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Stock Market For Dummies

Updated on June 28, 2010

There Is More To Learn Than What's In A Book

 The "Dummies" series of books are popular and there is one for the stock market too. The Stock Market For Dummies is probably a decent place to get started learning about stocks but don't be fooled into thinking it is that easy. Some people spend most of their lives trying to figure the market out and fail.

Simply put, there is no substitue for experience and that is especially true for stock investing. The market is never the same two days in a row and although you can learn from history, what has happened in the past is probably not going to happen in the future.

Industries And Stocks Are Changing

The world is changing at a rapid pace, much more quickly than it did 100 years ago. Just think how much everything is different since personal computers and the Internet were invented. Companies now and the technologies they represent have totally changed many aspects of our lives.

This means the things we are investing in as stock owners have changed as well. In years past, it was a good strategy to buy a good stock and keep it 10 or 20 years. You could usually buy it and forget about it and when you looked at it again years later, chances are it would be up.

Now though, that buy and hold strategy might not be quite as sound. If you buy a stock today, you really should keep a close eye on it to keep abreast of everything. With new technologies advancing and being invented quickly, sometimes what appears to be a solid stock today turns out to be something that is not around tomorrow. This means you have to be ever vigilant to make sure you stay up to date on your stock investments in case something needs to be bought or sold.

Never Invest Too Much

 A couple years ago (around 2008) we all saw first hand what a true stock market panic looked like. In a short span of time, the market went from over 14,000 down to under 8,000 and a lot of money was lost by a lot of people.

This was a first hand look at why it is important to invest wisely and to never have too much of your savings in stocks. People should decide what they are willing to risk and know that when they buy stocks, they can indeed lose it.

Too many people had too much of their life's savings in stocks and they lost money they needed. This has altered many people's lives as they now find they will have to continue to work long after retirement age.

One thing all stock investors should learn is to be smart with their money. It is alright to take risks but only do that with money you really don't need for something else.


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    • tjhooper profile image

      TJ Hooper 7 years ago from dublin Ga

      good hub for the very basics of the stock market. Your next hub should go more into detail about how to invest in the market and what to look for :)