The ABCs of Savvy Stock Investing

Using the Basic Language of Stock Trading To Build Financial Literacy!

Linda Turrell

• Publisher: Page Publishing, Inc.
• Year: 2020
• Print ISBN: 9781643509556
• eBook ISBN: 9781643509563
• Topic: Business
• Subtopic: Stocks
• Index: Business

Why read this book? This book walks you through the steps of making a savvy stock trade, assuming you know little or nothing of this skill. You will learn the basics of reading a stock snapshot, placing a trade, some basic language of stock trading, the types or strategies of making these trades, so you can build a foundation for future stock trading literacy. This book will work as a primer for my other book, Savvy Trading. I have collected questions from readers and have asked them WHAT wou

What Type of Money Do You Have?

You have heard about MONEY! YOU can EARN it! SAVE it! Spend it! INVEST it! It is wise to take some time to learn about how to invest it! Investing is different from earning and saving because it is about making YOUR money work for you! It is about making it GROW!

If you have money that you have earned and placed in a safe place, it will help you gain financial security. Investing will help you make more money from the money you already have saved. There are many ways to invest your dollars. Investing in stocks is one of them.

When you invest in a stock, you are buying a share of the company that has issued the stock. The board of directors decides what type of stock to issue. When the company does well financially, they may decide to reward the person who has bought a stock (the STOCKHOLDER) with a DIVIDEND. The dividend is then paid to the stockholder. There are several ways in which to do this which we will focus on later.

How do you buy stock? And where are stocks traded? How do you make a trade? Let’s start from the beginning!

EARNING

SAVING

INVESTING

EXAMPLE:

Let’s get these terms straight! Your friend tells you that he/she worked all day Saturday and made $60.00 and then saved $15.00 on sneakers on sale! Afterward, because of all that hard work, he/she earned the right to invest some of the money in a new jacket. Did your friend understand the difference among the words EARN, SAVE, and INVEST?

What do you think? What is the earned money in this example? What is the saved money? What money was invested?

EARNINGS MEAN THE MONEY YOU RECEIVE FROM WORKING AS IN WORKING AT A JOB.

SAVINGS MEAN THE MONEY YOU DO NOT SPEND BUT KEEP FROM YOUR EARNINGS.

INVESTING IS THE MONEY YOU PUT IN AN INVESTMENT SUCH AS A STOCK SO THAT IT GROWS!

Now let’s look at our example again.

Are there any earnings, savings, or investments here?

Your friend tells you that he/she worked all day Saturday and made $60.00 and then saved $15.00 on sneakers on sale! Afterward, because of all that hard work, he/she earned the right to invest some of the money in a new jacket. Did your friend understand the difference among the words EARN, SAVE, and INVEST?

• The money earned from working on Saturday, which is $60.00, is the EARNINGS.

• The $15.00 saved on the sale of sneakers was a good buy, but it is not a SAVINGS because it was not put away to be used.

• The money spent on the jacket may have been an excellent way of SPENDING your money, but it is not a monetary investment because this money is not growing to be used for the future!

You need to understand the difference among these terms so you can understand the ABCs of the stock market language! WHY? You need to have a plan so that you will be able to invest your money intelligently! You need to earn money, so you can save and then invest so that your money can grow!

II

Learning the Language of Stocks

What Is a Stock Snapshot?

There is a great deal of information “out there” about how to invest in the stock market. You could read a book a day and literally spend years STILL READING! Information can cover all sorts of aspects in investing such as the type of investments, the tools to make investments, and the strategies to make investments as in my first book. Books have been written on just ONE aspect of any given focus such as styles of investing or even how you should determine the type of investor you might be!

My thought is to help you feel comfortable in the investing world by giving you a part of the foundation for financial investing literacy. It is my goal to walk you through the language of a stock snapshot. With this knowledge, you will be more comfortable about learning other concepts in financial literacy.

FINANCIAL LITERACY IS THE KNOWLEDGE (SMARTS) THAT YOU HAVE ABOUT HANDLING YOUR MONEY! THERE ARE MANY KI...

Table of contents

• Chapter 1
• Chapter 2
• Chapter 3
• Chapter 4
• Chapter 5
• Chapter 6
• Chapter 7