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I. How To Invest In Stocks 4.

Set a budget for your stock investment


New investors often have two questions in this step of the
1. Decide how you want to invest in stocks process:
 How much money do I need to start investing in stocks? The
There are several ways to approach stock investing amount of money you need to buy an individual stock
“I’m the DIY type and am interested in choosing stocks and depends on how expensive the shares are.
stock funds for myself.” Keep reading; this article breaks down things  How much money should I invest in stocks? If you’re
hands-on investors need to know. Or, if you already know the stock- investing through funds you can allocate a fairly large portion
buying game and just need a brokerage, see our roundup of the best of your portfolio toward stock funds, especially if you have a
online stock brokers. long time horizon.
“I know stocks can be a great investment, but I’d like
someone to manage the process for me.” You may be a good 5. Start investing
candidate for a robo-advisor, a service that offers low-cost  Stock investing is filled with intricate strategies and
investment management. Virtually all of the major brokerage firms approaches, yet some of the most successful investors have
offer these services, which invest your money for you based on your done little more than stick with the basics.
specific goals. See our top picks for robo-advisors.
Once you have a preference in mind, you’re ready to shop for an II. How To Make Money In Stocks
account. 1. Play the stock market.
Day trading is not for the faint of heart. It takes grit and
2. Open an investing account determination. It takes understanding the different market
Generally speaking, to invest in stocks, you need an investment forces at play. This isn't something intended for amateurs.
account. For the hands-on types, this usually means a brokerage But, if learned and learned well, it is a way where you can
account. For those who would like a little help, opening an account quickly -- within the span of hours -- make a significant
through a robo-advisor is a sensible option. We break down both amount of money with a relatively small investment.
processes below.
2. Invest in a money-making course.
3. Know the difference between stocks and stock mutual funds Investing in yourself is one of the best possible investments
 Stock mutual funds or exchange-traded funds. you can make. While you might not be able to pinpoint an
These mutual funds let you purchase small pieces of many actualized return on investment, there's no money that's
different stocks in a single transaction. Index funds and ETFs better spent. Invest in yourself. Invest in your education.
are a kind of mutual fund that track an index Learn. Adapt. Grow. Discover what you're passionate about.
 Individual stocks
If you’re after a specific company, you can buy a single share 3. Trade commodities.
or a few shares as a way to dip your toe into the stock-trading Trading commodities like gold and silver present a rare
waters. Building a diversified portfolio out of many individual opportunity, especially when they're trading at the lower end
stocks is possible, but it takes a significant investment. of their five-year range. Metrics like that give a strong
indication on where commodities might be heading.
4. Trade cryptocurrencies. stocks are- and more importantly- what the company whose
Cryptocurrencies are on the rise. While trading them might stocks you want to buy is all about. You should also have an
seem risky, if you hedge your bets here as well, you could idea about what the best time is to invest in the stock market.
limit some fallout from a poorly-timed trade. There are
plenty of platforms for trading cryptocurrencies as well. But 2. Follow the ups and downs of the market
before you dive in, educate yourself. Probably the most proverbial thing about the stock market is
its fickle nature. The stock market keeps on going up and
5. Use peer-to-peer lending. down with time, so you should trace the trends before
Peer-to-peer lending is a hot investment vehicle these days. investing your money. Buying stocks in a company when the
While you might not get rich investing in a peer-to-peer market is down is not a good idea- it can result in losses.
lending network, you could definitely make a bit of coin.
Which lending platform do you use? Today, there are many 3. When the stock market goes down, sell your stocks
to choose from, but the most popular ones include Lending A time will come when it will be the most profitable for you
Club, Peer Form and Prosper. to sell off your stocks. Do not cling on to your stocks when
the market keeps going down. You should always sell off your
6. Trade options. stocks when the market crashes to avoid losing even more
When it comes to options, Tom Sosnoff at Tastyworks says, money.
"Trade small and trade often." What type should you trade?
There are loads of vehicles, such as FOREX and stocks. The 4. Hold on to your stocks when the market rises
best way to make money by investing when it comes to Similarly, there will be a time when the stock prices are
options is to jump in at around 15 days before corporate soaring. In this case, do not sell off your stocks. Selling of the
earnings are released. What type should you buy? Money stocks as soon as the price rises is a bad idea. Instead, you
calls. should wait till the price hike is complete, and then
contemplate selling off your stocks for maximum profit.
7. Flip real estate contracts.
Making money with real estate might seem like a long-term 5. Maintain common sense
prospect, but it's not. There are ways you can take as little as It is important to understand that the stock market is not a
$500 to $1,000 and invest it in flipping real estate contracts magical moneymaking machine. Profits take time to come, so
to make money fast. How? Use a system like Kent Clothier's do not assume that money will start pouring in as soon as you
REWW to first understand how the market works. It'll then lay your hands on the stocks. Common sense is your friend
provide you with the data and tools to identify vacant homes, when you’re investing in the stock market, so always weigh
distressed sellers and cash buyers. out the pros and cons of a decision before taking it.

