Monday, 28 January 2008

Stock beginner guide – Learn the fundamental

Part 2

Stock is one of the most common forms of investment that people do. However, before you ever start, keep this in mind. Use only the money that you can afford to lose. Even you lose the money completely, it won't affect your life.

Next, if you are a beginner in stock, what do you do? Learn the fundamental and basic of stock investing!

You can start by doing research in the library. Get a couple of beginner’s book which teach you the basic concept of buying stock. Alternatively, you can go to the bookshop investment section and try to find a suitable book. Start at basic level and slowly progress up.

You can also turn to internet for the learning. But, it is usually more convenient to read a book than to read from computer screen. Once you have learned the basic concept, you can start to practice it. Take a few thousand dollars for try run. This would be your tuition fee. As your confidence and experience grow, most probably you would know what to do next. Investing is a continuous learning process.

After much reading, if individual stock picking is not your cup of tea, there is still another option. That is by buying unit trust. Many found that individual stock investing is too time consuming and tiring. By buying unit trust/mutual fund, you don’t have to do intensive research. Just pick a fund that is suitable for your investment objective and let the fund manager help you to invest.

You can buy unit trust from bank, financial adviser or online portal. Read up more on the basic of unit trust before you start.

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