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By: Ikedi Ani-okoye.

Introduction to stocks and Shares

Stocks and Shares are what make the stock market function in a word they are the stock market. So a stock basically is what is being traded it can be any thing from honey to sugar. There two ways to earn money in stocks and shares, they are investing or trading. if you buy sell stocks, shares, futures with the intention of keeping them for a short period of time this is known as trading. If you hold the stocks and share with intention to keep them for a long period of time this is known as investing.

Selling and trading Socks and Share

When stocks and shares are mentioned the first thing on the minds of people is money! but is it that simple in truth there is no quick way of getting rich with stocks and shares that works. If this was the case everbody would be driving bentleys and porsches (or the car of their choice!) . It is of course possible to make money selling stocks and shares but it has to be done strategically. So profiting with stocks and shares is for the patient, careful and intelligent investor.

Ways to sell and trade Stocks and shares

when getting involved in Stocks and shares the best time to buy is when their prices are low after which you wait for the price to rise over a long period of time then you sell the stocks and shares at a profit. If you intend to be a profitable investor it is unwise to concentrate on the immediate ups and down pricing of stocks and shares. You should be planning your strategies for the long term periods.

What to avoid with stocks and shares

The clever investor will never buy stocks or shares when there is evidence of prices going up, this is a bad strategy. If stocks and shares are bought when when prices are at their peak, the investor will only be holding stocks and shares that have a declining price and you will ultimately end up with a loss.

Some rules to follow when investing stocks and shares

When investing do not invest more than 3 percent of the total in your portfolio in one stock. a good successful investor should be making all efforts to protect their intial investment. If a bad decision is made, be fast to accept and cut the loss immediately by five to fifteen percent do not wait thinking that the situation might improve. keep an eye on the performance of the stock and do not ignore the “stop loss point” to limit the loss because the stock may not perform as expected.

CONCLUSION

Finlly always take note of all the sign related to the market that your stocks and shares are located in. Do not be tempted to deviate from the plan because of variations in data during the trading day. Relying on these types of fluctuations is misleading and will inevitably lead to loss. Try to stay calm at all times stress is often the source of bad decision. so find ways to refresh your mind during the day.