A Beginners Guide to Buying Stocks

How to Start Buying Stocks

Start Buying Stocks Online

The business of stock trading is no longer an exclusive privilege of rich individuals, big firms and banks. Stock market has been exposed to rapid changes over the past years and the rapid strides in information technology have opened up great opportunities and possibilities in the world of stocks. Thanks to online stock trading and stocks day trading,   individuals like you can now get onto the business of buying stocks. In this post we share with you some important things to know about stocks as well as guidelines on how to start buying stocks.

In order to buy stocks you need the help and the services of a stock broker. A stock broker is someone who is licensed to purchase securities on behalf of the trader. Before you can identify the suitable broker for your stock trading endeavor you need to be very clear with your goals and objectives. Once you know what you want to achieve then you are better positioned to get the best stock broker who will help you to reach your goals.

Stock brokers can be placed in various categories. There are simple order taking brokers and there are also more expensive brokers who offer fully fledged brokerage services. These also offer comprehensive analyses as well as advice and recommendations. Brokers can also be categorized as online discount brokers, full service brokers or money managers.

What you need to know here is that online trading brokerage simply serves to take orders and to provide cost-effective ways for traders that want to start buying stocks. With this service there, is no physical office and there are no certified financial planners to help you. You can contact the broker over the phone or via the internet. This is one of the cheapest ways of conducting stock trade as cost is determined on per transaction basis.

The foregoing means that as a beginner trader you can start buying stocks with very minimal capital. A trading account with online stock broker affords you access to the virtual stock market right away. If you open such an account you can start buying and selling stocks immediately. This brokerage service does not come with investment advice, tips or any form of investment recommendations. With such an account as a trader you will be on your own. Online brokers however offer technical support on issues that pertain to the online stock trading platform. Different brokers do offer some educational resources and materials but in many cases the information resources are sourced from third parties. This kind of approach to stock trading is good if you want to take stock trade onto your own hands and you want to get a foot hold in stock trading without committing much risk capital.

If you need some level of guidance in buying and selling stocks online you can contract the services of a discount broker. These function more or less like online brokers but they can offer you some help and guidance at a cost. The help you get from discount brokers is normally limited to just some educational resources. The information provided by this category of brokers in not fully hands-on stock trade guidance.

If you want to go into stock trade and you want to begin doing it the conventional way then you need a full service stock broker on your side. A full service stock broker will make time to get to know you and your goals and then familiarize you with different concepts and dynamics of buying and selling stocks. A full service broker will consider many aspects about you. This helps them to know what kind of a trader you are and the goals you have.

The full service stock broker would require knowing about your marital status, risk tolerance, personality, age, lifestyle, assets, income as well as your credit profile and more. The broker will then develop a full service plan for your trading endeavor. “Full service broker” means the broker is not just limited to stock trading. The broker may assist you with retirement planning, tax advice, estate planning, budgeting etc.

If you need everything in one package then getting for a full service stock broker is the best way. Understandably, these brokers are more expensive that online and discount brokers owing to the wide range of services they offer. If you are keen to get hands-on with buying and selling stocks you can sign up and start trading on a simulator stock trading account today. “Simulator” simply means everything in there is simulated (not real). In this learning platform you will trade with demo money and all the activity is designed to help you learn how to start buying and selling stocks.

We recommend the Investopedia Simulator . The account will give you up to $100 000 demo money that you can use to learn how to start buying and selling stocks.

Online Stock Market Trading: How to get started

How to start Buying Stocks Online

Unlike in the past when stock trading was a preserve of the rich individuals, financial firms and banks, nowadays the stock market has been opened up to just anyone and everyone who can afford to trade and has what it takes to open an online stock market trading account. With the rapid developments in technology the stock market has become more accessible. Those who have attempted online stock market trading understand that this business cannot be taken lightly. With great prospects comes great risks. Huge loses can be incurred especially if the trader approaches stock market as a guaranteed way of raking in easy profits.

In this post we aim to demystify online stock exchange. Many traders do not know exactly what happens after clicking submit button either to buy to sell stock online. Before we delve into what stock exchange really is we need to look at the players that comprise the stock market industry. The stock market is made up of companies (entities who own stocks that is being sold or bought) as well as other traders and investors like you are. The stock market will not be complete without brokers. Brokers are stocks experts and professionals who give stock trade advise as well as execute trading orders on behalf of the clients (traders).

In stock trade, there are professional institutional traders who buy and sell stocks on behalf of the firms and companies they are trading for. These usually handle large capital investments in comparison to individual traders.

Defining Online Stock Market Trading

In the traditional and conventional realms, stock exchanges, also known as bourses, are places designated for the buying and selling of stocks. These are places were stocks orders processing also takes place. Some of the conventional stock exchanges include the New York Stock Exchange also known as NYSE. This an example of a physical stock exchange. The rapid strides in innovation have opened up access to the stock market such that through what is known as online stock market trading individuals and companies have access to virtual stock exchange (bourses).

