|
Stocks for Dummies is a follow up to our article on Investing for Dummies because it shares many of the same ideas and concepts. The sheer number of tasks each of us takes on everyday is astounding. Our lives are busy and complex, so when something can be broken down and simplified, it gives us back the time we find so scarce and valuable.
Stock Research for Dummies
Oftentimes, people have trouble getting started when it comes to new concepts. They know, or think, they want to start investing in stocks, but they simply do not know where to begin. Fortunately, we've already put together a series on stock research that should help the novice investor get a good feel for how to go about picking stocks.
In Stock Research Part I we cover the basics of how to identify an excellent business or industry. The number of publicly-traded companies is large, so you need a way to quickly filter, or eliminate, companies from consideration. In this publication, we explain how to avoid companies that are in commodity-like industries, or an industry that has so much competition that prices are too low for the manufacturers to make reasonable profit margins.
In Stock Research Part II we explain how to calculate the intrinsic value of a company, and give an example calculation so that you know how to apply this lesson in the real world. We also talk about return on equity, a measure that every investor should be familiar with when evaluating stocks. That's why in Stock Research Part III we take a deeper look at earnings per share, and use this information to help project a future stock price for the company we are evaluating.
In our last publication in this series, Stock Research Part IV, we review everything that was learned in the first three lessons, and run through an example from start to finish. By the time the reader is finished with this series, they know how to research stocks - even dummies!
Dictionary for Dummies
There is no doubt that the world of stocks is full of unfamiliar descriptions and jargon. The more information you read, the more questions you might have about certain phrases or words used in an article. We have worked hard to put together what we think is one of the best investment dictionaries available on the Internet.
There is no doubt that you will find websites with more definitions than ours, most of them single-sentence descriptions for seldom-used terms. But we doubt you will find better explanations than ours anywhere else. So take a look at our investing dictionary, and decide for yourself.
Stockbrokers for Dummies
Now that you've picked your stocks, and are ready to start investing in the market, you are faced with a final question: How are you going to purchase those stocks? We have that question covered too. In our article Investing Money, we explain the difference between investing and saving. We also run through some of the factors you need to think about before engaging the services of a stockbroker.
Now this might sound like a trivial matter, but the fact is that choosing the right broker is an important part of the process. If you wind up with a less than honorable broker, you can quickly go through your investment money, and have nothing to show for all your hard work. Depending on the types of services needed, broker fees can quickly erode any return on your investment.
We Were all Dummies at One Time
We've joked around in this article by using the term "dummies" to describe the novice investor in stocks. Keep in mind that everyone starts out with very little knowledge about stocks and investing. It is not something that is instinctual, or a topic that is taught to everyone at birth.
Individuals that are truly successful have worked hard to get where they are today; and they've made many mistakes in the process. Learn all you can, and you will minimize your failures and maximize your chances at successfully picking stocks. Keep reading, and make an investment in your knowledge too.
About the Author - Stocks for Dummies
Copyright © 2005 - 2011 Money-Zine.com
|
Home 
Investing 
