Stock Market Investing 101

Stock Market Investing 101Everyone has different reasons for investing. Some want income for the here and now. Some want to build a portfolio for the future and retirement. Some want to be able to provide for their heirs, charities or other beneficiaries. Some may be looking for a vehicle to reduce taxes. Some may be investing for a combination of some or all of these reasons. For the person just starting out, there are key questions that must be addressed. The two most important being what are one’s goals and what to invest in?

There’s an almost infinite amount of investment vehicles and even more combinations! One can invest in the Federal government via US Treasuries. Each state offers municipal bonds, often tax free on many levels. There are stocks, of course. Stocks come in so many different varieties it can be overwhelming. The first step any new investor should take is to talk to a professional who can legally offer investing advice, such as a stock broker or attorney.

A subscription to a stock investing newsletter is a wise move if one is planning to make stocks a part of their portfolio. These are incredibly pragmatic and helpful tools for people just learning about the market. They are especially beneficial for people too busy or not yet knowledgeable enough to effectively research the information. Professionals in the industry often issue the newsletters, and for the beginner, subscribing to one is virtually a must.

There are hundreds of newsletters. If you know what kind of stock you want to trade, it will be easier to decide which newsletter(s) to choose. If you don’t know the difference between a blue chip or penny stock, a newsletter helps you get a feel for what’s available and gain an understanding of stock market basics. The letters offer advice on stock picks and other helpful information.

A stock investing newsletter is no fail safe against failure. The market is susceptible to countless forces and factors. A good newsletter will take that into account and, though not a guarantee for success, you will certainly be better informed, increasing your chances of picking winners.

Stock newsletters are often very accurate when it comes to penny stocks. These are a good way to make money very quickly. Blue chips are stocks more geared towards the long haul and increasing worth. Companies like IBM and General Motors, would be considered blue chip stocks. Speculative stocks offer the greatest payoff but the highest risks. The right tech stocks of decades ago, for example, made millionaires overnight. But that bubble eventually burst. Remember, information is power, but trading on the market is for real money, so proceed carefully and read the newsletters,

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