Stock Market Investing For Dummies

All too often, stock market investing is made to seem more complicated than it is. We have called this post Stock Market Investing for Dummies because when we first set out on a journey we have so much learning and understanding to do. Please don’t feel slighted by the term; it is intended to inject a little light-heartedness into the proceedings.

The basic concept of investing in the stock market revolves around the stock itself. A share of stock is a part of ownership in a particular company. When a company “Goes Public” they are making part of their shares of stock available on a major stock exchange, where you can purchase and sell those shares of stock.

Everyone has heard of the concept of buying low and selling high, and in reality the fundamentals behind the principal are not all that hard to understand either. A stock’s value is dependant upon its demand. When the value is low, there is very little demand for the stock. If the company then releases a dividend, or unveils new business plans, this can get other investor’s attention and increases its demand or value.

To make the most amount of money, you have to know when a particular share will be more in demand before the other investors do and that in itself is an advanced technique you will begin to understand as you gain more experience. Buy low and sell high, but in order to make the best profit, you need to buy low before the other investors do and sell high right before the demand fades away. Too late and you lose money, to early and you also lose money. Give it time and practice and soon you will be trading like a professional.

When it comes to stock market investing for dummies, all that you really need to know is that you want to purchase a share of stock when there is little or no demand. However this is tricky because you want to make the purchase with an anticipation of the increase in demand for a stock.

Stock Market For Dummies – Update

In today’s economic climate it is even more important that your research is as thorough as it possibly can be. Scout around this site before you invest in any equity related instruments and read as much as you possibly can. Don’t get caught out through lack of knowledge.