Stock Market 101: Investing for Beginners: 3 Hour Crash Course
By Edward Day
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About this ebook
A Foolproof Guide to Earning Your First Big Money in The Stock Market
Have you noticed that more and more people in your life are constantly talking about the stock market? Is this conversation appearing at all of your recent social gatherings with friends and family?
If so, you're not alone - Investing in the stock market is one of the smartest things you could do in 2020. Getting started has never been easier.
Are you sick of living paycheck to paycheck? Are you done wondering whether or not you'll have enough money to pay rent? Aren't you sick of eating fast food simply because it's cheaper than buying groceries?
Investing in the stock market is the answer to all of your financial problems.
Some people are scared to invest in stocks because they are afraid of the ups and downs.
Yet, if you look at the numbers, there is barely any other place with such a consistent annual return. According to S&P 500 the stock market has had an average 10% annual return on investments since 1962.
No more worrying about whether or not your retirement is enough. No more concerns if you're actually doing the best you could with your money. No more feeling undervalued and like you should be earning more.
By investing your money in the stock market, you take back your power and put your financial future in your own hands.
In Stock Market 101: 3-hour crash course, you'll discover:
- The astonishing truth behind what the stock market is and where it all began
- Who the major players of the market are and why you need to be owning shares
- Why the stock market fluctuates and how understanding this can earn you a killing
- The 5 step guide to opening your own brokerage account
- An empowered outlook for getting started with even the most shoestring of budgets
- The 10 best brokerages of 2020 and why partnering with them is the right move
- The 4 most valuable investing strategies for beginners
… and so much more.
Even the most basic understanding of the stock market can make you a killing. Just look at the story of Shehryar Shaukat, a 22-year-old businessman from Pakistan, who started investing when some visa complications kept him out of Canada and going to college.
The young man simply hopped on his computer and started making some trades to keep himself busy, now he's filthy rich and living the life of his dreams.
You don't have to spend a fortune to buy your first stocks. Just start by setting aside the $3 dollars you would normally spend on your daily cappuccino and invest the total at the end of the month in stocks.
Enough with all the wondering and worry. The time for you to take control of your financial future is now. Begin investing in the stock market, build yourself a reputable portfolio, and sit back and watch as your money simply grows.
If you're ready to claim ownership of your financial security and move forward into the life of your dreams, then scroll up and click the "Add to Cart" button right now.
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Reviews for Stock Market 101
2 ratings1 review
- Rating: 5 out of 5 stars5/5"This excellent financial primer is all about DUE DILIGENCE and some fundamental & technical analysis, which any stock market trader can conviently accomplish via applications like investing.com and/or online trading platforms akin to Acorns or Robinhood." -WSDB
Book preview
Stock Market 101 - Edward Day
Chapter 1: What is The Stock Market, and Why is It Important?
The stock market
isn’t corporeal, and it isn’t just one singular thing — instead stock market
is the collective term for all of the marketplaces (like the New York Stock Exchange or Chicago Board Options Exchange) where shares and securities are publicly traded.
It’s also the most reliable indicator of a country’s economic well-being. Countries whose stock exchanges show constant upward growth generally also show a gradual increase in gross domestic product (GDP).
The stock market’s purpose is to help companies to raise capital, but smart investors are able to make use of it in order to increase their own profits too. The stock market is incredibly ‘liquid’ which means that stocks are easy to buy and sell (especially when compared to other investments like real estate which can take months to buy or sell).
The biggest barrier keeping your average Joe from accessing the stock market is a miniscule knowledge deficit. People feel that they don’t know enough about the stock market, so they never buy shares, so they never feel like they need to learn about the stock market, and this ugly cycle just keeps repeating itself ad nauseam — it’s the reason why many people feel the stock market is inaccessible.
Luckily for you, we’re going to start bridging that knowledge deficit in this chapter. Keep your chin up, you’ll feel well-acquainted with this new world of investing in no time.
Getting to Know the Lingo
There’s no point in going any further until I cover some important terms pertaining to stock trading. The stock market has a language all its own, and it’s something you’ll need to be fluent in in order to truly feel that you’ve started down the road to mastery of it. Commit these terms to memory, and you’ll be speaking ‘trader’ fluently with ease:
12b-1 Fees: This is a fee you pay to a mutual fund (which is defined below) as one of the requirements of being a member. The money from it typically goes to paying the salespeople in the mutual fund’s commissions.
All or none order (AON): This an order you give your broker which he or she is only allowed to execute if he or she can execute it in full. An example of this would be if you told your broker to buy 100 shares in Apple before the end of the trading day under an all or none order — if there were only 90 Apple shares available for sale during the trading day, your broker would buy none of them because he or she would have been unable to fulfill your order of 100 shares in Apple.
Alpha: A stock’s alpha number represents whether or not it is outperforming the market in general. Alpha numbers usually represent the percentage by which a certain stock has outperformed, or underperformed, when compared to the rest of the market (a stock that has an alpha number of +3 usually means that it has outdone the rest of the stocks in that market by 3%, while a stock with an alpha number of -3 has probably experienced 3% less growth than the market average).
American depository receipts (ADR): ADRs are receipts that are issued to investors upon purchasing a foreign stock through an American stock exchange. ADRs trade as shares themselves.
Annual report: An annual report is a document that companies are obligated to supply their shareholders with every year. This document should contain information about the company’s financial and operating conditions, financial statements (like income statements, cash flow statements and balance sheets), and an auditor’s report (amongst others). You’ll use an annual report as part of your research into whether a company has the potential for further growth (and thus whether you should invest in its shares). Most companies have their annual reports uploaded to their websites, making them incredibly easy to find for potential investors.
Arbitrage: This is an investment strategy that involves buying shares at one price through one marketplace or exchange, and selling it at a higher market price through another. For example, you might buy a share through the New York Stock Exchange (NYSE) for $5, and then sell it again through The Nasdaq for $5.50.
Ask: The minimum amount of money that a seller is willing to accept for a particular share.
At the money: A stock is said to be ‘at the money’ when it’s trading at the price that you were planning to sell it at.
Authorized stock: This refers to the total number of shares that a company is allowed to issue. This number is always higher than the number of shares available for sale to the public as various role-players within the company will own large numbers of shares too.
Averaging down: Averaging down is an investment technique that you might use when you’re buying a long term stock. If you already owned 10 shares that you had purchased at $5 per share, and you saw the shares’ prices suddenly dropping to $4, averaging down would be if you went ahead and bought another 10 shares in the same company, paying less for the shares this time around and thus driving down the average amount that you paid per share as you now own 20 shares purchased at an average price of $4.50, instead of 10 shares purchased at $5 (which means that you’ll increase your growth ratio on paper when the market picks up again and the shares’ regain their original price).
Back-end load: This is a ‘penalty’ that you have to pay when selling shares in a mutual fund. It is usually calculated by taking a percentage of the total value of the stocks which the fund owns.
Bear market: When the stock market takes a dip and shares start decreasing in value, traders refer to this time period as a ‘bear market.’ It’s a good idea to buy stocks during a bear market so that you can profit off of their sale when the stock market recovers and the shares regain their value.
Bear raid: This is when shareholders of a particular stock sell their shares en masse very cheaply in order to drive down the stock’s value.
Beta: Beta is a number assigned to companies to help investors determine how risky investing in them would be. Markets have a beta of 1. Companies who show more growth than the market average have a beta of more than 1, while companies who show less growth than the market average have a beta of less than one. Thus, if you’re purchasing shares from a company with a beta above 1, you can be relatively sure that those shares will continue to increase in value over