The stock market can feel like a foreign language, but it doesn’t have to be. Investing in stocks is one of the most effective ways to grow your wealth over time, especially for those who have decades before retirement. Stocks are part of an investment portfolio, and a well-diversified portfolio is critical to long-term success. Investing in stocks may require some patience as price fluctuations happen regularly, but over the long term, they tend to outperform other investments such as bonds and interest-bearing bank accounts. Learn About Stocks
Learn About Stocks: A Beginner’s Guide to Investing
To get started, it’s important to set clear investment goals and determine how much risk you’re comfortable taking in exchange for potential returns on your investment. Then, choose a broker that fits your investing style and open a brokerage account. It’s also a good idea to learn about investing strategies and tools such as technical analysis, fundamental analysis and diversification.
Once you’ve done some research, it’s time to start looking at individual stocks. For beginners, we recommend choosing blue-chip stocks (shares of large, stable companies like Apple or Coca-Cola) and companies that pay dividends (that’s the money they give you for holding their stock). These types of stocks are more likely to hold up during downturns. Over time, you can branch out into growth stocks and sector-specific investments, but it’s important to understand the risks involved. Be sure to reassess your risk tolerance and your investment goals on a regular basis to keep your strategy in line with your comfort level.