, using more than one source to gain your education can be a great idea. Much of what you learn will be the same from one platform to another, but many people have added their own unique spin on some of the information.

Having more than one viewpoint may help make you a better investor since it will allow you to get a broader picture of how everything goes together.

This knowledge will set you off on the right path. As you gain experience you will no doubt add your own personal ideas and ways of doing things to the mix.

So, where do you turn for this information in the first place? Well the answer will depend largely on who you are, how you prefer to learn as well as how much you want to learn.

If you only want to learn the lingo there are many books or websites that will have such basic information available.

If you want to learn about the best ways to actually invest and you want to know how the successful investors of the day are making money than you should check to see if those highly successful investors have a website or a course for others to learn from.

Otherwise a trip to your local library might be in order. There a many books, audios and even home study courses that will walk you through the basics. As you get more advanced you can also find many of the same types of resources to take your knowledge to the next level.

And of course, you can always check with your local college to see if they offer any classes on investing.

Another thing to keep in mind is that there is a lot of different types of investing and you may not want to learn all the lingo for every type of investing. For example, buying stocks will have terminology that doesn’t relate to buying real estate.

Once you have a basic understanding of some of the terms you may even want to get in the habit of reading some of the top investing papers and magazines. This repetition will allow it to sink in more completely. Just immerse yourself in the world of investing to learn all you can in addition to your other educational resources.

It will likely take time to know stock market terminology since it will be similar to actually learning another language, but the education is crucial. You can’t learn anything more if you don’t even know the basic language.

Stock Market In Todays Economy-Search Engines For Advice

Monday, December 3rd, 2012

When you go to the search engines to do research on the term “stock market in todays economy” you will get a lot of advice about what you should invest your money in and what stocks you should avoid.

Much of this is traditional type advice, it’s the same thing you have been hearing for years from the self proclaimed “experts” of the day. The problem is that much of that information is wrong.

Recently I have started to educate myself about investing. I knew absolutely nothing about investing while I was married. We went to an adviser and we were told the same thing everyone else is told: to stay in for the long haul, that the market always tends to gain back any losses over time, etc.

After some painful, both financially and emotionally, losses I decided that maybe the information that most of us get isn’t complete or even accurate.

That is why I decided to look a little more closely. I started reading books about two of today’s top investors both of whom seem to have become extremely wealthy only on their own investments.

I like that idea. The guy we used to go to only made money when he got us, or any of his other clients, to invest in a certain stock or bond. He didn’t just live off the income he made with his own investments.

This is one of the first points I remember learning when I started doing my own research – why take advice about how best to invest my money from someone who isn’t “good” enough to live off their own investment?

I think that is a valid point and one you should carefully consider. Both of the investors I studied had similar outlooks on their money and how they invest. They have their own criteria that they use to decide what to invest in and what to steer clear of.

It is based on their own research and not what some talking head says. If the investment doesn’t meet their criteria they don’t invest in it… period.

When the market is too hot and all the stocks are overpriced, they don’t invest in it. Instead they will pull their money out and put it someplace safe. Perhaps they buy gold or perhaps they invest in Treasury bonds but they don’t leave it in the market.

They will stay out of the market as long as it takes to rebound. When a good stock, one that is undervalued and meets their criteria, becomes available they will buy it.

All of these things can be learned by any of us if we are willing to take the time. Here are a few things you need to take away from this article:

1. Knowledgeable investors don’t just “ride out” a bad economy. They get out early so they don’t lose any, or as much, and put their money elsewhere until the market provides more opportunities.

2. They don’t take advice from people who are paid only to give advice. Instead, they do their own research and make their own decisions.

3. They don’t follow the herds or the trends. They have learned from experience that most people get into the market right as it is heating up, which is the time these successful investors tend to get out.

Follow the winners, continue to educate yourself, learn from your experience and create your own criteria for when to buy and you can’t go wrong. If you build a solid foundation you will never have to ask yourself what to do with the stock market in todays economy, you will already know.

Safe Investing On The Stock Market

Saturday, December 1st, 2012

Many people would look at the title, safe investing on the stock market, and think that is impossible. There is no such thing as safe investing when it comes to the stock market.

I mean, come on, you can’t open a paper, watch the news or talk about stock market investing without someone telling you how dangerous it can be. Even the fine print says so on the t.v. commercials.

Recently, I have decided I wanted to find out for myself and start investing in the stock market so I started to do some research. I wanted to know if safe investing on the stock market was really possible. If it isn’t how come so many people make so much money?

True, there are a lot more that don’t make money and actually lose money, but there are those that make huge amounts of money over and over again. And, since I don’t believe in luck, I figured those people must know something the rest of us don’t.

So, I set out to find out what those successful investors did that so few other people did.

In this article I will give you a brief overview of what sets some of the top investors apart from the majority. What traits allow them to make money consistently and what you can change so you make money too.

Here are just a few things to ponder:

1. A few of the top investors that I have studied don’t rely on the information that the “talking heads” provide them.

Instead they tend to swim against the current and do things contrary to what the so called experts are advising the masses to do.

They have developed their own criteria of factors they look for before they invest in a certain stock and they don’t deviate from that criteria… ever.

2. They are extremely risk adverse. They will not deviate from the criteria they have established no matter how “great” an investment appears to be.

3. They are in it for the long term but they don’t keep putting good money after bad. If they find that there aren’t any good investments that meet their criteria at a certain time, they will move their assets out of the market until there are more buying opportunities.

In short, they are getting out of the market right as the majority of people are getting in. They tend to “bargain hunt” but if they can’t find a bargain, they just wait until they do.

There are many successful investors around today. Each of them has their own unique criteria that they are looking for when they consider buying a stock.

Find one of these investors and than learn as much as you can about the things they look for in a given company before they will actually buy that stock.

Then emulate them. Why not “copy” someone who has a track record of winning? Why take advice from someone who works for a company and only gets paid on commission when they convince one of their customers to buy or sell a certain stock?

If someone isn’t good enough to live off their own investments, why would you trust them to guide you with yours? Following these tips can make safe investing on the stock market a reality for you too.