Share Tips and Investment Strategies

Investment advisor

Share tips and investment tips are available from all sorts of sources but which of them do we trust. Sometimes you will get investment tips and information about what shares to buy but you should be careful taking advice from others as everyone has an opinion, especially when they are not risking their own money. Your broker should be able to help you but even brokers get it wrong so trust your own instincts. Learn all you can about the market and Investing in shares before you part with any money.

Stock Market explained

The stock market is also known as the stock exchange, which is where all the action is. The stock exchange building is where people can buy or sell stocks and shares but stock exchange can also refer to the group of individuals who oversee share trading. People who save their money in the traditional way in banks and insurances companies (most of us) are indirectly trading shares. This is because the main institutions use our money to invest in securities and shares. You can buy and sell shares online yourself or you get employ a broker to deal on your behalf.

The Stock Market players described

3 types of player

Bears

A bear knows when the market is falling and will sell securities knowing that they can be bought again at a lower price. In theory the number of shares held by the bear does not change, just their $ value. Thus a bear market is one that is falling.

Bulls

If you buy a security which you wish to sell for a higher price later you would be described as bullish. A bull market is a market that rises or is on the rise.

Stag

A stag is on the look out for new issues and knows the best shares to buy in order to make a quick profit from nothing.

Dow Jones Investment tip

The Dow is also known as the Dow Jones Industrial Average (DJIA) or the Dow Jones. The Dow Jones is an indices founded by Charles Dow and Edward Jones and is most watched benchmark of stock market activity. The Dow Jones Industrial Average shows how 30 publicly owned companies (all based in the U.S.A.) have traded during a normal trading session on the stock market. Quite statistical in nature with factors taking account of shares splitting and using formulas and divisors to compute the scaled average with consistency. Others worthy of study are the NASDAQ and the S&P 500.

Stock market for beginners to study

One way to invest in equities via the DJIA is to invest in Exchange Trade Funds (EFT). These are widely accessible and almost all ETFs track an index. ETFs are attractive investments due to their low cost.

EFT study

The main thing is to conduct your own research before jumping at share tips, investment shares or suggestions from people with limited stock market know-how and stick to the tried and trusted DOW and NYSE experts.