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How to start stock investment as an absolute beginner?

What is stock investment?

Stock investment is the process of buying and selling stocks, or shares of ownership in a company, with the goal of making a profit. When you invest in stocks, you become a shareholder in the company and are entitled to a portion of the company’s profits and assets. The value of your stock investment will fluctuate based on the performance of the company and the overall stock market. Stock investors can earn money through dividends, which are payments made to shareholders, or by selling their stocks for a profit. Stock investment is a common way for individuals to save and grow their money over the long term.

Why investing in stock is a good idea?

Investing in stocks is a good idea for several reasons. First, stocks have the potential to provide a higher return on investment compared to other types of investments, such as bonds or savings accounts. This is because stocks represent ownership in a company, and as the company grows and becomes more profitable, the value of its stock will typically increase. Second, stocks are a key component of a well-diversified investment portfolio, which can help to reduce risk and provide more stable returns over the long term. Finally, investing in stocks can help to build wealth and achieve financial goals, such as saving for retirement or buying a home. Overall, investing in stocks can be a good way to grow and protect your money over the long term.

Here are seven famous stock investors in the world:

  1. Warren Buffett: Warren Buffett is an American investor and the CEO of Berkshire Hathaway. He is considered one of the most successful investors in history, and is known for his value investing approach, which involves buying undervalued stocks with the potential for long-term growth.
  2. Peter Lynch: Peter Lynch is an American investor and the former manager of the Magellan Fund at Fidelity Investments. He is known for his ability to identify and invest in undervalued growth stocks, and for his “buy what you know” approach to investing.
  3. Benjamin Graham: Benjamin Graham was an American investor and author who is considered the father of value investing. He is known for his philosophy of buying stocks that are trading at a discount to their intrinsic value, and for his successful investment partnership with Warren Buffett.
  4. John Templeton: John Templeton was an American-born British investor and philanthropist. He is known for his global investment approach and his focus on buying undervalued stocks in emerging markets.
  5. George Soros: George Soros is a Hungarian-American investor and philanthropist. He is known for his successful bet against the British pound in 1992, which earned him over $1 billion, and for his philanthropic efforts through the Open Society Foundations.
  6. David Einhorn: David Einhorn is an American investor and the founder of the hedge fund Greenlight Capital. He is known for his ability to identify and short sell overvalued stocks, and for his successful investments in undervalued companies.
  7. Carl Icahn: Carl Icahn is an American investor and the founder of Icahn Enterprises. He is known for his activist investing approach, in which he buys large stakes in companies and then pushes for changes to increase their value.

How to get started if I have no experience at all?

If you are an absolute beginner and want to start investing in stocks, here are some steps you can follow:

  1. Educate yourself about the stock market and investing in general. It’s important to have a basic understanding of how the stock market works and the different types of investments available before you start investing. You can do this by reading books, taking online courses, or talking to financial advisors or experienced investors.
  2. Set investment goals and a budget. Before you start investing, it’s important to know what you want to achieve with your investments and how much money you are willing to invest. This will help you determine the right investments for you and ensure that you don’t overspend.
  3. Open a brokerage account. In order to buy and sell stocks, you will need to open a brokerage account with a reputable firm. There are many different brokers to choose from, so it’s important to compare their fees, services, and reputation before making a decision.
  4. Research and choose the right stocks. Once you have a brokerage account, you can start researching and choosing the right stocks to invest in. This will involve looking at a company’s financial statements, news, and market trends to determine its potential for growth and profitability.
  5. Start investing. Once you have chosen the right stocks, you can start investing by placing buy or sell orders through your brokerage account. It’s important to diversify your portfolio and not put all your money into one stock, in order to minimize risk and maximize potential returns.
  6. Monitor and review your investments. After you have made your investments, it’s important to monitor and review them regularly to ensure that they are performing as expected. This will involve keeping track of the stock price and market trends, as well as making any necessary adjustments to your portfolio.

By following these steps, you can start investing in stocks as a beginner and take control of your financial future.

Here are five online platforms for stock investment:

  1. eTrade: eTrade is a popular online brokerage that offers a range of investment products, including stocks, mutual funds, and ETFs. It also provides tools and resources for researching and choosing investments, and has a user-friendly platform for placing trades.
  2. TD Ameritrade: TD Ameritrade is another well-known online brokerage that offers a wide range of investment products and tools for researching and choosing investments. It also offers a variety of educational resources to help beginners learn about investing.
  3. Robinhood: Robinhood is an online brokerage that offers commission-free trading of stocks, ETFs, and options. It has a user-friendly mobile app and provides tools for tracking and analyzing investments.
  4. Charles Schwab: Charles Schwab is a full-service online brokerage that offers a wide range of investment products, including stocks, mutual funds, and ETFs. It also provides tools and resources for researching and choosing investments, and offers a variety of educational materials for beginners.
  5. Vanguard: Vanguard is an online brokerage that offers a range of low-cost investment products, including stocks, mutual funds, and ETFs. It also provides tools and resources for researching and choosing investments, and has a user-friendly platform for placing trades.

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