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Learning Fundamentals of Stock Trading

The stock market is a complicated place for which the novice investor is not particularly well suited. Avoid the “hot tip” talk around the water cooler or in the lunchroom. Stock prices rise and fall for reasons which can be complex. Since the only sure bottom is zero, when you invest, consider adding protection (i.e. stop orders, options, etc.). To avoid another WorldCom, Enron, or even a 2008 type of disaster, be sure the company you’re buying is worth owning. Unless you love risk, you may wish to avoid putting too much of your money in one stock.

It takes years to become well versed on the financial markets and on stocks in general. You may want to find someone you trust and seek their guidance. It may seem like an unnecessary expense but heading into unfamiliar territory alone can often cost us more than we expect.

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