Posted by forex at 1:40 AM
Read our previous post
1.
There are two ways to trade stocks, electronically and on the exchange floor. In this article we are going to invest electronically via an online broker. But before you start an account you need to get comfortable with stock terminology and the general mechanics of day trading.
2.
When you purchase stocks you are investing directly in a piece of a company. When the company grows and does well your stock rises. And in some cases they share the profit with you which is a dividend. But you are also at risk if the company does not perform well. If the company has bad quarter you stock will most cartainly show it
3. There are many ways to invest in the stock market but beginners should focus on long term investing. Long term investing generally carries very little risk when compared to other method such as margin trading. Basically if the market turns against your investment you can ride it out with time as long as your company survives.
4.
After you spend some time learning the basics of stocks you should begin researching companies. I personally research my stocks heavily before I even think about buying one share. This greatly reduces risk. The more you know before you buy the greater you chances are of getting a return on your investment.
5.
When you decide on what stock you want to purchase you need to set up a broker account. This is extremely easy to do. The two I use are sharebuilder and scottrade. Sharebuilder has a very low initial investment amount, I think I started with one hundred dollars. I posted there link in the resources.
6.
After you make your first investment continue to educate yourself on all things stock related. Also follow the news on the stock you invested. At the time of writing 04/03/2009 I invested in 100 shares of oil at 27 dollars a share stock ticker (USO). I'm 99.9% positive I will double my money in one or two years. These are the kind of trades you should be looking for. In conclusion, educate yourself and open a online trade account and make an informed investment in a stock.