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Although this guide will help you understand how the stock market works and how to find stocks of value to you, caution must be taken throughout the investment process. Every investment has the potential to lose value. Know the dangers before you start investing in any stock or option.
Carefully consider your financial plans before you start investing and the potential losses that you might incur before you place a trade. Only use what you can afford to lose on your stock investments. Keep a check on your total investing budget and spending so you know when to keep moving and when you have to get out.
Although this guide includes many details on how to analyze stock and option values, there are no guarantees that any stock might act in certain ways based on your analysis. There are far too many variables that influence stock values. It is also hard to predict future events.
Review the points in this guide carefully, but also use your own judgment when trading. Decide on an appropriate strategy for your investments so that you have a clear idea of what you wish to do when investing in a stock.
