Saudi Stock Market for Beginners 2025: A comprehensive step-by-step guide to investing

Thinking of entering the stock market? Start your wealth-building journey here

Are you worried about your financial future? Do you notice that the value of your hard-earned savings is slowly being eroded by rising prices and inflation? You may have heard a lot about "Stock Market" as a powerful tool for growing money, but you feel hesitant and intimidated, thinking it's a complex and risky world reserved for experts.

If these questions are on your mind, you're in exactly the right place. This guide isn't written for experts, it's written for you.

We completely understand how you feel, which is why we've created this comprehensive guide to take you by the hand and remove all ambiguity. By reading this article, you'll have a clear and simple roadmap that will enable you to:

• Understanding the fundamentals of the stock market And what it really means to be an investor, in simple, uncomplicated language.
• Knowing the practical steps To start investing in the Saudi market, from choosing the right financial broker to executing your first purchase.
• Gain smart strategies To manage risk and avoid common mistakes that most beginners make.

By the end of this guide, you'll not only have the theoretical knowledge, but also the confidence to take your first deliberate steps towards building your financial future and securing your wealth.

Why is now the best time to pay attention to the stock market?

Inflation is silently devouring your savings: How do you protect your money in the stock market?

The money you keep in your bank account may seem safe, but there is a hidden enemy that reduces its real value day by day: inflation. Simply put, inflation means the cost of living is rising, making the riyals you have today buy fewer goods and services in the future. For example, if the annual inflation rate is around 2%, 100 SAR will lose 2% of its purchasing power after one year. It is worth noting that this rate is constantly changing and can be tracked via official data released by the General Authority for Statistics. Over time, this effect can be quite significant, eroding your hard-earned wealth. This is where the stock market comes in as a powerful tool to not only preserve the value of your money, but to grow it at a rate that outpaces inflation. By investing in stocks of successful companies, you're not only putting your money into an asset that can grow, but you become a partner in the real economy. When these companies are profitable and expanding, the value of their shares rises, allowing your wealth to grow and overcome the silent effect of inflation. Leaving your money idle is actually a risky decision in today's economic world.

For beginners only: Your guide to starting your wealth-building journey in the stock market

There is a misconception that the stock market is only for the wealthy and financial experts. That notion is a thing of the past. Thanks to modern technology and regulatory developments, investing in stocks is more accessible than ever, available to everyone regardless of the size of their capital. You no longer need huge sums of money to get started; today you can buy a single share in a major company for a small amount. Online trading platforms and smartphone apps allow you to open an investment account and buy and sell with just a few clicks. Even more important is understanding the power of the "compounding effect," which Albert Einstein is often credited with describing as "the eighth wonder of the world." When you invest, your profits can add up over time. The earlier you start, even with small amounts, the longer you give your money time to grow exponentially. This guide is tailor-made for you, the novice investor, to take you by the hand and demystify the stock market, proving that building wealth is not a distant dream, but a journey that starts with the right first step.

Your roadmap to the world of stocks: From deep understanding to your first successful trade

The world of stocks can seem complicated and full of jargon at first, and that's okay. But don't worry, this comprehensive guide is a clear, step-by-step roadmap that will guide you through every step of your investment journey. We'll start with the basics, explaining What is an arrow and what it means to be a part owner of a company. Then we'll move on to understanding the mechanism by which it works Saudi Stock Exchange (Tadawul) and how stock prices are determined daily. We'll then dive into the fundamental differences between being investor is focused on long-term growth, and being Speculator looking for a quick buck, to help you define your investment identity. Because theoretical knowledge alone is not enough, we will provide you with a practical, hands-on guide that shows you step-by-step how to open your investment portfolio, choose the right financial intermediary, and make your first stock purchase. Finally, we'll provide you with basic strategies to manage risk and avoid common mistakes beginners make. By the end of this article, you will not only have the knowledge, but also the confidence to make informed investment decisions and start your journey towards achieving your financial goals.

