How to get rich with this simple UK stock market guide
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Before investing in anything, and not just the stock market, you should know the basic rules and what you are up against. In this case, you should know that in the UK, there is the main stock market that is called the London Stock Exchange. That is the place where a lot of companies and financial instruments, the derivatives and government bonds have their stocks that can be bought and sold to earn a profit.
First of all, you should know that the stock market is actually splint into different indices, and the most well-known indices actually come from a Footsie group. Unlike cash, when you 'gamble' on the stock market, you need to know the risks. The stock market has its ups and downs, and before deciding to invest in anything, make sure to know the risks.
There are two ways in which you are able to access the stock market, and those ways are known as direct and indirect. The direct way is a misnomer, as you are investing in the market from a 3rd-party broker. The direct investment also means that you are buying shares in a particular company, meaning you are becoming a shareholder. There are also many broker services available, and one of the most used ones is the online platform from which a client can sell and buy shares independently.
The online stock market is actually great for beginners, as you will be able to get involved and dabble with some individual shares. When you open an online, execution-only share dealing account, you will be able to keep the cost of investments at a minimum. The only thing you need to keep in mind is that if you want to receive a big profit from the stock exchange, you need to make sure to read all the useful things you can find on the internet together with the information on the stocks you are eyeing.
On the other hand, you have the indirect approach through which you will be investing in a pool of investment funds. This is a very common way to access shares, as the number of companies you invest in spreads the risk. If you are a beginner, it is always good to use the collective investment funds to access the stock market. This way, you will be able to use that collective buying power and reduce the changes inflicted on your small starting portfolio.
In addition, rather than having to make all kinds of risk decisions alone, with the indirect approach you will get access to a pro-fund manager where you can buy and sell individual stocks. On top of everything else, you need to be aware of several important things, which can make you go bankrupt in a second. As long as you are well-read and you know the companies in which you are investing together with the risks, you are on a good path to success.