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What stock market investment beginners should know about?

Investing in stock market and trading is not just like any other simple tasks as it is one of the volatile options. Anything might happen to your funds if invested in a wrong stock. As a beginner it is important to know about the basics of all these before making any choice. You can checkout if you want to make your trading on stocks easier to handle.

If you are new to this field, then it is good to know about some of the things about stock market. Read below to learn about the following. They are as follows,

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  • Several stocks will be listed on entities called as exchanges like Nasdaq and many others which will be available for the buyers and sellers. One cannot directly buy these stocks but is possible only through the brokers or agents who will do the job for you with the money you have deposited them with. It can be a real person whom you could interact with or a virtual agent through several applications.
  • People say that the Market is either up or down based on the market index which is the sum of all the stocks profit or loss for the day. Many experienced and professional investors always advise the beginners to invest in more different number of stocks rather than just putting all the money into a single stock. This is because even if one fails to give profit, there are possibilities for others to gain and you could tally the loss in some other.
  • Bear market and bull Market are common terms used to denote whether the market is favourable for the buyers or not. Bear market means that the market is crashing like hell and the holders are in loss with their stocks. Bull market is completely opposite to bear market which is in uptrend and giving a lot of profits in ten to hundred times and so on. The stock markets will experience either crash or correction based on the number of percentage fall it has from its price on a single day. If it’s 10 percentage or below, then it is a correction, and if it’s above 20 percent then it is a crash. Both will take few days or even months to be back to normal range. Think about all these in the mind before investing in to buy stocks.