If you have never purchased stocks before, then you need to read this first. Yes, stocks are a great way to invest your money but they are still risky if you don’t know what you are doing. It is because of this that I recommend that you learn a little bit about stocks before you put a penny into them.
Before I get into the four tips for first time stock investors I just want to make sure that you have money in savings first. The reason I say this is because a stock investment should not be considered a savings account as they carry risk.
Don’t Buy Before Doing Research – Just like you wouldn’t buy a property without first doing your research, likewise if you don’t research a stock, then you won’t know the first thing about it. What most people don’t understand is that all stocks carry different risks and rewards and you need to know that in order to make the best decision. There are courses you can take to learn how to research companies. I highly recommend that you take a reputable course if you are planning on trading stocks for a living. If you are married, it’s a good idea to both take the course so that you will both understand the risks involved with investing.
