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#*Different analysis firms use different words to make their recommendations. Financial websites often provide guides that explain the terms used by each firm.<ref>https://ift.tt/32VjbQ3>
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#*Different analysis firms use different words to make their recommendations. Financial websites often provide guides that explain the terms used by each firm.<ref>https://ift.tt/32VjbQ3>
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#Determine your investing strategy. Once you've gathered your information, it's time to think about your investment strategy. Different investors have different approaches, and there are several factors to consider.[[Image:Buy Stocks (for Beginners) Step 8.jpg|center]]
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#Determine your investing strategy. Once you've gathered your information, it's time to think about your investment strategy. Different investors have different approaches, and there are several factors to consider.[[Image:Buy Stocks (for Beginners) Step 8.jpg|center]]
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#*Diversity of investments. Diversification is the degree to which you spread your dollars over different investments. Investing all your money in a small number of companies can lead to a big payoff if those companies perform well. But, this approach also exposes you to a lot more risk. The more diverse your investments, the lower the risk.<ref>https://ift.tt/37fMGj1>
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#*Diversity of investments. Diversification is the degree to which you spread your dollars over different investments. Investing all your money in a small number of companies can lead to a big payoff if those companies perform well. But, this approach also exposes you to a lot more risk. The more diverse your investments, the lower the risk.<ref>https://ift.tt/37fMGj1>
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#*Compounding. This is the result of consistent re-investment of any earnings you receive. If you reinvest your earnings, you will then generate more earnings on those original dividends.<ref>https://ift.tt/2r15tOe> Some companies have programs that allow you to do this automatically.<ref>https://ift.tt/2CTG3ES>
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#*Compounding. This is the result of consistent re-investment of any earnings you receive. If you reinvest your earnings, you will then generate more earnings on those original dividends.<ref>https://ift.tt/2r15tOe> Some companies have programs that allow you to do this automatically.<ref>https://ift.tt/2CTG3ES>
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#*Investing versus trading. Investing is a long-term strategy that aims at earning money based on long-term growth rates. Prices rise and fall, but hopefully rise in the long run. Trading is a more active process. It involves trying to pick stocks that will rise in price over the short term, and then quickly selling them.<ref>https://ift.tt/2NTiNNI> This "buy low, sell high" approach can result in big returns, but requires constant attention ad higher risk.
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#*Investing versus trading. Investing is a long-term strategy that aims at earning money based on long-term growth rates. Prices rise and fall, but hopefully rise in the long run. Trading is a more active process. It involves trying to pick stocks that will rise in price over the short term, and then quickly selling them.<ref>https://ift.tt/2NTiNNI> This "buy low, sell high" approach can result in big returns, but requires constant attention ad higher risk.
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