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how do you get into stocks?

how do stocks work and what would influence the stock market?

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Chirayu’s Answer

There are several steps you can follow to pick stocks or get into the stock market: Consider your investment goals, risk tolerance, and time horizon. Determine whether you want to invest in individual stocks or use a more diversified approach through exchange-traded funds (ETFs) or mutual funds. Research the companies and industries you are interested in investing in. Look at their financial statements, earnings reports, and other metrics to assess their financial health and growth prospects. Also, follow the news and keep track of any events that may impact the stock market. Investing in the stock market involves risk, so it's important to determine your risk tolerance and invest accordingly. Diversifying your portfolio and investing for the long-term can help manage risk. You'll need a brokerage account to buy and sell stocks. You can choose between a traditional brokerage firm or an online brokerage platform. Consider factors such as fees, customer service, and the types of investments offered when choosing a brokerage. Don't rely on short-term market predictions or hype. Instead, make informed investment decisions based on your research and investment strategy. It's also important to regularly review your portfolio and adjust it as needed.

The stock market is influenced by a variety of factors, including: Economic indicators such as Gross Domestic Product (GDP), inflation, employment, and interest rates can all impact investor confidence and influence stock prices. Company performance as investors will look at a company's financial statements, earnings reports, and other metrics to gauge its financial health and future growth prospects. Government policies, elections, and international events can all affect investor sentiment and the stock market. Market sentiment refers to the overall mood of investors and can be influenced by a variety of factors, including media coverage and investor sentiment surveys. Changes in interest rates can affect the stock market by influencing the cost of borrowing money and the return on savings.
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Paul’s Answer

There are many brokerage companies to choose from, that deal in the sale of individual stocks. I think Schwab and Fedelity are two examples, that sell stocks to the individual investor.

Basically, stocks are shares in a company. Shares that can be invested in or sold when the time is right.

What effects stock prices? Many things. This includes interest rates from the federal reserve, pandemics, inflation, a recession, political unrest, like a war in Ukraine, and other elements like low sales reports. Good economic news makes them go up, like low inflation, low interest rates, world economic stability and good sales reports.

I think the key to success is to get into stocks when the prices are low, and hang on to your stock shares until the economy improves and prices go up. Then sell the shares at a profit. Also remember that stock shares earn not only earnings, but also dividends, which are taxable under IRS rules.
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Luke’s Answer

I think that a way you can get into stocks is to pay attention to current events. Find a website that you like that is a news/stock outlet. One of my favorites is Yahoo Finance. In Yahoo Finance, there are countless news articles, stock ticker information, and analysis. The news articles on this website are better than articles on normal news websites because all the articles relate to companies that are publicly traded. This will give you a little bit of insight into what companies you want to invest in. Here are a few basic tips:
- You want to buy low and sell high. This will allow for maximum profit. Look for companies that you believe have a chance to grow in the future.
- Look at external economic factors. Events like the pandemic and war will cause the stock market to struggle.
- Pay attention to news about companies that you invest in. This could give you insight into what decisions you should make.
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Noah’s Answer

Stocks word like any other thing that has value: supply and demand. In this case it's a bit more complicated because the demand for a given stock depends on what people think the demand will be in the future. In other words, if many people believe a company is going to grow and make more money, there is a good chance that the stock will go up along with that sentiment. In the short-term though, stocks are extremely volitile. No one can predict the market exactly but over time if you stick to good principles you can have a good chance of estimating which companies will do well.

For now, I reccomend that you look into index funds and paper trading. An index fund is essentially a group of many stocks. It goes up when the overall market is doing well and visa versa.
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Louis’s Answer

The Investment Advisor moderates the Financial Educational Forum. The Forum is designed to provide information about how investments work, how to navigate the economic client in which we find ourselves, the savings and investment circumtances which exist and financial and investment literacy.

You can join at https://www.facebook.com/groups/FinancialEducationalForum

The Investment Advisor has also started a you tube channel called The Investment Advisor Investment Center. You can find it at https://www.youtube.com/@theinvestmentadvisor545
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