The overriding key to stock investing basics is to keep it simple at the start. Learn how to start investing by understanding the difference between investing and using savings accounts to build a portfolio and how the markets work. Beginner stock market participants should avoid drowning in the exhaustive volume of technical information available.

There are three primary differences between savings and investing:

• Ownership: When you purchase stocks you are becoming an owner in the company in which you invest. This does not occur with a savings account.
• Potential for gain: A savings account typically pays a stated return on your dollars. Owning stock comes with a possibility of company growth, higher profits, and, of course, higher value (gain) versus the stock purchase price.
• Real risk potential: Savings accounts carry minimal risk. While your favorite bank is not likely to double your interest rate, even if it fails, your savings dollars are protected by federal insurance. Whether you are investing in penny stock or blue chips, you always have risk of partial or total loss of your money.

The other stock market basics include understanding that the NYSE, American Exchange, NASDAQ, and all other global markets work like your neighborhood flea market on a grand scale. People look at stock market investing odds and decide to buy if they think a stock price will increase and sell if they believe a market value will decrease. All of the varied technical data available only reinforces these beliefs.