Deciphering the stock market: 4 key concepts that are indispensable

What is a stock? Own a piece of the companies you love and use every day

When you hear the word "stock," you might imagine complex charts and changing numbers. But the concept is much simpler and more exciting than that. A stock is simply an ownership stake in a company. When you buy a single share of Almarai, for example, you're not just buying a security, you're becoming the owner of a very small part of that company. This means you have the right to participate in its future success. Think about the companies that are part of your daily life: Your bank like Al Rajhi, the telecom company you use like STC, or even the Aramco gas station that fuels your car. By buying shares of these companies, you are transforming yourself from a consumer of their products and services to a partner in their profits and growth. If a company performs well and increases its profits, its share price is likely to rise, thus increasing the value of your investment. In addition, many companies distribute a portion of their profits to shareholders, known as "Dividends"providing you with an additional source of income.

What is a stock exchange? Learn about the official playground for stock trading

If the stock represents a share in a company, the Stock exchange (or stock market) It is the organized and official place where these stocks are bought and sold. Think of it as a large supermarket, but instead of selling fruits and vegetables, ownership stakes in major companies are traded. In Saudi Arabia, the official stock exchange is "Saudi Exchange. The stock exchange acts as a trusted intermediary between buyers and sellers, ensuring that all transactions are transparent and fair. Its role is vital to the economy for several reasons; it provides companies with a way to raise funds for growth and expansion by offering their shares to the public, and in return, it provides investors (like you) with an opportunity to invest their savings in these companies. The stock exchange is overseen by regulatory bodies such as Capital Market Authority (CMA) to ensure investor protection and maintain market integrity. Thanks to the stock exchange, you can easily find out the fair price of any stock at any given moment, and buy or sell your shares very efficiently, which is called "Liquidity".

A game of supply and demand: The secret behind daily stock price fluctuations

Why does a company's stock price rise today and fall tomorrow? The answer lies in one of the simplest economic principles: The Law of Supply and Demand. The price of a stock in the market is not randomly determined, but is a direct result of the interaction between the number of buyers (demand) and the number of sellers (supply).

• When demand increases: If a company reports strong earnings, launches an innovative product, or has positive news about its industry, more people want to buy its shares. When buyers outnumber sellers, the price rises because buyers are willing to pay a higher amount for the stock.
• When the supply increases: Conversely, if the company's results are disappointing, it faces legal challenges, or there are poor economic conditions, more shareholders may want to sell their shares. When sellers outnumber buyers, the price drops as sellers compete to attract the few available buyers. This constant interaction between millions of investors around the world, based on their expectations and opinions about a company's future, is what creates Daily fluctuations in stock prices. Understanding this basic dynamic helps you look at market movements with a calmer and more rational perspective.

Fuel for growth: How are corporate giants using the stock market to finance their expansion?

Have you ever wondered how a small startup managed to turn into a global empire? In many cases, the Stock market played a pivotal role in this success story. When a company needs significant capital to execute its ambitious plans - such as building new factories, expanding into international markets, or investing heavily in research and development - one of its best options is an initial public offering (IPO). Through IPOThe company sells part of its ownership to the public (investors) in exchange for a huge cash infusion. This financing, called "Equity Capital"is an essential fuel for growth. Unlike bank loans that must be repaid with interest, money raised from the equity market does not require repayment. Instead, investors become partners in the company's journey. This model not only benefits companies, but the entire economy, creating new jobs, encouraging innovation, and increasing the competitiveness of the national economy. Your investment in the stock market is, in essence, a direct contribution to funding the growth and development of these companies.

Investor or speculator? Find your own style in the stock market

The long-term investor: How do you become a partner in the success of big companies?

