Stock Market For Beginners (2021)

If there’s one thing 2020 has taught me, it’s that you should always have your eye on the stock market. While the pandemic has affected the global economy by a huge percentage, the stock market has seen an unbelievable rise, which has made the market more volatile than ever. Now, this has created some uncertainty for first time investors as they enter the stock market. Which is why in this video we’re giving you a round up of all you need to know as a beginner in the stock market in 2021.

If you don’t know anything about the stock market, chances are you probably don’t want to invest in it. But what most people don’t understand is that investing in stocks is one of the greatest ways for you to generate a passive income to set yourself on the right track financially. But of course, to invest in stock, you actually need to know how the market works. And I understand that the stock market can be a little intimidating, which is why people never really venture into it. But the truth is, all you need to do is figure out the right strategies and you’re good to go.

Let’s start with the basics. The Stock Market is made up of exchanges like the New York Stock Exchange or Nasdaq. Stocks are listed on a specific exchange, which brings buyers and sellers together and acts as a market for the shares of those stocks. Now, when any company decides to go public, they become available to purchase on the stock exchange. While an initial price is determined by the company itself and specially by the initial interest of investors, the price of stocks can go up or down based on supply and demand. When the demand for a stock goes up, its price goes up. Obviously, the demand for a stock can increase if the company is doing well enough to attract new investors.

So, now that you know what it means to invest in the stock market, let’s talk about how to invest. Before you even think of investing in the market, understand that this is not something that should be taken lightly. Choosing the right companies to invest in is going to define your career as an investor in the longer run. While many people new to investing in stocks focus on individual companies, understanding general stock market trends is critical. So before considering which stocks to buy, first make sure you understand the current stock market environment. This is why understanding stock market indexes is the key to investing productively. In simple words, a market index tracks the performance of a group of stocks, which either represents the…