Investing In Shares

The book I read to research this post was Investing In Shares For Dummies by Paul Mladjenovic which is a very good book which I bought from kindle. This book is a UK version so a lot of it is done from a British perspective. Most people who buy shares keep them for quite a while which is the best way to get the most money out of it. Buying shares and selling them later in the day is regarded as speculating in the book and is quite risky. You should try and get a company report for any company you are considering investing in. If you invest in companies that make a loss in the hope they turn a profit in the following year, that's also speculating and is very risky. Investing is about finding a successful company and investing in it to benefit from continuing profits. Warren Buffet the famous and very successful investor would only invest in the types of companies he understand. He avoided Information Technology companies as a result and didn't lose lots of money in the dot com crash. You should always make sure you have plenty of liquid assets which you can cash in a hurry if needed. Things like shares are illiquid because you have to wait for your money & if cashed in an emergency you will probably lose money.