At this point, you should be able to identify yourself on what kind of investor you are, as well as taken into consideration contemplating about your financial plans for your future. I have also covered, previously, a topic about choosing the good stocks to invest in, hopefully by now, you're ready with your chosen company or business where you want to buy stocks from.
Nowadays, trading is done mostly online, so we will be covering basically the steps on how to buy stocks online. If you're a beginner and have knowledge about computers and accessing the internet, you're half-way to learning to buy your first share of stocks that you are going to invest in your money.
Remember, if you're a beginner as advised, it is recommended to start in long-term investment first and work your way to a more advance and sophisticated way of investing as well as learning how to analyze the market and the company you're buying stocks from.
The Basics Of How To Buy Stocks Online
As I've mentioned, most trading these days are done online and it's convenient for both the investor(you) and the online stock broker.
Here are the steps;
- Decide which stocks you want to invest in.
- Decide how much money you're going to invest, taking consideration about your financial plan
- Choose a stock broker, call them and ask the requirements for opening an account. Also inquire about the necessary fees or commissions that they're asking for every trad you are making.
- Before opening an account with that broker, try to canvass at least 3 online stock brokers and compare their fees and the tools they have that can help you in your trading journey, not to mention, check some testimonials and reviews on each stock broker you are inquiring.
- Once you've decided and picked the broker you're going to signup with.. Open and account with them and make the necessary deposit if they require as well as accomplish the paper works they require, you might come to their office to complete the forms or send it through fax if they agree.
- Wait for your account to be activated, most of the time it is activated quickly specially if you're using an online payment system to pay all the necessary fees during the signup. If something goes wrong, don't be shy, call them and ask for support about things you're confuse.
- Once you're account is activated and ready, never make an actual buying or selling of stocks right away. What you need to do is, go through your online broker's platform or system and familiarize everything on how you're going to buy or sell stocks. This is very important as it will be a hassle when you start trading and you don't know the things in front of your computer monitor.
- Once familiar with the dashboard of the online trading system, always go with or use the trading simulator first before making your first trade. Most online stock brokers have trading simulators and this should be among the things you should be inquiring before signing up.
Stock trading simulators allows you to buy and sell stocks but using virtual money, meaning, if you're making a mistake you're not going to lose real money, but virtual money instead. Simulators help you familiarize and setting your mindset before going into live stock trading.
- Now you're ready to start making a live trading. Make sure you've done your homework, choosing the stocks you want to invest in and the amount money you're willing to invest even you lose it.
- At the end of the trading day, whether you lose or gain, start analyzing the things that just happened, this is where you start learning the process of analyzing stocks. Perhaps on your first day of actual buying of stocks, you won't sell it immediately the next day.
That's why before you go into live trading, you already have something in mind that you gonna hold for sometime while learning your way to day trading.