Long-term investor This is someone who buys stocks with the intention of holding them for many years, sometimes decades. His view of a stock is not just a symbol whose price changes on the screen, but True ownership in a company whose future he believes in. This type of investor doesn't worry too much about the daily or weekly fluctuations of the market. Instead, they focus on "Intrinsic Value" for the company. Before he invests, he conducts in-depth research known as "Fundamental Analysis"He studies a company's financial statements, evaluates the quality of its management, understands its business model, and analyzes its competitive strength in the market. His goal is to find strong, stable companies that have the potential to grow and generate increasing profits over the long term. The investor sees himself as a partner in the business, and rejoices in the success of the company as if it were his own. This approach requires Patience and disciplinebut historically it has proven to be one of the most effective and reliable ways to build real and sustainable wealth, capitalizing on the power of economic growth and the compounding effect of earnings over time.

The short-term speculator: The art of seizing opportunities from rapid market movements

In stark contrast to the investor, the Short-term speculator (or trader) to capitalize on short-term price movements in the stock market. His holding period may extend from a few minutes or hours (day trading) to a few days or weeks. The speculator's primary goal is not to participate in the growth of the company, but rather Make a quick profit from the price difference between buying and selling. Speculators rely heavily on "Technical Analysis"is the study of charts, price patterns, and statistical indicators to try to predict future market trends. They also follow breaking news and economic events that may cause sharp fluctuations in prices. This method requires A lot of time and effortconstant monitoring of the market, and the ability to make quick decisions under pressure. Although speculation can yield large profits in a short period of time, it also involves Very high riskas predicting short-term market movements is very difficult and can lead to quick and large losses. This route is not suitable for everyone, and requires advanced knowledge and a high risk tolerance.

[Comparison Table] Investment vs. Speculation: Which way is right for you in the stock market?

To help you understand the differences more clearly and determine which approach best suits your personality and financial goals, here's a comprehensive comparison table:

[Checklist] 5 questions that determine if you're ready to enter the world of stocks

Before you deposit a single riyal in the stock market, take a moment to honestly answer these five questions. Your answers will help you understand if you're really ready to get started and determine which path is best suited for you.

1. What is your financial goal in investing?
   • (a) Build wealth for long-term retirement (after 20-30 years).
   • (b) Generate additional income over the next few years.
   • (c) Trying to make quick profits in a short time. (If you answered A, you tend to Investment. If (c), you tend to SpeculationThis requires extreme caution).
2. How much can you afford to lose financially?
   • (A) I would be very concerned if my investment dropped by 10% in one month.
   • (b) I understand that markets fluctuate, and I can tolerate temporary dips without panicking.
   • (C) I am willing to risk losing a significant portion of my capital for the chance of making a large profit. (Investing requires patience to withstand fluctuations (B). If your answer is A, you may need to start with a very small amount or consider less risky investments.
3. How much time can you devote to tracking your investments?
   • (a) A few hours a month to review overall performance.
   • (b) A few hours a week to read news and reports.
   • (c) Several hours each day to monitor charts and prices. (Approach (a) fits Long-term investorwhile Approach C is necessary For speculator).
4. Do you enjoy analyzing businesses and understanding how they make money?
   • (A) Yes, I find it interesting and I love reading corporate reports.
   • (b) Not much, I prefer to focus on numbers and graphs.
   • (C) I don't care about the details of the company, I just want to know when to buy and sell. (Answer A) is mental Basic investor. Answer B is mental Technical Analyst/Speculator).
5. Do you have high-interest consumer debt (such as credit cards)?
   • (a) No, my debts are under control or I have no debts.
   • (b) Yes, I have some debts that I'm paying off. (Important advice: Before investing in the stock market, it's always wise to pay off high-interest debt first, because the guaranteed return from paying off the debt is often higher than the uncertain return from the market).

Everything you need to know about the Saudi Stock Exchange (Tadawul)

TASI: The pulse of the Saudi stock market and how to read it

When you hear on the news that "the Saudi stock market is up today," it usually refers to the performance of TASI - Tadawul All Share Index. You can think of the TASI as A measure of the performance and health of the market as a wholejust like a doctor takes your pulse to know your overall health. "TASI is a market capitalization-weighted index, which means it tracks the combined performance of all companies listed on Saudi Tadawul's main market. Larger companies (with a higher market capitalization) such as Saudi Aramco and Al Rajhi Bank have a greater impact on the movement of the index.

