The Trendshare How to Invest in Stocks Guide

How to Invest Money in the Stock Market

You don't need a degree in finance to learn how to invest your money. You need plain, clear explanations of the most important—and practical—concepts.

Even though finance and investing sometimes seems like maze of jargon and conflicting advice (ETFs! REITs! Index funds! Penny stocks! Inflation! Taxes!), you can learn how to invest money and build real wealth in the stock market on your own.

This is our How to Invest guide; a series of articles written in plain English for the average investor. You can start from the ground up and learn only what you need to know from creating an online brokerage account to making your first trade to picking great stocks you can hold for years.

You can also search our entire library of articles:

How to Invest Articles

How to Invest in Dogecoin

Cryptocurrency is a flashy investment, but is it worthwhile? Everything you need to know to invest in Dogecoin (without risking a fortune).

What is Yield?

What is yield? How measuring future income from an investment works--and why it matters.

What is a Stockbroker?

What is a stockbroker? Requirements and duties of brokers and how they help manage your investments.

What is a Stock Bubble?

What is a stock bubble? Why stock prices may be higher than average and why you might want to wait to buy.

What is Earnings Season?

Earnings season comes to the stock market four times a year. Everything you wanted to know about earnings season but were afraid to ask.

What is Active Investing?

An active investing strategy pursues frequent buying and selling. Why investing in stocks and funds on your own may help you build wealth in the market.

What is Fundamental Analysis?

What is fundamental analysis? How understanding the underlying business helps you find great stocks of successful companies.

What is the Quick Ratio?

What is the Quick Ratio? Why this simple financial measurement can tell you whether you should skip buying a stock--and what it can't tell you.

What is Dividend Yield?

What is dividend yield? Understand the dividend-price ratio and quarterly payout of a stock to make better investments.

Should You Sell Stocks in December?

Should you sell stocks in December? Why end of year portfolio rebalancing may not make sense--especially with capital gains taxes and the January Effect.

What Makes a Risky Investment Risky?

What makes a risky investment risky? Why make an investment if you know it has risk? Why high risk stocks may or may not make sense for your portfolio.

What is a Safe Investment?

What is a safe investment? What makes an investment safe? How do you choose a level of safety for your portfolio?

How to Double Your Money

How to double your money; investing in stocks can build you wealth, if you find a good rate of return. The math is simple.

When to Sell a Good Stock

When should a value investor sell a good stock? What to do when a stock doubles in value; how to profit from great investments in a buy and hold portfolio.

What Makes Good Stocks Good?

What makes good stocks good? What great stocks are worth buying? They represent strong companies which know how to make money.

When Should You Open a Roth IRA?

When should you open a Roth IRA? What this post-tax investment does, why it matters, and why you should invest in your Roth IRA (or shouldn't).

What is Dollar Cost Averaging?

What is dollar cost averaging in stocks? How to buy low and sell high regularly, and when cost averaging investing does and doesn't work.

What is a Small Cap Stock?

What is a small cap stock? Should you invest in small companies? Why these businesses may offer great opportunities for individual investors.

What is a Tenbagger Stock?

What is a tenbagger stock? How to find a stock which will double, quadruple, or multiply your gains ten times, thanks to super investor Peter Lynch.

What is the Current Ratio?

What is the current ratio of a stock? What measuring short-term obligations means and why liquidity metrics matter to investors.

What is Free Cash Flow?

What is free cash flow? How to measure a company's financial health by measuring profit, revenue, and actual money in the bank.

What is Online Stock Trading?

What is online stock trading? If you can do the research to pick stocks yourself--and you can--online trading may save you money and help you build wealth.

What is the P/E Ratio?

What is the P/E ratio? How to measure the value of a stock with the stock price to earnings ratio.

What is the Stock Market?

What is the stock market? An explanation of investing for novices and newcomers to the world of trading public stocks.

What is a Hedge Fund?

What is a hedge fund? What their managers do--and why the wealthy love and hate hedge fund investments.

Buy the S&P Index Fund

Serious investors know the value of an index fund. How to invest in the S&P 500 index fund, through Vanguard or otherwise.

What is the Share Price of a Company?

What is the share price of a company? Whatever you pay for a single piece of stock or its debt. Sometimes that price is wrong; you can make money from that!

Understanding Investment Risk

Stock investing has risks; how to understand, plan for, and manage risk to protect yourself and build wealth--and the hidden risk all investors must know.

What is an Index Fund?

What is an index fund? Why the simplest way to get good returns from the stock market is the best investment to start with!

What is a Stock Dividend?

What is a stock dividend? Learn how a dividend paid out in fractional shares is different from the cash dividend you're used to.

What is Investment?

What is investment? How does the stock market work? How to invest wisely, even if you have little money.

What Do Stock Market Symbols Mean?

What do stock symbols mean? They're shorthand ways to refer to shares of a company's stock. Some of them have interesting histories and meanings.

Stocks and the Fiscal Cliff

What happens to stocks if we fall off the fiscal cliff? What might happen in the market if the US defaults on its debt.

Investing Book Reviews

Investing books reviewed and recommended. Value investing explained; learn how to invest in the stock market with these great guides!

Learn the Stock Market

How does the stock market work? Learn how here, including and how to find great investments. Investing Basics 101.

The Best Stocks to Buy Now

The best stocks to buy now aren't always flashy or hot. What's the secret great investors use to find good stocks to invest in now?

How to Invest in Stocks

Take your first steps to investing in stocks by learning the tools of successful investors: how and what to invest, and how to build wealth in the market.

How to Pick Good Stocks

Learning how to pick good stocks is about patience and research. To find good stocks, do your homework—and use good tools.

Happily Ignoring IPOs

Should you buy stock in an IPO? Didn't get an invitation to a big tech IPO? You're probably better off ignoring it.

What is a Margin of Safety?

What is a margin of safety? An easy way to reduce the risk of value investing! How to use safety margin calculations.

What is Free Cash Flow Jitter?

Free cash flow is vital to value investing. Free cash flow jitter measures trends over time to demonstrate the stability of a company.

What is Present Value?

What is the present value of an investment? The right price to pay for a stock depends on how much you want to make. Understand and calculate present value!

What is Intrinsic Value?

What is the intrinsic value of a stock? Every share represents a represents a portion of the business's value. Use intrinsic value to calculate its worth.

What is Cash Yield?

What is cash yield? How to analyze stocks with free cash flow yield and more reliable earnings figures.

Earnings Matter Most

Only those companies that actually make money survive. Earnings are the most important financial measurement of an investment!

What is Value Investing?

What is value investing? How looking for good companies with discounted stock prices can help you build wealth in the stock market.

The Buy and Hold Philosophy

The buy and hold long term stock investing strategy is simple and effective. Why avoiding frequent transactions can save you real money.