Thursday, July 14, 2011
New to stock market, how would I ever get into it, advice?
First, do not invest in stock market the money you may need soon. Otherwise, you have to find you investment style or styles. They are many out there and each implies different behavior. You can be a value investor, looking for stocks that are ignored by the market and under priced (that's Warren Buffet style), that's long term. In the long term style you can also be a dividend investor. Dividend investors invest in stable companies with history of rising dividends and they reinvest these dividends profiting from the compounding effect (the most powerful force in the universe as per Einstein). More on the trading side you have momentum investor who invest in the stocks that are hot and have an history of growth. You also have the whole array of technical analysis to make shorter term trades. The best source of information for investing is seekingalpha.com in my opinion. It's important to choose your style and stick to it. Begin with a calm style like value investing or dividend investing until you get some experience and conviction. Don't rush.
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