Online stock market trading is conducted over platforms provided by different brokers. In online stock trade, the online broker takes the place of a human broker. Even if everything is virtual here, as a trader you still use real money to buy and sell stocks. While trading stock exchange will involve the trader interacting with a broker on trade decisions and activity, in online stock market trading the trader decides on his/her own about which stocks to buy and sell. As an online stock trader, you will request trades on your own. There are, however, some broker-assisted forms of trading. In these forms of trade the trader gets assistance from live brokers who offer broker-assisted trades at a cost.

Now that you have run through the basic insights on online stock market trading, there are some important things to consider before you go into online stock market trading. One of the important areas to pay good attention to is the aspect of choosing a broker. As a beginner you need good guidance and help as you learn the ropes of online stock market trade. Different brokers offer different forms and levels of help. Some of the critical aspects to consider when choosing an online stock market broker include but are not limited to:

  • How much risk capital (money you can afford to lose) you have. Each broker has a minimum deposit requirement. It is wise to start off with brokers that require low minimum deposit.
  • How frequently you want to trade. There are costs associated with holding stocks and positions. As a trader you need to be aware of all this so as to make well informed decisions.
  • If you plan to trade frequently then a low trade fee broker will enable you to conduct trade cost effectively.

Key to your check points is the aspect of customer service. As a beginner trader you want the helping hand of a patient and competent broker who will offer you everything you need in order to achieve your set goals. That is the bottom line. The next post focuses on how and where to get started in online stock market trading. Take note that almost every online stock market broker provides a demo account where as a beginner you can practice trade with demo money until you are ready to trade with real money in a live trading account.

Free online stock trading: What you need to know and where to start

Did you know that it is possible to trade stocks for free online? How so? The short answer is that there are many stock trading companies that offer free online stock trading to traders. Like they always say, there are no free lunches! The catch in free online stock trading is that the trader needs to meet requirements of minimum deposited stipulated by the trading company for the trader to be eligible for free online stock trading.

In this post we covered some of the dynamics that go with free stock trading. The post also features some of the top trading companies that offer free stock trading and the minimum deposits that traders need to maintain in order to access this specialized form of trading. Take note that free stock trading does not mean that there is no money involved whatsoever. What is free in this context is the trading service. In a normal non free trading account there are broker commissions and service costs that are charged on the trader. If you can qualify for a free online stock trading it means you will not have to pay these costs and brokerage commissions.

Forex and Stock brokers have a lot to gain from clients with huge risk capital to invest and this is the reason why brokers give traders with huge risk capital preferential treatment. As featured in this resource, USAA  stocks trading company does not require any funding. As a trader all you need to do is to set up an account and the platform will automatically afford you 50 free trades within the first 90 days after your sign up.

Companies that Offer Free Online Stock Trading

There are several companies which offer ultra-lucrative free trading promotions to traders with huge risk capital to kick of their stock trading endeavors. If you have at least $10 000 to kick start your trade endeavor you can consider the following companies

ETRADE

For a minimum deposits of $10 000, Etrade will give you 60 days of free trades. the company also offers 90 commissions-free ETFs derived from 3 fund families and the account does not attract any annual fee.

Charles Schwab

If you have up to $50 000 to start your trading streak Charles Schwab will give you 100 commission-free trades. The condition however, is that the free trades cap must be used within 180 days. The company also offers integrated banking, which includes access to mortgages, savings and checking. The banking services are designed for investors that want to consolidate their financial management.

Merrill Edge

Merrill Edge is another great stock trading company with super lucrative free trading promotions. With this company there are three ways to be eligible for commission-free trades per month. The first way is to maintain a BofA deposit of $25 000, the second way is to maintain cash of up to $25 000 in your Merrill Edge self-directed accounts. The third and last alternative is to maintain a balance of $50 000 as a sum of your Bank of America deposit plus Merrill Edge brokerage accounts.

This is not an exhaustive list but we have shared with you options where you can enjoy free online trading depending on your risk capital.

Free Stock Trading: What it is and Companies to Consider

One of the biggest fears that individuals and companies have when starting out in the business of forex and stocks is losing money. As much as we have emphasized the importance of having good risk capital (money you can afford to lose), losing money is never welcome. Many stock brokers charge significant commissions on the traders they are trading for and these commissions may amount to a steep lap for new traders who are yet to attain a financial foothold. The good news we have for those who are starting out on stock trading with minimal cost is that there is what is known as free stock trading.

In a free stock trading environment the trader can trade for free as well as close a trade for free. Free stock trading can be accessed in certain special circumstances. If you can position yourself for stock trade promotions then you have good chance of conducting free stock trading. In most promotional campaigns, traders and retail investors can trade for free for between 60 and up to 90 days. Free stock trading does not cancel out the need to have a minimum deposit. What are eliminated in free trading are commissions and other charges that are incurred across various trade activities including closing the trade.

