Investing in a stock market is not as easy as you think. There are a lot of points to be kept in mind before you invest your money in the stock market. Most people are wary of investing here as it is involves a great deal of risk. But with the advent of the internet, there are numerous sources that provide you with valuable tips about how to invest wisely in the stock market.You will also come across umpteen websites that offer you all the required data especially for novices who want to try their luck here. You find that you also get stock market tips on your cell phone which is a real boon. Another place to look for important stock tips is the news papers where you will get all the news about the prevalent rates.You will also find that you can get free stock tips from many sources also. But remember that you cannot completely depend on these free tips as it can be influenced by a particular company who wants to attract customers their way. One of the most reliable sources of getting stock tips is from a stock broker, but they come for a nominal fee and are not totally free.Most importantly remember that you have to conduct a through investigation about the company you plan to invest in. It is always advisable to put your money in well known companies whose stocks are on the rise, as the chances of losing money when investing in such companies is comparatively less.Never sell your stock for a lower amount than you bought it for. Always sell for a higher rate than the amount you purchased it for. Always invest in different stocks instead of putting all your money in a single company. Diversity is a big safeguard against losses.
Investing in stocks and bonds is one of the best ways to become wealthy in today’s day and age, because of the wonders of compounding interest. A wise investment can give you the riches of world whereas investment in an already mature stock can take every single penny out of your pocket. Investing stocks and bonds gives you long time financial stability.What are stocks?Shares of a company are referred as stocks and if you hold a stock of a company you become a stockholder. A stockholder owns a proportion of a company, and he may be paid a share of the company’s earnings in the form of dividends. Stocks are high risk high reward.What are bonds?These are mainly issued by the government and those who buy these bonds are basically lending money and getting paid as per fixed interest rates. Bonds provide fixed income on investments.Before investing in stocks and bonds you must understand the difference between trading and investing. Investing is when you keep your money in one particular share and wait for months or years for the stock to mature, whereas trading is when you invest or buy a particular share for a short period of time, may be days or couple of weeks.Investing in stocks and bonds becomes another means of income. Sometimes people choose to invest in real estate, but that is equally expensive and takes a large chunk out of your pocket in brokerage. Stocks and bonds are seen as a better way of investing for future, for retirement, to buy luxuries and of course houses and apartment.Investing in stocks and bonds have been made fairly easy now with tips, advice, technical charts, graphs and counsel available online and over the phone. You must keep the track of the company’s performance as well though the broker will be informing you about the stock and its movement.Remember, when it comes to investing, nobody can do this better than you can. The world’s top investors all have educated themselves financially in order to profit from the market.You will never make as much money relying on other people as you can yourself. Do your own research, and find the right stocks for you and your portfolio to help you become wealthy.