|
Finance
Mortgages, pensions, loans, shares, savings |
|
|
|
|
|
|
Getting started with stocks
Getting started with stocks
If you’ve decided to take the risk and invest in the stock market, you need to know the basics. I mentioned devising a strategy in my last article and will now explain it in more depth.
How to start
So where do you start? Investing can be a complex process so it may be advisable to use a financial adviser. They will explain how the process works and carry out the investing for you. If you choose to do it on your own, you need devise a fool-proof strategy.
What is a strategy?
A good (and hard to find) definition of a investment strategy is: “An investor’s plan of distributing assets among various investments, taking into consideration such factors as individual goals, risk tolerance and horizon.” (Investorwords.com)
Planning your strategy
You need to know on what level of risk you’re prepared to take, will it be high, medium or low? You then need to decide whether the investment will be long or short term. The financial history of potential companies has to be researched.. This information is usually sourced via a third party for a fee. (e.g. Dun and Bradstreet)
Making the investment
To make an investment you can purchase stock directly from the company or through a broker. This is different to allowing the broker to carry out the process on your behalf.
The Portfolio
Once the research is done and you know where to invest, you can then start to build up your portfolio. This can be made up of as many investments as you want and can also include bonds and mutual funds.
Fiona Seymour-Jesse
SJ Copy
Useful Links
Motley Fool Strategies
http://www.fool.com/strategies.htm
Investorwords
http://www.investorwords.com/
Articles
Stock Investing for Profit (USA)
http://www.fintrend.com/ftf/Stock_Market/StockMarket.asp
Learn how to Invest (USA)
http://www.greekshares.com/
The finance pages of Business in Berkshire are for general guidance only and advice should always be sought before acting on any of the suggestions made
| DOWNLOAD | | [ Getting Started with Stocks ] |
|
|