• When the TASI goes up: This means that the total value of the shares of most companies in the market is rising, indicating positive sentiment and investor confidence in the economy.
• When the TSE drops: This indicates that the value of the shares of most companies is declining, reflecting pessimism or anxiety in the market. For an investor, TASI provides an important snapshot of Overall Market TrendIt helps to assess the performance of your portfolio compared to the market as a whole.

Discover the market's treasures: A look at Saudi Arabia's top stock sectors

The Saudi stock market is not made up of one type of company, but rather a variety of different economic sectors, each with its own characteristics, opportunities, and challenges. Understanding these sectors will help you Diversify your investments and minimize risk. Some of the most prominent sectors in Saudi Tadawul:

• Energy sector: It is the dominant sector in the Saudi market and includes giants such as "Saudi Aramco. The sector's performance is heavily influenced by global oil prices.
• The basic materials sector: It includes major petrochemical companies such as "SABICwhich produces materials that go into many industries around the world.
• Banking and financial services sector: Considered the backbone of the economy, it includes leading banks such as "Al Rajhi Bank and "Saudi National Bank. This sector is characterized by stability and good dividends.
• ICT sector: Representing the backbone of the modern digital economy, it includes companies such as "STC" and "Mobily.
• Other promising sectors: Sectors such as healthcare, consumer staples, utilities, and real estate offer diverse investment opportunities. By spreading your investments across several different sectors, you can protect your portfolio from shocks that may affect one particular sector.

From Aramco to Al Rajhi: Meet the giants of the local stock market

The Saudi stock market is characterized by the presence of a number of leading companies not only locally, but globally as well. These companies, often known as "Blue-chip stocksTheir large size, financial stability, and strong reputations make them a popular choice for investors looking for long-term growth and relatively low risk. Familiarizing yourself with these companies is an excellent first step to understanding the market:

• Saudi Aramco: the world's largest energy company, and plays a pivotal role in the global oil market and the Saudi economy.
• Al Rajhi Bank: One of the largest Islamic banks in the world, it has a wide network of branches and a huge customer base in the Kingdom.
• SABIC (SABIC): A global leader in the diversified chemical industry, exporting its products to all corners of the world.
• Saudi National Bank (SNB): The Kingdom's largest bank by assets, offering a comprehensive range of banking and financial services.
• (STC): Saudi Arabia's largest telecommunications company, driving digital transformation and providing innovative ICT services. Investing in such companies means investing in Pillars of the Saudi economywhich is often a good option for beginners to start building their portfolio.

Investor's guide: Rules and Regulations of the Saudi Stock Market

Investing in the Saudi stock market is not a random process, but rather an organized activity governed by strict laws and regulations that aim to Investor protection and ensure the fairness and transparency of the market. The main entity responsible for regulating and monitoring the market is Capital Market Authority (CMA - Capital Market Authority). One of her most important roles:

• Organization and control: The CMA sets the rules that all market participants (listed companies, brokerage firms, investors) must abide by.
• Disclosure and transparency: The CMA requires listed companies to disclose all material information that may affect the share price (such as financial results, major management changes, and new projects) to ensure that all investors have access to the information at the same time.
• Combating unfair practices: It works to prevent price manipulation, insider trading and other practices that harm the integrity of the market. For investors, it is important to know that the Saudi market is also open to Qualified Foreign Investors (QFI), which enhances the market's liquidity and global standing. Having such a strong regulatory environment provides A layer of security and trustand gives you peace of mind that your investments are made in a regulated and transparent market.

Your step-by-step guide to buying your first stock in Saudi Arabia

Step 1: How to choose the best brokerage firm for stock trading in Saudi Arabia?

