Jan 11
27
Question by Sonali: How can i start learning about stocks/shares market?
I am a complete newbie. I want to start investing in shares/stocks.Can u guys suggest a good place to start like an online share account or any good books. something like ABCD of shares/stocks. And how much percentage of my income should I invest in shares. I am below 30 yrs so I am willing to take some risk.
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Best answer:
Answer by S
Shares of stock is what you would buy and sell to make money. You do that through a stock broker. Or you can invest in mutual funds through a mutual fund family. You buy it at a price and sell it at a higher price or you sell short at price and buy it back at a lower price to be profitable. You need to position size through money management and not load the boat on one issue. And use stop losses for risk management. There is no guarantee you will make money.
You will have to develop your trade plan or system that tells you when to buy and when to sell. You can use company fundamentals or stock price technicals or a combination of both. Your broker should have some educational resources and stock scanning tools. Check those first and then sign up for free at moneyshow.com and place topics in the search box to get the links to those free videos and podcasts for you to watch and listen.
You can open an account with an online discount stock broker and use their resources to educate yourself and scan for stock picks. First paper trade those picks on their virtual/paper trading account to get a hang of buying and selling and to see if your strategy is making you money consistently.
Know better? Leave your own answer in the comments!
