So you’ve decided it’s time to invest in the stock market. You have a firm understanding of how it works and now you’re looking for your first “big hit”. Look no further, this article here is going to explain everything you need to know about finding that perfect company destined to become the next Microsoft or Apple! stock market work?
How do stock prices work?
First let me explain a little bit about how stock prices work, each share of a given company’s stock is worth a certain amount. This price varies every day due to changes in the economy and other factors, but I don’t want to overload you with too much information so let’s just say that the value changes depending on what people are willing to pay for it.
How does the stock market work?
Now that you have a basic idea of how the stock market works, it’s time to start looking for a company! First, let me just say that I don’t recommend you buy your first stock from an actual brick and mortar store. They make money off every sale and therefore will always try to get you to buy their most expensive shares.
Instead, I suggest you buy stock online through a trading website like search for the best stocks to buy right now, you will find many websites at the top of Google or your web browser. Minimum it costs you 2 dollars to make any trade and there are no extra fees of any kind!
How do I pick my first company?
Now that you have an idea of how stocks work and how to find a company, what’s next? Well, the first thing you need to decide is which type of stock you want to buy. I suggest you start with…
sector investing! Sectors are different parts of the economy such as technology or restaurants and no matter where they make their money, having even a small piece of ownership in them can be very profitable if you do it right.
How do I find a company?
To find which sector is currently the most profitable, all you have to do is visit trading stocks and do a quick search for “top-performing sectors”. Once you get your list of sectors simply pick one that looks interesting! If you don’t want to waste too much time searching for a sector, I suggest you choose “Online Retail” since this is my personal favorite.
How do I pick the right company?
Once you have chosen your sector, all that’s left to do is find a company in that sector! You can usually tell which companies in that industry are good by looking at their price. For example, an oil company will always be cheaper than a technology stock.
Now that you have learned how to pick your first stock, it is time for me to explain the most important thing about investing…
How do I make money?
The secret to making big bucks on stocks is finding companies that grow exponentially and then selling before everyone else jumps on the bandwagon.
How do I find companies that are growing exponentially?
It is very hard to predict which specific companies will become hot stocks, but there is one foolproof way of knowing when a company becomes “innovative” enough for exponential growth…
If you’re looking to find the next hot stock, it could be as easy as examining your behavior. Analyzing how we invest ourselves in a company or brand can help us spot patterns and trends that may indicate an opportunity for investing success. For example, if we see our friends using a particular product all of the time on social media, there might be something worth exploring. Or if someone has been successful with their investments recently and they seem like a trustworthy person based on what we know about them, then following their lead is also worth considering when making future investment decisions. It never hurts to take some risks; after all, only one out of every three stocks makes investors money!