Before you can buy any stock, you need to open an account with Brokerage firm. This company is your gateway to the stock market, as it will execute buy and sell orders on your behalf. Choosing the right broker is a critical decision. Here are the most important criteria you should look for:

1. Licensing and regulation: Confirm Exactly that the brokerage firm is licensed and regulated by Saudi Capital Market Authority (CMA). This is the most important point of all to ensure the safety of your money.
2. Commissions and fees: Compare the trading fees charged by different brokers. Some offer low commissions, which is good for active traders, while others may have other fees such as custody or inactivity fees.
3. Trading platform: Is their platform (both web and mobile app) easy to use and stable? Does it provide the tools you need such as charts, news and analytics? Try a demo account if available.
4. Customer service: Do they offer good, responsive support in Arabic? You'll need help at some point, so having a reliable support team is essential.
5. Educational resources: Good brokers often offer articles, webinars, and educational videos to help their clients make better decisions. Take your time to research and compare before making your decision.

Step 2: Open your portfolio online in minutes (documents required)

In the past, opening an investment account required multiple visits and a long waiting period. Today, the process is Simple and fast It can be completed entirely online in a matter of minutes. Although the requirements may vary slightly from broker to broker, the process generally requires the following:

• Personal information: You will need to provide your basic information such as full name, date of birth, and contact information.
• supporting documents:
  • for Saudi citizens: A copy of your national ID card (valid ID).
  • For residents: A copy of your residency card (valid residency).
• Absher account: Most brokerage firms now use the National Unified Access Service (via Absher) to verify your identity electronically, making the process safe and fast.
• Bank account: You will need to provide your bank account information (IBAN) that will be linked to your investment portfolio for deposits and withdrawals.
• Investment Knowledge Questionnaire: You will be asked to answer a few questions to assess your knowledge of investment risks and set your goals. Once all the information and documents are submitted, the broker will review your application and activate your account, usually within one business day or less.

Step 3: How to safely and easily fund your account to start trading stocks

Once your investment portfolio is activated, the next step is to deposit funds into it to start your journey in the stock market. Brokerage firms in Saudi Arabia offer multiple safe and secure ways to fund your account, the most common and easy ones being:

1. Local bank transfer: This is the most commonly used method. You can transfer funds directly from your personal bank account to the broker's bank account. The broker will provide you with all the necessary details (bank name, account number, IBAN).
2. SADAD payment system: Many brokerage firms are linked to SADAD, which makes the deposit process very easy. You can pay directly through your bank's online banking, just as you would when paying any other bill. This method is often The fastest The money appears in your portfolio in a very short time. Important advice: Always start with an amount you feel comfortable losing. You don't have to start with a large amount. You can start with a small amount to test your strategy and learn how the market works, then gradually increase your investments as your knowledge and confidence grows.

Step 4: Explain how to place your first order for a stock in the stock market

Congratulations! You've opened and funded your account, and now it's time for the most exciting part: Buying your first stock. The trading platform may seem complicated at first, but the buying process is simple and follows logical steps. (Imagine that there are pictograms for each step):

1. Log in and search for the stock: Log in to your trading platform. You will find a search box. Type in the name of the company you want to invest in or Ticker Symbol (for example, Aramco's stock code is 2222).
2. Go to the trading screen: After selecting a stock, you will see a screen with detailed information such as the current price, a chart, and "Buy" and "Sell" buttons. Press the "Buy.
3. Fill in the order details: A purchase order window will appear. Here you will need to select:
   • Order Type: The two main options are "Market Orderwhich buys the stock at the best price currently available, and "Limit Orderwhich allows you to set the maximum price you're willing to pay. For beginners, a market order is often the simplest.
   • Quantity: Select the number of shares you wish to purchase.
4. Review and confirm: Before pressing the final execution button, the platform will give you a summary of your order: Stock name, quantity, estimated price, commission, and total. Review these details carefully.
5. Execution of the transaction: If everything is correct, confirm the order. The transaction will be executed in seconds, and the shares you bought will appear in your portfolio. Congratulations, you are officially a shareholder!

Smart strategies for beginners: How to avoid the most common stock market mistakes.

