A Beginner's Guide to the Stock Market - Deepstash
A Beginner's Guide to the Stock Market

A Beginner's Guide to the Stock Market

Matthew R Kratter

19

Keep reading for FREE

The World’s Greatest Opportunity Machine

The World’s Greatest Opportunity Machine

  • 75% of new traders quit within the first 3 months.
  • 90% of new traders quit within the first 6 months.
  • If you can stick around long enough and keep learning, you will be successful at this game.
  • Never forget that. Anyone can learn to play this game. 
  • Buy the strongest stocks that keep moving up. Add to your winners, get rid of your losers, and don't get too greedy. 

37

443 reads

What Is A Stock?

What Is A Stock?

  • A stock is a share of ownership in a company.

Ex: When I buy 100 shares of McDonald's, I become a partial owner of the company. I become a "shareholder."

  • Stocks move based on the laws of supply and demand. If a lot of people want to buy a stock, the share price will move up. Then if a very large investor comes in and starts to dump his stock, the price of the stock will move down. 

35

336 reads

How to Get Started with Stocks?

How to Get Started with Stocks?

Stocks are usually bought and sold on what are called "stock exchanges." A stock exchange is simply a place where buyers and sellers show up and exchange their shares for money, or their money for shares. 

  • The NYSE is best known for its blue chip (high- quality) stocks like Coca- Cola and McDonald's.(KO (Coca- Cola) or HD (Home Depot))
  • The Nasdaq is best known for its tech stocks like Netflix and Apple.(AAPL (Apple) or NFLX (Netflix))

36

281 reads


Investors Vs Traders

Investors Vs Traders

  • Some people like to buy stocks and hold them for many years. We call them "investors."
  • Other people like to buy and sell stocks more quickly, maybe holding them for only an hour, a day, a week, or a month. We call these people "traders." 

36

298 reads

Bid and Offer Price

Bid and Offer Price

  • As an individual, you cannot trade directly on a stock exchange. For that you will need a "broker" or "brokerage account." A broker is simply a middleman who gives people access to a stock exchange. 
  • Every stock has a bid price and an offer (or "ask") price.
  • The bid is the price at which someone is willing to buy the stock.
  • The offer is the price at which someone is willing to sell the stock. 
  • Memorize this phrase right now: “You sell to the bid, and you buy from the ask.”

39

258 reads

Index

Index

  • An index is simply a collection (or "basket") of stocks. Let's say that we take the 500 U.S. stocks with the largest market caps and toss them into a big basket. That basket is called the S& P 500. 
  • There's the Dow Jones Industrial Average (DJIA). This is a famous index that goes back to 1896. It always contains only 30 companies. 
  • Another well- known index is the Nasdaq 100, which contains mostly tech companies. 

35

228 reads

Creating Passive Income with Dividend Stocks

Creating Passive Income with Dividend Stocks

  • A dividend stock will usually make a cash payment into your brokerage account every 3 months. That cash payment is called a dividend. 
  • Investing in dividend stocks is one of the best ways to build wealth. The reason it works so well is that you can take the cash from a dividend payment and use it to buy more dividend stocks. Then those dividend stocks will pay you more dividends. 

37

230 reads

A Janitor - $ 8 Million

A Janitor - $ 8 Million

  • Ronald Read, a janitor lived a simple life and funneled much of his earnings into dividend stocks. When he died at the age of 92, he left behind an $ 8 million fortune, all in dividend stocks. 
  • You don't need to have a high salary to become a millionaire. You just need to spend less than you earn, and invest the rest in dividend stocks. 
  • Owning a basket of dividend stocks over a long period of time is one of the best ways to build wealth. 

36

214 reads

How to Pick Stocks like Warren Buffett

How to Pick Stocks like Warren Buffett

  • Just copy him. Go here and download his letter for the most recent year. Scroll down and you will see a list of every stock that Buffett owns.
  • An even easier route might be to just buy some B- shares of Berkshire Hathaway (BRK- B). You can then sit back and relax and let Warren Buffett, Charlie Munger, and their successors do all of the hard work. 

