Beginner Tips Part 2
1) Stocks aren't just pieces of paper, their your life!
When you buy a share of stock, you are taking a share of ownership in a company.
2) There are many different kinds of stocks out there
The most common ways to divide the market are by company size sector, and types of growth patterns. Investors may talk about stocks, energy vs. technology stocks, or growth vs. value stocks,
3) Stock prices track earnings from companies
the behavior of the market is based on A lot of things over the long term though it is mainly company earnings that determine whether a stock's price will go up down.
4. Stocks are your best shot for getting a return or profit
well ahead of inflation and the return of bonds real estate and other savings vehicles. As a outcome stocks are the best way to save money for goals like retirement.
5. Individual stocks are not the market. Dont invest in a single stock!
A good stock may go up even when the market is going down, while a bad stock can go down even when the market is strong!