How to Make Money in the Stock Market: Investing for Beginners

Table of Contents

Chapter 1 – Best Investments for Beginners

Chapter 2 – Creating an Investment Plan

Chapter 3 – Finding the Right Brokerage Company

Chapter 4 – How to Avoid Problems with Your Investments

Chapter 5 – 13 Mistakes Beginners Make

Chapter 6 – Myths and Facts about Investing

Chapter 7 - 8 Tips from Investment Professionals

Chapter 8 – Tools to Help with Your Investment Decisions

Chapter 9 – Understanding Financial Statements

Chapter 10 – What You Need to Know about Investment Portfolios

Chapter 11 – Do It Yourself Investing for Passive Investing & Income

Chapter 12 – The Beginners Steps Towards Investing 

Chapter 1:  Best Investments for Beginners

Investing is not a get-rich-quick scheme. It takes understanding and knowledge about the risks and rewards before getting started. It’s important to read everything you can about investing before you begin so that you are prepared for potential pitfalls. It is clear, however, that investing is a good way to secure your future. Regardless of the rise and fall of stock markets over time, the average return on investment is still hovering around 11 percent over 20 years. That’s not bad. 

To get started investing, there are a few investments that are better for beginners. But before you get started, be sure that you understand the risk of any one investment and read all the fine print. Plus, before investing one dime in anything, you should invest in yourself by having at least 8 to 12 months living expenses saved that you are able get to easily. When you feel that you are secure with your savings, you’re ready to start investing.  This is a very good rule of thumb to use if you are working for a company that offers retirement (401(k), IRA’s, Employee Stock programs, Profit Sharing) but if you are do not have those options, you can safely build your future wealth while also growing your 8 to 12 months of savings.

There are four basic types of investments: stocks, bonds, mutual funds and so-called alternative investments which consist of real estate, options, and other things beginners don’t need to concern themselves with at this point. Instead, focus on the three basic investment options:

* Stocks – When you buy stocks, you’re buying equity in a business and in fact you become part owner of the business in which you buy stocks. They are very