"Don't put all your eggs in one basket": The art of diversification to protect your wallet

This old adage is perhaps the most important investment advice of all. Diversification It is a basic risk management strategy that simply means not investing all your money in one asset or company. Imagine you invested all your savings in just one company's stock. If that company runs into unexpected trouble and declares bankruptcy, you could lose your entire investment. However, if you spread your money across 10 or 15 different companies operating in diverse sectors (such as banking, energy, telecommunications, and healthcare), the performance of your portfolio will not depend on the success or failure of one company. If one stock underperforms, the good performance of other stocks can offset that loss. Diversification can be achieved by:

• Diversification across companies: Investing in several different companies.
• Diversification across sectors: Spread your investments across different economic sectors.
• Diversification across asset classes: In addition to stocks, consider other assets such as bonds, bonds, or real estate. Diversification doesn't guarantee profits or completely prevent losses, but it The best way to minimize unnecessary risks and make your investment journey smoother and more stable in the long run.

[comparison table] Fundamental or technical analysis? Choose your weapon to analyze stocks

When it comes to picking stocks, there are two main schools of analysis used by investors. Understanding the difference between them will help you develop your own strategy.

Advice for beginners: Often starting with Fundamental analysis is the safest option. Focus on understanding the companies you are investing in and choosing strong companies with a good track record. You can later incorporate some simple technical analysis concepts to better time your buys and sells.

3 golden tips to manage stock market risk and preserve your capital

Success in the stock market isn't just about picking winning stocks, it's also about By avoiding large losses. Preserving your capital is always the first priority. Here are three golden tips that will help you manage risk effectively:

1. Don't invest based on emotions: An investor's biggest enemy is Fear and greed. When markets rise, greed drives people to buy at inflated prices. When markets fall, fear drives people to sell in a panic at the worst possible time. Have a clear investment plan and stick to it. Make decisions based on research and analysis, not media hype or rumors.
2. Use a Stop-Loss order: This is one of the most important risk management tools. A stop-loss order is an order you place with your broker to automatically sell a stock if its price reaches a certain pre-determined level. It acts as a "safety net" that limits your potential losses. For example, if you buy a stock at 50 riyals, you can place a stop-loss order at 45 riyals. This means you are willing to risk a maximum loss of 10% on this trade.
3. Invest only what you can afford to lose: The importance of this rule cannot be overstated. Never invest money that you may need in the short term (such as emergency funds or a down payment on a house). The stock market can be volatile, and you should be psychologically and financially prepared to see the value of your investments drop without it affecting your daily life.

Conclusion: Your stock market journey is just beginning

Summary of the guide: Top 5 lessons I learned today about the stock market

We've come a long way together in this guide, from understanding why investing is important to how to buy your first stock. If you had to remember only five things from everything you've read, these would be them:

1. Investment is a necessity, not a luxury: In the face of inflation, investing in Stock market One of the best ways to protect the value of your money and grow it over the long term.
2. Knowledge is power: Before investing any amount, take the time to understand the basics: What a stock is, how the market works, and the difference between investing and speculating.
3. Start with companies you know: The Saudi stock market is full of leading companies that are part of our everyday economy. Starting by investing in these large and stable companies can be a safe starting point.
4. Diversification is the key to safety: Don't put all your money in one investment. Spread your investments across different companies and sectors to minimize risk.
5. Patience and discipline are your allies: Building wealth takes time. Don't be fazed by short-term market fluctuations. Stick to your investment plan, be patient, and let the power of compound growth work in your favor.

Where are you headed now? Reliable resources to continue learning about stock investing

This guide is your gateway to the world of investing, but the learning journey never ends here. The more you know, the better your decisions will be. To continue developing yourself as an investor, we recommend checking out these trusted resources:

• The official website of Saudi Tadawul: The first source of information about listed companies, market performance, and official news.
• The official website of the Capital Market Authority (CMA): Provides comprehensive information on laws and regulations, as well as awareness materials to protect investors.
• Reliable financial news sites: Follow well-known economic news portals such as Arqaam and CNBC Arabia to stay up to date with the latest market developments.
• Corporate annual reports: If you are interested in a particular company, reading its annual report is the best way to understand its business model, financial performance, and future strategy.
• Classic books on investing: Books like Benjamin Graham's "The Intelligent Investor" can provide you with invaluable investment wisdom.

