Master some investment basics
If you're going to try your hand at stock market investing you should learn the basics first. Read this article from our sister site, fool.co.uk: My advice for first-time investors to point you in the right direction and help you be a more successful investor.
Make a point of learning these basics:
1.Check out Investing terms explained. This will tell you how to read a company's annual report and what you should be looking out for in particular. This will help you to decide whether the shares are worth buying.
2. Learn how to value shares. There's no prescribed way of doing this. It's worth learning a few different techniques to find the one you find the most effective. Take a look at this article which provides an introduction to price/earnings ratio, dividend yields and so on.
3. Don't be tempted to jump on the latest investment bandwagon. A company may be doing storming business, but if lots of investors know the good news already, the shares could be expensive and you could struggle to make a profit if you invest. Once you've learnt how to value a share, you should be able to spot trouble like this before you invest.
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