From 2007 to 2013, angel investor Mark Lyttleton served as the lead manager of some of Blackrock’s UK Equity Retail funds. In this role, he was responsible for investments totalling circa $7 billion. This article explores the basics of stock market trading, sharing pointers for beginner investors.

Ownership of public companies is divided into shares, which are also known as company stock. Stock investors hope that the company they invest in performs well and expands, causing the value of their shares to increase, providing a healthy profit when the investor decides to sell.

Experienced investors typically build and maintain a diversified investment portfolio, sticking with their investment even during market fluctuations. The embedded PDF explores the issue of investment diversification in more detail.

One way for beginners to learn more about investing in stocks is to open an online investment account, investing funds in shares of stock or stock mutual funds. Alternatively, many brokerage accounts enable members to start investing for the price of a single share, with some also offering paper trading, i.e. a simulator that enables users to experiment with buying and selling virtual stock without risking real money. The attached infographic contains more information about stock market simulators.

In terms of investing in stocks, there is no single recipe for success. However, there are some basic considerations for beginner investors to weigh up.

Investors need to decide how hands on they want to be in terms of investment decisions, i.e. do they wish to select stocks or stock mutual funds themselves, or pay an expert to manage the process for them. One way to get involved in the world of investing in stocks is through retirement savings products, with some offering a limited selection of stock mutual funds.

The investor then needs to choose an investment account. For hands-on types, this typically means a brokerage account, while those who require more support may find the robo-advisor route a more sensible option. The beginner investor then needs to consider whether they wish to invest in stocks or funds, setting themselves a budget. With investing in the stock market, the key to building wealth is adopting a long-term approach, avoiding knee-jerk reactions at moments of market fluctuation.

When starting out, it is possible to invest in stocks with a relatively small amount of capital. It is important for beginner investors to carefully weigh up their risk tolerance and investment goals, as well as the costs associated with investing in stocks or mutual funds. The embedded video explores mutual funds in more detail, explaining how they work.