MAKE MONEY TRADING STOCKS

Stocks are an easy way to make passive income. A stock in investing terminology refers to one share of the ownership of a business corporation. If you own one or more shares of a stock, then you are entitled to your share of the company's profits, whenever the company makes a profit.Also, if the company loses money, the value of your share of the company decreases.

If you have money to invest,buy one or more shares of stock, and sit back and let the market carry on with its trade. With time, your stock may appreciate or depreciate in value. At the time of your choosing, you may sell one or more shares of your stock at whatever the price of the stock is at the time that you sell it.

It is very easy to make money with stocks as well as to lose money with it. That's why it is always said that if you don't know what you're doing, then investing in stocks can be no different than gambling.

It is important and adviceable to do your research before you invest in a particular stock, to determine whether that stock is a good buy or not. Does that stock represent a company that is thriving and is likely to make you a profit? Or does it represent a volatile company that could lose money?

There are some factors you need to know before trading stocks:
1.You need to have a brokeage account
2.Use a registered stockbroker
3Look for undervalued companies.
4.Request for detailed explanation, with an eye to growth prospects and historical performance of any companies to invest in.
5.Study quarterly and annual reports as well as registration statements, looking for trends and opportunities.
6.Seek referrals from satisfied or dissatisfied clients of any stockbrokers you want to deal with.
7.Look out for the commission rate and quality.
8.Look out for the terms and agreement between the brokers and clients.
9.Accessibilty of the stock broking firms.
10.Check out the portfolios of successful mutual-fund companies. If they are getting great returns year after year, they are holding stocks you might want to buy.etc

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