Beginner's Guide to Stock Market
First, they need people to take them by their hands and learn all about the risks and opportunities of stock market investment. They can do that by learning from their friends who are good at investment, reading investment books, attending investment seminars. Signing up, and playing for free, online simulation games is a great help to feel the pulse of the market movements.
Second, count their money to see whether they have surplus funds to invest. Investing surplus funds as opposed to putting their entire savings into the market will enable them to sleep well at night. However, if their surplus funds got stuck in their investment in an adverse market condition, they would still be able to live theirs lives as usual.
Third, choosing stocks with the potential for income and capital appreciation is important. Choose stock with long history of good dividend payouts and steady price appreciation would be a safer investment decision. Some " blue chips" stocks would fit in this category.
Fourth, knowing when to buy and when to sell is crucial when you put their money into the market. Buy low sell high would be the preferred investment strategy. Following the footstep of Warren Buffet, the guru of stock market investing, would produce positive results.
Fifth, start investing in small amount in "blue chip" stock, enjoy the dividend payout and capital appreciation. You will then become more confident in the stock market after experiencing from you small investment that there is money to be made in the stock market. Over time, increase their investments. If they stick to their " buy low and sell high " investment strategy, they would make a good start at stock market investment.
Chin M C is a Finance and Business Accountant who writes about how people earn, save, spend and invest their Money. BizCom Management
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