Keep Your Losses Manageable

• 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.
• ...

• 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 Jone...

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 ...

• 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. Anyo...

• 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 sh...

• 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...

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...

• 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 spe...

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. 

• 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." 

• 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 Ha...