Finance
A beginner’s guide to investing in stocks
Stepping into the world of stocks is both an exhilarating and daunting experience. While those with an analytical bent of mind enjoy learning and growing their investments and staying aware of changing trends, others need help to latch on and make profitable decisions. To make this easier, here are some tips that can help beginners find their footing in the stock market so that they can pick stocks wisely! There are no guarantees If there’s one thing beginners should know before investing in the stock market, it is that nothing is guaranteed. There is no assurance that a stock will perform well, which is why one must always exercise caution when investing one’s hard-earned money. Determine the investing goals Next, it is important to understand that everyone has different investment goals. Based on these goals, investors can be categorized into three main categories: Income-oriented investors These investors are focused on buying stocks in companies that pay good dividends regularly. These are generally low-growth options that provide limited returns. Focused on wealth preservation As people age, their appetite for risky investments tends to decrease, and the focus shifts to wealth preservation. Investors in this category look for stable blue-chip companies that offer returns even when times are tough.