Lessons on Investing in Stocks
There are many books, investment magazines and websites owned by well-know and reputable companies where to learn some basic investing lessons. To learn lessons on investing in stocks one first must learn the five basic questions for which they should discover their answer, not someone else’s answer. The basic questions are What, Why, When, Where, and How in relation to investing in stocks which in reality is investment in your own life first.
The basic lessons for investing in stocks are the same as those for investing your money in anything. Children today as part of the kindergarten through eighth grade curriculums are learning the first lesson of investment is saving. They are learning to save and learning about investing in themselves, first. The following steps can teach us the first lesson for investing in stocks, which is- to invest money we must save money first. Investing in stocks with money earmarked for payment of monthly bills and other financial responsibilities is the first mistake some unprepared investors in stock will make. Below is a plan to follow which can free up some money for someone wanting to learn the lessons for investing in stocks.
Step One: learn how to save money by saving some amount of money every week. Put your money in a nice container mark it clearly as My Pay/Savings Account. Step Two: Pay yourself before you pay anyone. This is your savings; it can be small, but it is savings. Step Three: Pay bills due each week (online/writing checks- follow the lesson steps each week) and on time. Avoid the extra cost of overpayment or finance charges. Subtract the difference between paying on time and paying a service charge or fiancé charge. Step Four: Add the service charges and fiancé charges from lesson three, to your savings. This money is savings and is part of your pay. Step Five: Strictly carry out each step each week, faithfully.
Follow all steps for three months as you read, study, ask others what they think and know about investing in stocks. Learn about investing in general while saving and learning a little about investing in stocks. Allow the process to become a personal ritual. We all had to learn to crawl before we learned to walk. You are crawling toward investing in stocks and practicing the basic lesson of self-discipline, a vital lesson when investing in stocks. Lesson Two is only My Pay/Savings Account monies are free to invest in stocks during the first six months of investing.
As the end of three months draws near, plan a special time to open your personal My Pay/Savings Account container. Invite your spouse, significant other, or a friend to join you. Open and count each penny, nickel, dime, and compliment your self-discipline and commitment. Rejoice and be glad you have free money and can invest it in stocks with a clear conscience.
Whatever the amount, it is yours for investing in stocks. The safest place to begin is in Penny stocks where a $100 or less can suddenly explode into quadruple earnings in a very short time. Penny stocks recognized for their volatility can suddenly soar to 400% increase in a short time span, often a few hours after he markets open. Lesson Three: When the balance in your stock account drops below the amount with which you opened the account, close the account.