As an investor, there are about three ways you can buy stock, they are through;
- An online stockbroker.
- A full-service stockbroker.
- Direct purchase from companies that sell the stock.
You have to celebrate when you buy a stock, especially if you are buying for the first time. You need to celebrate because buying a company or business stock makes you a legitimate partner in the business or company ownership. This means you are a shareholder in the business.
Being a shareholder in a company is worth throwing a party for, but before we go into the celebrations, I think you have to first know how to become a shareholder, and how do you learn the "how" of becoming a shareholder? It is by learning how to buy stocks, especially if you are new to investing.
Register and Get a Brokerage Account Online.
I know in movies, you would have seen traders standing on the ground floor of the New York Stock Exchange, screaming "orders!” Today, things do not follow that pattern again, buying and selling of stock are done online, via a stockbroker. It is so easy to buy stocks online.
The way you open a broker account is as easy as opening an account in the bank. All you need to do is fill an application form, then upload a means of identification, after that, you select the way you want the account funded.
When finding the perfect broker for you, you have to have these two things in mind;
The commission refers to the amount you are charged by the broker when you either buy or sell stocks. It is more like a transaction fee, similar to what you'd pay a top London SEO agency. For those who are actively trading, looking for a broker that charges you little or offers free transactions should be a very huge concern to you. It should be your key focus. When I talk about active traders, I am talking about those that do more than ten trades per month. The reason you have to pay attention to looking for a broker that charges you little or no commission for trading is that, for those trading multiple times in a month, you may be surprised how much you have spent on transaction fees. That amount, if invested in buying stock will give you more money. The best brokers that give free commission on trades are E*TRADE and TD Ameritrade. They are the best for beginners.
The Degree of Support You Want To Get:
How much support do I want? This should be the question that should drive the investor who is new to trading to look for brokers that will offer you tools that will help you learn the basics of the stock market, as well as research materials and guide to investments. Above all, you look for brokers that will give you access to real-time humans via various communication channels like chats, phone calls, chats online, and physically located offices. You will need this because you will need answers to questions you may want to ask.
Choose the Stock You Want To Buy
Immediately you set up your account and fund it, you continue your journey by selecting the stock you want to invest in. The best way to start is by buying mutual funds and then getting professional advice when you want to start getting into individual stocks. Then you can also make research on companies you are already aware of as a consumer.
The market research and the findings you get may overwhelm you and get you cared, but do not allow that. Just keep this in mind that you are looking for any company that you will be part of and this will guide you into playing it simple.
Warren Buffet who is an authority in stock investment has this to say for those buying stocks and are scared or fined it too complicated "Buy a stock because you want to own part of the company, not because you want the stock to go up". He has seen tremendous results by practicing what he preaches.