41

209 reads

Five Huge Mistakes That Beginners Make

Five Huge Mistakes That Beginners Make

  1. Don’t buy stocks that are hitting 52- week lows.(There is no such thing as a “safe stock.”)
  2. Don’t trade penny stocks.(A stock that trades under $ 5.) 
  3. Don’t short stocks.
  4. Don’t trade on margin.
  5. Don’t trade other people’s ideas. 

36

225 reads

Keep Your Losses Manageable

Keep Your Losses Manageable

  • Never buy a stock just because it is "cheap" or has a low P/ E. (Price-Earning Ratio)
  • The key to making a lot of money is not losing a lot of money in the process. 
  • Keep your losses small and manageable, especially while you are still in the learning phase. It’s OK to buy just 1 share of stock when you are testing out a new strategy 

36

197 reads

GEORGE SOROS

 "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." 

GEORGE SOROS

36

225 reads

Important Of Stocks For Companies

Important Of Stocks For Companies

A low or falling stock price will make it difficult for the company to attract top talent. In this way, stocks don't just reflect a company's current prospects, but also play a role in determining a company's future prospects. A company with a high or rising stock price can use that stock to buy out competitors and pay for top talent. That's what Facebook did with WhatsApp and Instagram. 

35

173 reads

Insider Secrets of the Stock Market

Insider Secrets of the Stock Market

  • If you are looking for a good long- term investment, buy a company that has the highest sales in its industry.
  • Once a business sells more than any other company in its industry, it becomes very difficult to compete with.
  • There's no substitute for being #1 in your industry.

Examples:

  • Home improvement- Home Depot;
  • Fast food- McDonald's;
  • Toothpaste- Colgate Palmolive;
  • Payments- Visa;
  • Smart phones- Apple; 
  • Social media- Facebook. 

38

205 reads

WARREN BUFFETT

"The single most important decision in evaluating a business is pricing power.

If you've got the power to raise prices without losing business to a competitor, you've got a very good business.

And if you have to have a prayer session before raising the price by 10 percent, then you've got a terrible business." 

WARREN BUFFETT

37

217 reads

CURATED BY

prince_rahul

“I am just a child who has never grown up. I still keep asking these 'HOW' and 'WHY' questions. Occasionally, I find an answer.” — Stephen Hawking

MORE LIKE THIS

A Beginner's Guide to the Stock Market

A Beginner's Guide to the Stock Market

Matthew R Kratter

A Beginner's Guide To Bitcoin

A Beginner's Guide To Bitcoin

Matthew R. Kratter

A Beginner's Guide to Stock Investing

A Beginner's Guide to Stock Investing

investopedia.com

Ready for the next level?

Read Like a Pro

stash-superman-illustration

Explore the World’s

Best Ideas

200,000+ ideas on pretty much any topic. Created by the smartest people around & well-organized so you can explore at will.

An Idea for Everything

Explore the biggest library of insights. And we've infused it with powerful filtering tools so you can easily find what you need.

Knowledge Library

Powerful Saving & Organizational Tools

Save ideas for later reading, for personalized stashes, or for remembering it later.

# Personal Growth

Take Your Ideas

Anywhere

Organize your ideas & listen on the go. And with Pro, there are no limits.

Listen on the go

Just press play and we take care of the words.

Never worry about spotty connections

No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.

Get Organized with Stashes

Ideas for your next work project? Quotes that inspire you? Put them in the right place so you never lose them.

Join

2 Million Stashers

4.8

Stars

5,740 Reviews

App Store

4.7

Stars

72,690 Reviews

Google Play

Sean Green

Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.

Ashley Anthony

This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!

Shankul Varada

Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.

samz905

Don’t look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.

Ghazala Begum

Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.

Laetitia Berton

I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!

Giovanna Scalzone

Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.

Jamyson Haug

Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving & library

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Personalized recommendations

FAQ

Claim Your Limited Offer

Get Deepstash Pro

BLACK FRIDAY

75% OFF | 1-Year Pro Subscription

Claim Offer