Posted by forex at 8:40 AM
Read our previous post
1. Pick a broker by deciding from among full-service brokers, money managers, online/discount brokers or discount brokers with assistance. Consider commission rates, financial vehicles offered, trading options, minimum deposit and customer service quality when you pick your broker. You may use broker comparison tables offered by some trustworthy sites such as Barron, Smart Money and NASDAQ to help make your decision.
2. Open a stock trading account. Based on your risk appetite, you can choose between cash (less risk) and margin account (more risk). If you want to save on taxes, open an IRA account instead of a normal trading account . Most online brokers offer online account opening applications. Some brokers still require paperwork you have to complete and mail back to them.
3. Deposit money by check, wire transfer (with a small fee), free ACH direct deposit, stock certificate or a transfer into your trading account from another brokerage house. Based on what available deposit methods your broker offers, select the method with which you are most comfortable.
4. Research and buy your first stock. Use the research resources your broker offers, or use many free trustworthy resources such as NASDAQ, Amex, AOL, Yahoo! Finance and MSN Money to find good stocks. Use your investment knowledge to analyze each stock. Make your first trade by placing an order.