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Published:
May 19, 2020

Stock Investing For Dummies

Overview

Get started with stock investing and achieve your personal finance goals

The bestselling Stock Investing For Dummies is full of practical and realistic stock market guidance. Today's market is full of surprises, and this book will help you understand all aspects of the investing process, so you can thrive as an investor, come what may. With straightforward direction from a renowned best-selling author and national financial authority , this book discusses the many different ways you can invest in stocks, so you can create a portfolio that works for you. You'll also find updates on the latest trends and growth opportunities, plus insights into what it means to invest wisely in the current financial environment. Be confident in your investment decisions, thanks to this sound Dummies advice.

  • Build a strategic stock portfolio that meets your needs
  • Discover the basics of investing, including how to invest in difficult markets
  • Learn how to invest in AI and how to make the most of AI investing tools
  • Explore ETFs, preferred stocks, options, factor investing, stock warrants , and beyond

This is a great Dummies guide for new investors looking for a comprehensive guide on the current stock market, as well as those looking to brush up their stock investing skills.

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About The Author

Paul Mladjenovic is a national speaker and educator with decades of experience in writing and teaching about common stocks and related investing topics. He owns Prosperity Network and www.RavingCapitalist.com and is the author of AI Investing For Dummies, Investing in Gold & Silver For Dummies, Currency Trading For Dummies, and High-Level Investing For Dummies.

Sample Chapters

stock investing for dummies

CHEAT SHEET

You're investing in stocks — good for you! To make the most of your money and your choices, educate yourself on how to make stock investments confidently and intelligently, familiarize yourself with the online resources available to help you evaluate stocks, and find ways to protect the money you earn. Also, be sure to do your homework before you invest in any company's stock.

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Articles from
the book

Stock investing doesn’t happen in a vacuum. The stock market can face major events that can either help or hurt it — and of course affect your stock portfolio. Some events can have a direct impact (such as a pandemic), while others just provide a glancing blow. But most macro-events have a material effect on stocks.
Bear markets are brutal when they hit. Ask any stock investor who was fully invested in stocks during 1973–1975, 2000–2002, or 2008. You relieve the pain from the carnage by vigorously pulling your lower lip up and over your forehead to shield your eyes from the ugliness. Fortunately, bear markets tend to be much shorter than bull markets, and if you’re properly diversified, you can get through without much damage.
In addition to stock screeners, there are screeners for bonds, mutual funds, and now exchange-traded funds (ETFs). The figure shows a typical ETF screener like many online. Courtesy of ETFdb.comA typical ETF screening tool.You won’t find minimum and maximum with ETF screeners as much as with stock screeners. There are more varied categories to filter through and different performance criteria.
Identifying trends is a crucial part of technical analysis. A trend is just the overall direction of a stock (or another security or a commodity); you can see trends in technical charts. Which way is the price headed? This article describes different types of trends, talks about trend length, and discusses trendlines and channel lines.
You're investing in stocks — good for you! To make the most of your money and your choices, educate yourself on how to make stock investments confidently and intelligently, familiarize yourself with the online resources available to help you evaluate stocks, and find ways to protect the money you earn. Also, be sure to do your homework before you invest in any company's stock.
A stop-loss order (also called a stop order) is a condition-related order that instructs the broker to sell a particular stock in your investment portfolio only when the stock reaches a particular price. It acts like a trigger, and the stop order converts to a market order to sell the stock immediately. The stop-loss order isn’t designed to take advantage of small, short-term moves in the stock’s price.
The following discussion tells you what you need to know about the tax implications you face when you start investing in stocks. It’s good to know in advance the basics on ordinary income, capital gains, and capital losses because they may affect your investing strategy and your long-term wealth-building plans.
Most stock screening tools have some basic elements that are very useful in helping you narrow your search for the right stocks in your portfolio. The figure shows a typical stock screener from Yahoo! Finance; the following discussion walks you through the major fields of this tool. Source: Yahoo! FinanceA typical stock screening tool.
When you buy a put option, you’re hoping that the price of the underlying stock falls. You make money with puts when the price of the option rises, or when you exercise the option to buy the stock at a price that’s below the strike price and then sell the stock in the open market, pocketing the difference.By buying a put option, you limit your risk of a loss to the premium that you paid for the put.
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Frequently Asked Questions

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