Part 1
Getting Started with Stock
Investing
IN THIS PART …
Brush up on stock basics, including how to calculate market
capitalization and pick winners.
Find out what you should do before you invest your first dollar in
stocks. Evaluate your current financial goals and situation.
Know the different approaches to stock investing and which
approach may be right for you.
Figure out the risks of stock investing and discover the best ways
around them. Understand the concept of volatility.
Chapter 1
Introducing the World of Stock
Investing
IN THIS CHAPTER
Knowing the essentials of stock investing
Getting ready to purchase stocks
Using what you know to pick successful stocks
I think that there are great stock investment opportunities in virtually any
time — even for newbies. There are great stocks to help you build your
wealth (or provide dividend income) in both up and down markets. In
fact, a bear market (a long period of falling prices) can be a great time to
buy stocks because they’re cheaper (think “sale!”). The key is knowing
what to do (and even why), but that’s what this book is for!
Today’s stock market is a little puzzling, but it can still be rewarding. I
can only promise that if you follow the advice in this book, you’ll do
much better than the average investor. Note that patience and discipline
count now more than ever.
The purpose of this book is not only to tell you about the basics of stock
investing but also to let you in on solid strategies that can help you profit
from the stock market. Before you invest, you need to understand the
fundamentals of stock investing, which I introduce in this chapter. Then
I give you an overview of how to put your money where it will count the
most.
Understanding the Basics
Investing in Stocks For Dummies (For Dummies (Business and Personal Finance)) by Paul Mladjenovic