{"id":13979,"date":"2022-10-25T15:46:15","date_gmt":"2022-10-25T20:46:15","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=13979"},"modified":"2022-10-25T15:46:15","modified_gmt":"2022-10-25T20:46:15","slug":"the-newcomers-guide-to-the-stock-market","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/the-newcomers-guide-to-the-stock-market","title":{"rendered":"The Newcomer’s Guide to the Stock Market"},"content":{"rendered":"

Investing may seem daunting for those who have never dipped their toes in it. But once you get started with some basic understanding of the stock market, it becomes easier. Here are our top five tips on investing for beginners.<\/strong><\/p>\n

You know what makes the stock market so great? It\u2019s that anyone can invest in it.<\/span><\/p>\n

No matter where you live or how much money you have, the stock market is a great way to help grow your wealth. And it\u2019s not just for the super rich\u2014it\u2019s also open to people who are starting out with smaller amounts of money. Plus, there are tons of different ways to invest, so no matter what kind of investor you are, there\u2019s a place for you in the stock market!<\/span><\/p>\n

Everyone knows that you can make a lot of money in the stock market if you know what you’re doing. However, most newcomers don’t understand how the market works.<\/span><\/p>\n

Here\u2019s what you need to know about the stock market before you begin investing.<\/span><\/p>\n

What is the Stock Market?<\/b><\/h4>\n

Stocks, also known as equities, are securities that give shareholders an ownership interest in a public company. It\u2019s a real stake in the business, and if you own all the shares of the business, you control how the business operates. The stock market refers to the collection of stocks that can be bought and sold by the general public on a variety of different exchanges.<\/span><\/p>\n

The stock market is made up of thousands of companies that raise capital by selling their shares to investors. These investors may be individuals or institutional investors like banks, mutual funds or pension funds. The value of these shares depends on a number of factors including earnings per share (EPS), return on equity (ROE) and dividend yield among others.<\/span><\/p>\n

Trading typically takes place on a stock exchange like the New York Stock Exchange or Nasdaq. Back in the day, trading used to take place in a physical location such as the stock floor. Now, almost all trading occurs virtually in the comfort of one’s home or office.\u00a0<\/span><\/p>\n

So what do you need to get started? First you must get a brokerage account, and from there you can begin making the right investments.<\/span><\/p>\n

Tip #1: Buy the Right Investment<\/b><\/h4>\n

You\u2019ll encounter many different market environments throughout your investing life, so don\u2019t get too caught up in whether or not now is the perfect time to get started.<\/span><\/p>\n

Buying the right stock can be challenging for “newbies”. Anyone can see a stock that\u2019s performed well in the past, but anticipating the performance of a stock in the future is much more tricky. If you want to succeed by investing in individual stocks, you have to be prepared to do a lot of work to analyze a company and manage the investment.<\/span><\/p>\n

Many advisors recommend the following investments for beginners:<\/p>\n