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.

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.

Retirement In The Stockmarket-No Safe Way To Go

Thursday, November 29th, 2012

Many people plan on investing some of their money so they can have enough to live on when they retire. With the poor economy many people have been starting to learn that that isn’t always a safe way to go. Or is it? Is retirement in the stockmarket a viable option and if so, what pitfalls do you need to be on the lookout for?

The truth is that retirement in the stockmarket is a great option but not the way most people do it. Yes, you can grow your money and help prepare for retirement by investing in the stock market but if you don’t know what you are doing and / or you rely on some “professional” to do it all for you, you may well find yourself in trouble.

I can’t believe it when I hear “experts” telling their clients to sit tight and leave their money in the market even when it is obvious that everything is going downhill. They tell their clients that as long as they leave their money where it is all their losses are only “paper losses” and that they can recoup those losses when the market rebounds.

That is the common way of thinking… and it is wrong. Here is why:

1. First of all it is true that based on history the market will rebound at some point and you will probably get your money back. But will you get it back in time? What if you are set to retire in a few years, do you have time to recoup everything that you’ve lost?

Maybe, but maybe not. No one can accurately predict when things will turn around. By leaving your money and just riding out the storm, you could permanently damage your retirement savings.

2. Instead of “riding out the storm” and recouping your lost income down the road, why not get out when it is apparent things are moving in the wrong direction? That way instead of having to wait possibly years for the market to rebound and then years more just to get back to where you were, you won’t have lost anything.

I guess you might loss a little profit by pulling out early when it appears trouble is brewing but you most likely won’t lose as much as if you just left your money in the market and hoped for the best.

Then you can take that money and invest it is some other investment that is actually going up in value even as the stock market tanks.

Isn’t it better to continue to grow your money than to leave it in the market and have to try and regain any ground you’ve lost when things turn around? This is the way the truly successful investors do it and you may be wise to follow their lead.

3. And last but not least, consider who is doing the investing for you. Are they paid solely by commission? If so it is in their best interest (not yours) to leave your money in the market. If they don’t make trades they don’t make money so of course they would recommend that you keep your money in the markets.

The stock market can be a great way to put your money to work for you and increase your wealth. But, like most other things in life, if you don’t do it the right way it can turn into a nightmare. Retirement in the stockmarket can work but you have to always keep an eye on your money and who is investing it for you.