How to Invest Common Shares on the Stock Exchange?

by Elijah Levi Freelance writer and professional blogger who spec

Stock market

Investing in stock is a risky business market. However, there are many areas where you can invest and reduce or increase risk. Usually, high risk, high reward. Investment areas options, mutual funds, common stocks, preferred stocks, government bonds, etc. Government bonds and mutual funds are risky lists. However, the returns on these investment vehicles are very low. Returns typically range from 3% to 5%. In which area I specialize in common stock and the focus of this article is about investing in common stocks. Investing in seed stocks carries a higher risk than government bonds and mutual funds. However, if you do your homework properly and thoroughly, you significantly reduce the risk, and the rewards are often great.

Preparing to Invest in the Stock Market

Before you can make an investment in the stock market, you need to open an account with a reputable stock brokerage company. It is preferable to use a bank with an intermediary section. This is because you have easy access to your money. This means that you can instantly transfer funds from your agent account to your bank account. Otherwise, you should be mailed money when you with money from the agent account.

You'll then need to sign up to access your account online. After this is done, you need to have real-time access to the stock market. Most reputable brokerages will provide you with this service depending on your deposit. The more money you make, the more services you get for free. Note - You don't need 15 minutes to delay real-time stock prices. That's not good for you. You need real-time stock prices. Once you're ready for this setup, rock, and roll.

Signage Stock Selection

The next thing you need to do is find the stocks you want to invest in. This section is time-consuming. Here's what I do to find my stocks: At the end of each working day, I looked at the stock market and looked at the best-performing stocks of the day. In doing so, you will receive a stock code that is required for purchase, sale, and research of stocks, etc.

The next thing you want to do is research every stock you're interested in. You want to look at financial statements and balance sheets for 5 years. Financial statements will tell you whether the company has made money or lost money. Also, a financial statement shows you a company sales trend and expense trend. The balance sheet will tell you if the company has money and assets or is in debt. If a company's obligations are 25% of all assets, it is a financially sound company. However, if a company's obligations are 75% of its assets, this company will have serious financial debt and very risky investment. To succeed in the stock market, you need to be knowledgeable about financial statements and balance sheets.

Then I want to investigate what a company does as a business. Also, I want to know who the stockholders of a company are, who is the CEO (chief executive), who is on the board, the company pays dividends, etc. Also, I want to check all the news headlines about a company for about 5 years. After all, this is done and the company is satisfied, but this company in its portfolio. You do the same for each company you're interested in. Note - you have to diversify your portfolio. Invest in companies in different types of businesses. For example, mining, manufacturing, services, etc. - investing in companies in various business segments If you have a number of companies in your portfolio, you are ready to do business.