Stock Investing For Dummies, 4th Edition

Chapter 1

Surveying the World of Stock Investing

In This Chapter

Knowing the essentials

Getting ready to purchase stocks

Recognizing winners

For newbies to stock investing, the stock market hasn’t been offering the warmest welcome in recent years. I wrote much of this 4th Edition as the United States and the rest of the world were wondering who the next U.S. president would be and what country (Greece?) or state (California?) would head for the abyss. (Events such as these impact stock investing because our world and our financial markets are more interrelated than ever.) Too many folks are pining for the good ’ol days of 1982–1999, when choosing winning stocks was easier than finding aliens in Star Wars. Alas, today’s stock market is a little more puzzling . . . but it can still be rewarding. I can only promise you that if you read this book seriously, you’ll do much better than the average investor. Just keep in mind that patience and discipline count now more than ever.

The purpose of this book is not only to tell you about the basics of stock investing but also to let you in on solid strategies that can help you profit from the stock market. Before you invest, you need to understand ...