Have you always wanted to trade in stocks but held off because the system seemed too complicated? This is the place for you. This step-by-step guide will help you buy your first stock. Remember that buying stocks is easy. It’s investing wisely which is the key to making wealth in stocks.
Figure out Whether You Can Invest Right Now
Answer this question as honestly as you can. It’s too risky to start trading in stocks (even if you have a hot stock tip) if you have credit card debt or don’t have an emergency fund. Beginners should always start with strong financial health before starting a brokerage account.
Open a Brokerage Account
Find a broker online and open and fund a brokerage account.
Look for Strong Businesses
When you buy stocks, you are directly investing in a business. Choose businesses that have a competitive advantage, a solid balance sheet and good leadership. This kind of research will pay off in the long run.
Enter Your Order
Go to your broker’s website and enter your order. The order page has ticker symbols that represent stocks of various companies. Search for the ticker for the business you want to invest in. Enter the details of your trade. You will need to input the number of shares you want to buy or whether you want a market or limit order.
Check on Your Stock
Now that you own a piece of a business you trust, check that stock once in a while. Resist the urge to check in very frequently since initial traders are prone to anxiety when their stock drops even by a penny or two. Don’t second guess yourself. Instead, keep up with the business you have invested in by reading their company news and their quarterly and annual reports.