Category Archives : Stock Market Guide

So You have decided to buy shares. Yet you have all these unanswered questions … like what is a share? Where do I buy shares from? Which companies can I invest in? Which companies should I invest in?… well you have come to the right place. In these series of articles, I will attempt to breakdown how to invest in the stock market in an easy to understand manner.


Lesson 8 – What Determines The Rate Of Return On A Stock?

“In the Short-Run, the Market Is a Voting Machine, But in the Long-Run, the Market Is a Weighing Machine”   This is a phrase originally attributed to Ben Graham but made famous by Warren Buffet. It has a deep and profound meaning for those who actually understand it.   So what does it mean?   It simply means that in the short term, the stock market behaves like a popularity contest. Stock prices change rapidly based on the environment, while the underlying value of the business doesn’t change. People could chase fads and there could be various ways a stock might be manipulated in the short term. In the short term, a stock could move for any number of reasons – […]


Lesson 7 – A Stock Price Is Nothing But A Number

A stock price is nothing but a number. It tells you nothing on its own. So why then does the media concentrate on stock prices so much? It is because they want to sell you something and keep your eyes glued to the screen. But a stock price is nothing but a number.   This lesson aims to dispel the many myths surrounding stock prices. This might seem like a very basic post to someone who has been in the investing game for a while but it is amazing how many questions I get on this topic each week. So I am putting it all in one quick post for […]


Lesson 6 – How To Buy Stocks And Shares : A Step By Step Guide

Many people want to start saving for their future by investing in stocks and shares but do not know where to start. I remember when I first wanted to buy a stock in a company, I was completely lost as to where to begin. There are so many posts out there on the internet but there is no real step by step guide for buying shares in your favourite companies. Hopefully this post will help beginner investors by showing them exactly what to do to buy there very first stock.   Buying shares on the stock market is not as daunting as it used to be. Today, everything is online […]


Lesson 5 – What Is The Best Online Stock Broker Share Dealing platform

To be able to invest in the stock market, a person needs to open an account via a stock broker or online share dealing platform. You will then be able to trade stocks and shares via this broker or online platform.   Opening a stock dealing account is easy – just look at Lesson 4 for details of how to do this.   This lesson will look at the different stock brokers / online share dealing platforms available to investors in the UK.   At first glance, choosing the right stock broker / online share dealing platform can seem like a daunting task. However, it can be broken down into a […]


Lesson 4: How To Open A Stocks And Shares Account

Many people want to start saving for their future by investing in stocks and shares but do not know where to start. I remember when I first wanted to buy a stock in a company, I was completely lost as to where to begin. There are so many posts out there on the internet but there is no real step by step guide for buying shares in your favourite companies. Hopefully this post will help beginner investors by showing them exactly what to do to buy there very first stock. Firstly, let me point out that you can buy shares as an individual in a company in a trust   […]


Lesson 3: What is the Stock Market and How Does It Work

In the last lesson, we learnt what a stock is – it is simply a an ownership claim to proportion of a business. In this lesson, I will attempt to explain what the stock market is and how it works.   Contrary to popular belief, it is not a casino as what most people like to think. Instead, it is the biggest auction house in the world.   The stock market is where investors buy and sell shares in public companies.   It matches sellers of stock to buyers of stock so that transactions between the two parties can take place. In a sense, it acts as a giant auction house where […]


Lesson 2: What Is A Share

To many people, stocks are merely ticker symbols that go up seemingly at random. But for those of us that know how the stock market actually works, stocks do not move at random, but instead follow the trajectory of a real life business. To understand this, one needs to understand what a share is. A share of stock is just an ownership stake in a business.    It is really that simple.   Shares are claims to partial ownership of an underlying business. Buying shares entails you becoming part owner of a business. They are claims to the profits of actual real world businesses. Having this paradigm shift will allow […]


Lesson 1: Why Invest In Shares

Talk to a friend, family member or work colleague about investing in the stock market and they would think you are crazy. The majority of people still have the belief that the stock market is extremely risky. They have this view that stocks are ticker symbols which go up and down on a whim. There is this notion that stock picking is akin to gambling.   But for those that understand how the stock market works, it is far different to the situation mentioned above. In this series of articles, I will aim to give a breakdown of the stock market in an easy to understand manner.   The first […]