Whether you are new to the world of investing or not there are some terms that you should know. In this post I hope to enlighten you to the simple terms of investing as well as how they affect you. These are five terms that I believe you as a first time investor will come across the most.
1 Stop Loss
This is a very simple term, when you buy a stock you have a couple options one of those after purchase is a Stop loss. This means that you can set your desired price and if the stock drops below a certain amount the stock will automatically sell. Now one of the problems with Infrastructure Investing this is that if you sell a stock too quickly because for one hour it drops below a certain price and then very quickly raises again you have the potential to lose money.
2. Blue Chip Stocks
These are your stocks that offer a high return rate and are often very stable to invest into. Most of the time these are your large companies that have been around for a long time and show no signs of going anywhere anytime soon.
3. Day Trading
This is someone who will buy and sell stocks on the same day depending on how many they buy and the actually cost of the stock. Depending on which program you are using to being a “day trader” can actually cost you more money than you are making.
4. Order
This term is as straight forward as it seems actually. When you go to buy or sell a stock what you do is put in an order. This order then trickles to the computer and places your order. Depending on how fast the order is placed depends on the actually cost of the stock when its purchased.
5. Broker
This is the person that you pay when you want to invest but not do it yourself. Normally this person has been very well educated and has the capability to make you the most money, but this also comes at a cost. When a broker makes you money they take a percentage to fund their business.