by Lina Martinez

Years and years of people investing in the stock market has shown us that stocks can be one of the easiest ways to get a good return on our financial investment. It can be a strategy for building wealth, as well as funding things like small businesses or retirements. The good news is that you can build up your portfolio right from the comfort of your own home. Is it all too good to be true? Why aren’t more people doing it? Well, first thing is first, what are stocks?

When you have stock in a particular company, you are legally owning part of a company. And as a result, you will be entitled to a portion or share, of the profit or less of that company. So you need to choose wisely in order to get the best return on your investment, as well as not selling your stock at the wrong time, as when the markets and economy fluctuates, so does the stock price.

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Making money is in part about buying the stock prices at the right time, and choosing stocks that are going to rise. And while that isn’t true, being able to really make a good portion of money is much more about investing in the long term. If you are constantly looking to buy and sell your shares, then it will be trickier to make money, especially if you are buying and selling on practically a daily basis. Time is what you need for shares to really get a good return, so you need to have a certain level of nerve to assess when the right times to buy and sell are.

The good news is that there are lots of places online to get advice and tips on stocks and shares. You could even sign up to a trading platform and start with a demo account if you’re new to it all and need a little help along the way. But keeping on top of business and the news can give you some hints and tips about where you can invest your money. You could also look to buy from brands and companies that you know and use; when you’re acquainted with them, then you know what they are about and know how well they are doing. Just take your time if you’re unsure.

Trading and investing in stocks and shares does come with an element of risk. But the risk can be a calculated one if you have thought things through and planned it all out. When you invest, you do need to do research well, as well as practicing a little patience. One of the world’s most famous traders Warren Buffet has been quoted saying that investing is about being fearful when others are being greedy, and being greedy when others are being fearful. So take some time, educate yourself and research things, and it can pay off in the end. What other tips or advice would you share to a newbie investor?