What basics does one need to learn before investing in the shares and stock market?
You need to firstly ask yourself some questions like whether you have enough money to invest and enough in reserve. Then you need to consider your investment goals – short term? long term?. You also need to consider how risk averse you are as this will affect the types of stock you invest in and for how long. The next task is to learn about the stock market, including stock market terms and the different types of stock. The mechanics of buying and selling through an online broker needs to be understood. And finally it becomes a question of stock selection, the tricky bit. Some people suggest that undertaking some virtual or fantasy investing is a good idea as you can practise buying and selling while increasing your knowledge and understanding of the stock market without losing money. However, there is nothing like real money to focus your mind. Stock investing is not about playing games! The link below also provides information on how to estimate the fair value of stocks as it is impo
