How to Invest in the Stock Market
Here are some basic things a novice should know before investing in the stock market: Your investment goals. What are you investing in? Is it for Retirement? For a down payment on a house? Or a child's education? Your investment goals will help you determine the types of investments you should make and how much risk you can afford to take. Know your risk tolerance first. How much risk are you comfortable with? The stock market is a volatile place, and there is always the risk of losing money. If you are not comfortable with losing money, then you should consider investing in safer assets, such as bonds or money market funds. What is your time horizon. When do you need the money, you are investing? If you need the money in the next few years, then you should invest in safer assets that are less likely to lose value in the short term. If you have a longer time horizon, then you can afford to take on more risk and invest in stocks. What are the differen...