Part 2. Things to know.
Preferred stocks
Despite its name, preferred stock has fewer rights than
common stock, except in one important area – dividends. Companies that issue
preferred stocks usually pay consistent dividends and preferred stock has first
call on dividends over common stock.
Investors buy preferred stock for its current income from
dividends, so look for companies that make big profits to use preferred stock
to return some of those profits via dividends.
Liquidity!
Another benefit of common stocks is that they are highly
liquid for the most part. Small companies may not trade frequently but most of the larger companies trade daily
creating an opportunity to buy or sell shares.
Thanks to the stock markets, you can buy or sell shares of
most publicly traded companies almost any day the markets are open.
1. If you're basing your trading decisions on the same
contexts and conclusions as everyone else, it's difficult to develop much of an
edge.
2. Unless it's completely manipulated, the market generally
doesn't reward "what everyone knows," i.e. the consensus, for long.
3. "What everyone knows" often includes trends and
targets. For example, everyone now knows gold is in a bear market and the next
technical target is $1,550 - $1,900.
Investing in the stock market is probably the best way to
accumulate long term wealth. However, there are some things you need to know
for investment success. This module is designed to help the novice investor get
off to a good start for long term success in investing in the stock market.
Stock Market for Beginners
Here are some basic factors one must know before
starting to invest in the stock market. Investing in the stock market is a
great way to enjoy profit growth! but... it is also a place where
you can lose substantial money if you don't know what you are doing
You need a good investment strategy that has stood strong.
The best way to lose money in the market is to invest in tips or rumors.
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