If you are planning to invest in stocks, you need to have prior knowledge about the different kinds of risk that are involved in the stock market. One of the first things that you need to know about the stock market is that it can be extremely volatile. So, putting a lot of money in cash when it comes to stocks is certainly not the best thing that you would need to do, particularly not when you happen to be doing it for the first time.
If you have a sound financial backing, than spending a lot of money on anything is possible. However, supposedly you spend $ 10,000, and end up losing all pursuing a particular stock, then it becomes frustrating as well as immensely devastating to you at the very beginning. So, try your hand at a virtual account first, go through the stocks, and invest your virtual money into your stocks. This will help you realize about the algorithm that you can make for yourself when it comes to investing, the type of stop loss that you are looking at, as well as the kind of predictions that you have made, and the success rate associated with it.
One of the biggest questions when it comes to recovery of money from the stock market is whether you need to invest a lot more in order to recover the money that you have lost. Well, that is foolish talk. What is to say that you do not end up losing that money also? So, always try and recover your money in spurts and in small amounts at a time. This makes it even better, and you will be able to level out within a short period of time if your predictions go according to plan.