III. Golden Rule In Investing In Stock 6. Invest in multiple companies


1. Do your research thoroughly Do not invest all your capital in the stocks of one company. It
This is the primary, preparatory step. Before investing any is always a good idea to buy small amounts of stocks in
money, you should have an acute knowledge about what multiple companies. For example, you can buy stocks in the
transportation industry, in the commodities industry, in a  The Philippine Stock Exchange, Inc. is the national stock
company in Japan, in another company in the US, and so on. exchange of the Philippines. The exchange was created in
1992 from the merger of the Manila Stock Exchange and the
7. Keep your spirits up! Makati Stock Exchange. Including previous forms, the
It is easy to feel disheartened when the market goes down. exchange has been in operation since 1927. Market cap: ₱
But you need to be optimistic and practical. Since the market 14.69 Trillion (1st Half 2019); $ 253.59 Billion (2018)
can change daily, you should be prepared for change at all
times. Just like GMAT preparation, have a backup plan ready  The Nasdaq Stock Market is an American stock exchange. It
in case the market crashes, and never let go of your hopes! is ranked second on the list of stock exchanges by market
capitalization of shares traded, behind only the New York
IV. Stock Market Stock Exchange. Market cap: $10 trillion
A stock market, equity market or share market is the
aggregation of buyers and sellers of stocks, which represent  The New York Stock Exchange is an American stock exchange
ownership claims on businesses; these may include securities listed located at 11 Wall Street, Lower Manhattan, New York City,
on a public stock exchange, as well as stock that is only traded New York. It is by far the world's largest stock exchange by
privately. market capitalization of its listed companies at US$30.1
The stock market refers to the collection of markets and trillion as of February 2018.
exchanges where regular activities of buying, selling, and issuance of
shares of publicly-held companies take place. Such financial activities  London Stock Exchange is a stock exchange located in the City
are conducted through institutionalized formal exchanges or over- of London, England. As of April 2018, London Stock Exchange
the-counter (OTC) marketplaces which operate under a defined set had a market capitalization of US$4.59 trillion. It was
of regulations. There can be multiple stock trading venues in a founded in 1571, making it one of the oldest exchanges in the
country or a region which allow transactions in stocks and other world. Market cap: US$ 4.59 trillion (April 2018)
forms of securities.
 The Toronto Stock Exchange is a stock exchange in Toronto,
V. Description Of Trading In Stock Market Ontario, Canada. It is the 9th largest exchange in the world
Trade in stock markets means the transfer (in exchange for by market capitalization. Based in the EY Tower in Toronto's
money) of a stock or security from a seller to a buyer. This requires Financial District, the TSX is a wholly owned subsidiary of the
these two parties to agree on a price. Equities (stocks or shares) TMX Group for the trading of senior equities. Market cap:
confer an ownership interest in a particular company. $2.3051 trillion (March 30, 2017)
Participants in the stock market range from small individual stock
investors to larger investors, who can be based anywhere in the
world, and may include banks, insurance companies, pension funds
and hedge funds. Their buy or sell orders may be executed on their
behalf by a stock exchange trader.

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