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I want to know about stocks
starting stocks #career-counseling
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4 answers
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Luigi’s Answer
Dear NIEAM S.,
Stock market can give you a lot of opportunities to integrate your income if you keep update with key events happening in the world. It can become a full time remote work in case you find yourself particularly interested in it. There are lot of investment platforms that allow you also to build dummy investment portfolios just to exercise and getting used to the key mechanisms of investing.
If you are willing to spend quite some time on it and you find it exciting, stocks give you quite some fun. However you should consider that volatility is quite high in those times, so I would recommend to start with some amounts that you are not forced to liquidate due to some specific causes. If you are interested in a much longer time horizon of investment and you are not willing to follow day-by-day market intelligence, I would recommend to invest in mutual funds. You have expert professionals managing your finance to increase your wealth. Opportunities for returns maybe are lower than the ones that may give you stocks, but in the mid/long term that can be a good option.
Good Luck!
Stock market can give you a lot of opportunities to integrate your income if you keep update with key events happening in the world. It can become a full time remote work in case you find yourself particularly interested in it. There are lot of investment platforms that allow you also to build dummy investment portfolios just to exercise and getting used to the key mechanisms of investing.
If you are willing to spend quite some time on it and you find it exciting, stocks give you quite some fun. However you should consider that volatility is quite high in those times, so I would recommend to start with some amounts that you are not forced to liquidate due to some specific causes. If you are interested in a much longer time horizon of investment and you are not willing to follow day-by-day market intelligence, I would recommend to invest in mutual funds. You have expert professionals managing your finance to increase your wealth. Opportunities for returns maybe are lower than the ones that may give you stocks, but in the mid/long term that can be a good option.
Good Luck!
Updated
Ken’s Answer
Wanting to learn about stocks is a good way to start investing and saving for retirement. Researching companies by going through their public documents and trying to see what the health of the company is and then their current valuation can help you determine if it is worth investing in a companies stock. The issue is if you are not a trained professional, you may not know exactly what to look for and may not have the time to do all of the research.
Index funds are becoming more and more popular. This allows you to invest in variety of companies instead of just one company. The benefit to this is if one company does not do well, the other companies in the index fund can help balance that out. Index funds can be as wide as the entire the top 30, 500 or 2000 companies in the US. A stock symbol for the top 30 companies is DIA, SPY for the top 400 companies and IWM for the top 2000 companies.
Best of luck!
Index funds are becoming more and more popular. This allows you to invest in variety of companies instead of just one company. The benefit to this is if one company does not do well, the other companies in the index fund can help balance that out. Index funds can be as wide as the entire the top 30, 500 or 2000 companies in the US. A stock symbol for the top 30 companies is DIA, SPY for the top 400 companies and IWM for the top 2000 companies.
Best of luck!
Updated
Andrew’s Answer
Dear NIEAM S.,
Like everything in life, you need to ask the WHY question, whey do you want to know about stocks - is it to make a living buying and selling stocks, is it for way of growing and preserving your hard-earned money for living and retirement or is it for gambling or is it for helping companies that serve the people and planet at large.
What ever be, you need to answer that question honestly. If you do so, just your passion, skill and usefulness that this would serve you and the people around you at large undoubtedly without you reaching boredom nor stagnant nor greedy. What you seek, will seek you.
Anything you want to master, you need to have discipline, dedication, desire, curiosity and routine to repeat it until you grow and evolve your knowledge and wisdom you derive in that journey. If you do so you will surely reach heights that will make you energized, enlightened and enjoy the fruits of your labor. People achieve once they know WHY thy want to do. Aligning your personality and passion to ones unique energy/soul is like exploring and experiencing once real Strength and Power that could be harnessed for your own growth and for others.
So, read a lot about what is a stock, what is that organization stands for, what is their long term goal, why they do what they do, what is their role in the community. Needs several hours of looking into different verticals of organization that interest you pharmaceutical, insurance, transportation, technology, finance etc., and then dive into the profile of the company. Understanding the parameters that enable to check the health of a company. Watch the news, follow the leaders of the firm who are they and their background, what products they have and planning to produce in future,
It is like a relationship knowing about yourself and the person in relationship.
Like everything in life, you need to ask the WHY question, whey do you want to know about stocks - is it to make a living buying and selling stocks, is it for way of growing and preserving your hard-earned money for living and retirement or is it for gambling or is it for helping companies that serve the people and planet at large.
What ever be, you need to answer that question honestly. If you do so, just your passion, skill and usefulness that this would serve you and the people around you at large undoubtedly without you reaching boredom nor stagnant nor greedy. What you seek, will seek you.
Anything you want to master, you need to have discipline, dedication, desire, curiosity and routine to repeat it until you grow and evolve your knowledge and wisdom you derive in that journey. If you do so you will surely reach heights that will make you energized, enlightened and enjoy the fruits of your labor. People achieve once they know WHY thy want to do. Aligning your personality and passion to ones unique energy/soul is like exploring and experiencing once real Strength and Power that could be harnessed for your own growth and for others.
So, read a lot about what is a stock, what is that organization stands for, what is their long term goal, why they do what they do, what is their role in the community. Needs several hours of looking into different verticals of organization that interest you pharmaceutical, insurance, transportation, technology, finance etc., and then dive into the profile of the company. Understanding the parameters that enable to check the health of a company. Watch the news, follow the leaders of the firm who are they and their background, what products they have and planning to produce in future,
It is like a relationship knowing about yourself and the person in relationship.
Updated
Jason’s Answer
Ken provided a great answer that gives a lot of specific info which is perfect. I just wanted to add that noting you are not in the US, its important to understand there are differences in markets across the world. Start by learning your domestic markets and expand beyond that. You may also want to learn about central banks in different countries especially in the US and Europe, and of course Asia.