Individuals all over the world realize that they could invest their money in the stock market, but only a few know what they are getting themselves into. They throw their money at the market with high expectations, and instead receive only frustration. If you are interested in making smart investments, you need to review this article to become knowledgeable about the basics.Investing in stocks requires you stick to one easy principle: keep it simple! Your philosophy of investing should be easy to understand. The stocks you pick should be things you understand. Do not take on undue risk, much like you avoid blowing your whole paycheck on lottery tickets. Keep things simple.Keep an interest bearing savings account stocked with at least a six month reserve so that you are prepared if a rainy day should come about. With this safety net in place, you can meet mortgage expenses and pay other bills until the matters are improved.A good goal for your stocks to achieve is a minimum of a 10 percent return on an annual basis, because any lower, you might as well just invest in an index fund for the same results. In order to predict potential return from a given stock, locate its projected growth rate for earnings, take its dividend yield, and combine the two figures. Stocks yielding 4% and which have a 10% earnings growth rate may produce a return of 14%.Resist the urge to time the markets. A more solid strategy, historically, is a steady investment of a set amount of money over the long term. Determine the specific percentage of your money that you are able to invest. Make sure you continue to invest on a regular basis.Start with a cash account instead of a marginal account. Cash accounts carry less risk because you control the amount you can potentially lose. In addition, they are generally a better way to get acclimated to how the market works before you go all in with a higher-risk marginal account.What you just read has provided you with knowledge aimed to help fuel your success in the stock market. With this knowledge in hand, you are in a position to start considering which investments are right for you and to, hopefully, see your profits add up. Just bare in mind that risk is a natural part of investing, and you will not see gains unless you take risks. Apply these tips, learn from your mistakes, and work toward minimizing risks as you continue to see profits. This is the advice of professionals, and it often leads to success. http://sports-media-society.com/what...-stock-market/ | growth rate, marginal account, stock market