Stock market for dummy - Dummies guide to investing in the stocks and get rich

 Stock market is one place where you can make enormous amount of riches and this can be done simply by having two simple actions and those are opening an account with a stock broker as well as assessing your risk profile. 

Step one of opening you account with the stock broker is very easy and you will just need your personal details and you can go online to any of the so called online discount brokers like Ameritrade, E-trade or Sharebuidler and even Zecco or Fidelity . Then put the money in your account and start trading. I would say that initially put in a small amount say $500 or $1000. Then start investing in some good shares. You can start by investing in good companies like Wal-Mart or Exxon Mobil or Apple. After that now start tracking the share price of the stocks on a daily basis. If you see that you have made a profit then you can sell the stocks for decent amount of profits. This tracking can be done with the help of an in built portfolio tracker. It will automatically get built and will show how much you have made till now and how much is your profit or loss in dollar terms and also how much is the percentage of profit.

I would say the most major thing that you need to understand  is the risk profiling because the amount of risk that you can have and the absorb will determine what kind of stocks you can buy as well as what kind of trading strategy would you want to have.

 Getting rich off the stock market requires this. If you large amount of money that is available with you and you can initially absorb some losses I would say them pick a few volatile stocks and do some amount of momentum investing. If you are a person who has no money cushion and would only like to profits and then pick stocks which will be gainers in the long term. >

In stock market terminology the first kind of trading is known as short term investing and some also call it day trading or even momentum investing. Momentum investing means that you will invest in stocks which are going up on a daily basis and once you made your money you will be shunning them. The second kind of strategy that is there is the fundamental analysis strategy and in this you will research the industry and based on the potential of the industry as well as the company you will buy the shares in the hope that it will make you good amount of money in the long run. This is also known as the value investing as made popular by Benjamin Graham as well as Oracle of Omaha Warren Buffett. 

Then you need to understand how the stock market works and that will hopefully help you make good amount of money based on the understanding NASDAQ or the understanding Dow Jones market index. If you are a totally passive investor and do not want to do anything in the stock market then the best thing to do is to make sure that you at least invest in then mutual funds and hopefully before doing that read the mutual funds for dummies guide. If you are one of those who will be investing in sophisticated instruments then go and learn the etf for dummies as well as try the forex for dummies or even the futures and options for dummies. There is simply no dearth of options that are there as far the investing and making money options are concerned. In fact the last category of stocks called the penny stocks are the most risky but most money making stocks. You need to be very careful before investing in the penny stock market. But as they say high risk and high gain.