Buying stocks is not difficult, but you’ll need a little guidance if you haven’t done it before. On the other hand, making money consistently from buying stock can be very difficult. Most mutual funds underperform the index, which means purchase shares online. even professionals don’t find this easy. So take everything you read with a grain of salt. Do nothing until you know the kinds of to buy and under what circumstances to sell. Go to the local library and search online to find books and other resources on stock investing. A few excellent books to start with include ’The Intelligent Investor’ by Benjamin Graham, ’ Security Analysis’ by Benjamin Graham and David Dodd, and ’Common Stocks’ by Philip Fisher. Also see Invest in . The rule of thumb with is to buy low and sell high. You want to buy a stock when it’s affordable and sell it when it’s costly. Say that you buy 100 shares of stock at $15 each. That’s a $1,500 investment. If, after two years, the has risen to $20, your $1,500 investment has turned into a $2,000 investment, giving you a $500 profit. Say that you buy 100 shares of a at $50 each. You’ve made a $5,000 investment. If, after two years, the has fallen to $25, your $5,000 investment has turned into a $2,500 investment, giving you a loss of $2,500. purchase shares
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