A Beginner’s Guide to the Stocks and Shares Market September 3, 2014My MoneyOff

If you’re a total newbie to the stock market, you might be wondering how to get started. You might not know even the first thing about this industry – and that’s why we’re here to help! This post will tell you everything you need to know about the stock market as a beginner, so you can feel confident when buying and selling stocks. Let’s get started:

Your Financial Goals
Do you have a financial goal? Everybody does in some way or another. You could be saving up for the holiday of a lifetime, or even buying your first house. Many people save this money by setting it aside every month in a bank account. Once you’ve got a decent amount of money and have some more disposable income at your perusal, you can start to think about how you can save even more money. That’s where investing could come in!

Interest rates are at fairly low levels right now, meaning that you could earn around $24,000 over a 10 year period when saving $200 per month at around 0.5 percent interest. The interest would be a grand total of $600. However, if you can find an investment that could offer you just 1 percent extra on your money, you could end up with $34,000.

You don’t need to invest £200 to make it work though. You could literally invest as little as £50 every month.

Now, back to your financial goals. Why do you want to invest? How much money do you need to hit your goal? How much are you willing to risk? You need to decide on an investment that will reflect the way you feel about taking risks, while it still being possible to achieve your goals.

There are a variety of different investments available, so this is where you must do your research. Some people choose to invest in shares and bonds, while others invest in property.

Shares are definitely the most well known kind of investment. This is where you make a stake in a company, like Boots, for example, and the company will pay its shareholders a dividend regularly. A shareholder will benefit from all profits and income made by that company.

Effectively, investing in stocks allows you to become a business owner without even going to work. You can literally sit back, watch your business expand, and get your money as it rolls in. Stocks are considered to be one of the best things ever invented in regards to getting wealthy. Stocks are the bread and butter of your investment portfolio.

You can either choose to access the stock market directly or indirectly. However, you will always purchase the stocks using a third party broker. This could be one mentioned on http://thebrokeragereview.com/promos/optionshouse.com, for example.

For beginners, opening an online account is usually the best way to go about things. As mentioned before, knowing what you want to achieve with your new investment portfolio will help you to head in the right direction.

Photo by Nomad Soul | Shutterstock

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