Frequently asked questions about stock trading in Saudi Arabia

What is the minimum investment threshold in the Saudi stock market?

there is no Official minimum It is stipulated by law to start investing in the Saudi stock market. In theory, you can start by buying just one share. The price of a share varies from company to company, you may find shares priced at 10 riyals and others at 200 riyals. Therefore, the actual minimum is simply the price of the stock you wish to buy plus the broker's commission. Many brokerage firms also do not impose a minimum account opening or deposit amount. This means that Investing is for everyone Regardless of the size of their budget. As a tip, it's a good idea to start with a small amount that you feel comfortable with until you gain experience and confidence.

Are there taxes on dividends for retail investors in Saudi Arabia?

This is one of the big advantages of investing in the Saudi stock market for retail investors. According to the current regulations (as of late 2025). Capital gains are not taxed realized by individual investors from the sale of stocks listed on the market. Capital gains are the difference between the selling price of a stock and its purchase price. This means that if you bought a share for 1000 riyals and sold it for 1500 riyals, your profit of 500 riyals is tax-free. However, it is always important to follow any updates or changes in tax regulations from official sources such as the Zakat, Tax and Customs Authority.

How do I choose a good and suitable stock as my first investment?

Choosing your first stock can be a confusing decision. As advice for beginners, it's best to take a conservative and simple approach. Here are some guidelines:

1. Start with what you know: Think about companies whose products or services you use and trust. Understanding a company's business model gives you an advantage.
2. Focus on large, stable companies (blue-chip stocks): Companies that are leaders in their sectors and have a long history of profitability and growth (such as major banking or petrochemical companies) are often less volatile and less risky.
3. Look for sustainable growth: Choose companies that show consistent growth in their revenues and profits over the past few years.
4. Avoid stocks with a lot of hype: The stocks that everyone is talking about are often overpriced. Don't follow the "herd" without doing your own research. The goal of your first investment isn't to get rich quick, it's to Learning and gaining experience on the market.

Should I monitor my stocks every day?

The answer depends largely on your style:

• if you are a long-term investor: Absolutely not. It is not necessary, and may even be harmful, to monitor your stock prices on a daily basis. Daily fluctuations are just noise that does not reflect the true value of the company. Constant monitoring can lead to emotional decisions such as panic selling. It's enough to review your portfolio Once every three months or six monthsas companies announce their financial results, to make sure your strategy is still on track.
• If you are a short-term speculator: Yes, daily and continuous monitoring is necessary because your strategy relies on capitalizing on short-term price movements. For most beginners adopting a long-term investment approach, it's best to Focus on the company's core business rather than its daily stock price.

The bottom line and the beginning of your investment journey

We now come to the end of our comprehensive guide. We hope it has demystified the stock market and provided you with the confidence and knowledge to take your first steps. Here are the most important points you should always remember from this article:

• Investing is not an option but a necessity: To combat inflation and protect the value of your hard-earned money, access to the stock market is an essential tool, not a luxury.
• Knowledge precedes capital: Before investing a single riyal, it is essential to understand basic principles such as what a stock is, the fundamental difference between investment and speculation, and how the market works.
• Getting started is easier than you think: Thanks to modern technology and platforms, opening an investment portfolio and buying your first stock are simple, straightforward steps that anyone can do from the comfort of their own home.
• Risk management is the key to success: Sustainable success comes not only from making quick profits, but also from protecting your capital through smart strategies such as diversification and making rational decisions without the noise of emotions.

Acknowledgments

We would like to thank you for taking the time to read this guide to the end. The fact that you have reached this point proves your seriousness and your genuine desire to build a better financial future for you and your family.

Always remember that every expert investor was once a beginner just like you. The journey may seem long, but taking the first step is the hardest part, and you have already accomplished it by gaining this knowledge. We wish you all the best in your investment journey.