In order to enjoy the merits of this kind of trading the trader still needs to have a few thousand dollars in their trading account. What goes with this kind of trading is that with more money to invest the trader has several options to explore for free stock trading. Once you have good capital to invest, brokers would want to keep you as their customer and one of the ways of keeping you in their client base is presenting lucrative free trading options to you. Brokerages would keep you around so that they can sell their high cost service to you later in your trading streak.

If you are a shrewd trader and you have various trading brokerage options in your tabs, you can take advantage of promotions in different trading platforms by switching your accounts over to brokerages where you can enjoy free stock trading. If you are smart at this you can be in a position to take advantage of various promotions so as to avoid trading costs and commissions payable to stock brokers.

While considering this as a trader you need to be cautioned that transferring a trading account will incur certain inevitable costs. In some cases, moving a trading account around is not the best way. Signing up with a low priced discount broker may be the best way to conduct trade affordably. While identifying the best low priced discount brokers, do not overlook other important aspects of the brokerage service such as customer service and whether or not the brokerage has everything you need to achieve your set trading goals.

These are some of the companies that offer free stock trading online

There are many trading companies that traders can sign up with to take advantage of free stock trading promotions. Take note that these promotions are availed to traders with the required minimum funds.

USAA allows traders to trade free for 90 days. The company has scored well in the aspect of customer service and you do not necessarily need to be military personnel to open an account.

If you have at least $2000 to start off, Ameritrade will allow you to trade for free for up to 60 days. The company is endeared for offering top tier research towards getting reasonable prices. The company also presents powerful intuitive data analytics.

If you have risk capital of up to $5000 OptionHouse  gives you up to 100 commission free trades for both stocks and options . You can enjoy this free stock trade for 60 days. Firsttrade will also give you 100 commission free traders if you keep your account open for at least year with a minimum balance of $5000.

Online Stock Market Trading: How to get started

Unlike in the past when stock trading was a preserve of the rich individuals, financial firms and banks, nowadays the stock market has been opened up to just anyone and everyone who can afford to trade and has what it takes to open an online stock market trading account. With the rapid developments in technology the stock market has become more accessible. Those who have attempted online stock market trading understand that this business cannot be taken lightly. With great prospects comes great risks. Huge loses can be incurred especially if the trader approaches stock market as a guaranteed way of raking in easy profits.

In this post we aim to demystify online stock exchange. Many traders do not know exactly what happens after clicking submit button either to buy to sell stock online. Before we delve into what stock exchange really is we need to look at the players that comprise the stock market industry. The stock market is made up of companies (entities who own stocks that is being sold or bought) as well as other traders and investors like you are. The stock market will not be complete without brokers. Brokers are stocks experts and professionals who give stock trade advise as well as execute trading orders on behalf of the clients (traders).

In stock trade, there are professional institutional traders who buy and sell stocks on behalf of the firms and companies they are trading for. These usually handle large capital investments in comparison to individual traders.

Defining Online Stock Market Trading

In the traditional and conventional realms, stock exchanges, also known as bourses, are places designated for the buying and selling of stocks. These are places were stocks orders processing also takes place. Some of the conventional stock exchanges include the New York Stock Exchange also known as NYSE . This an example of a physical stock exchange. The rapid strides in innovation have opened up access to the stock market such that through what is known as online stock market trading individuals and companies have access to virtual stock exchange (bourses).

Online stock market trading is conducted over platforms provided by different brokers. In online stock trade, the online broker takes the place of a human broker. Even if everything is virtual here, as a trader you still use real money to buy and sell stocks. While trading stock exchange will involve the trader interacting with a broker on trade decisions and activity, in online stock market trading the trader decides on his/her own about which stocks to buy and sell. As an online stock trader, you will request trades on your own. There are, however, some broker-assisted forms of trading. In these forms of trade the trader gets assistance from live brokers who offer broker-assisted trades at a cost.

Now that you have run through the basic insights on online stock market trading, there are some important things to consider before you go into online stock market trading. One of the important areas to pay good attention to is the aspect of choosing a broker. As a beginner you need good guidance and help as you learn the ropes of online stock market trade. Different brokers offer different forms and levels of help. Some of the critical aspects to consider when choosing an online stock market broker include but are not limited to:

How much risk capital (money you can afford to lose) you have. Each broker has a minimum deposit requirement. It is wise to start off with brokers that require low minimum deposit.

How frequently you want to trade. There are costs associated with holding stocks and positions. As a trader you need to be aware of all this so as to make well informed decisions.

If you plan to trade frequently then a low trade fee broker will enable you to conduct trade cost effectively.

Key to your check points is the aspect of customer service. As a beginner trader you want the helping hand of a patient and competent broker who will offer you everything you need in order to achieve your set goals. That is the bottom line. The next post focuses on how and where to get started in online stock market trading. Take note that almost every online stock market broker provides a demo account where as a beginner you can practice trade with demo money until you are ready to trade with real money in a live trading account.

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