The Complete Guide on How to Buy and Sell Stocks
Buying and selling stocks can be rewardable, yet risky as the Stock Market could crash at any time, for any reason. So I am going to break it down for you in seven simple steps.
STEP 1: Educate Yourself
You should fully educate yourself on stocks before purchasing anything. There are many ways to do this. There is the Internet and many books available, but sometimes the best way is to talk to someone in person. To do this, you can contact a broker or firm to learn more about it.
STEP 2: What do you want in a broker or brokerage account?
You should always ask yourself this question. Will you need to access the Internet a lot? Do you want to meet with someone face-to-face to talk about your decisions? Is price the only thing that matters to you when buying stocks? These are all questions to consider to help you decide what exactly you want in your broker or brokerage account.
STEP 3: Choose a broker or brokerage firm
You should choose a broker or brokerage firm that will suit your needs. Will you need a lot of advice? Sometimes, the least expensive brokers do not offer you advice if you were to need it. So you should start out with a full-service brokerage. Are you comfortable and confident, yet want lower prices? You can go with the least expensive brokerage, but I reccommend you try an online brokerage.
STEP 4: Request an Application
Contact a broker or firm and request an application. Some firms offer online applications, but need money to actually open the account. If possible, deliver the check in person and this will speed up the process.
STEP 5:The Account is Open
Once the account is open, you can start buying and selling stocks.
STEP 6: Review Statements
You can read statements that you receive. You can review the performance, and decide if you are reaching your financial goals.
-Ask friends, colleagues, or brokers for more information. If you don’t have anyone to talk to, there are some financial publications such as The Wall Street Journal.
–Make sure you are clear and tell the firm to show all costs. Watch out for hidden costs.
-It can take a few days to open an account, so you will not be able to buy and sell stocks the day you opened the account.
-Remember, buying and selling stocks can be very risky. So plan carefully, and make sure you think everything through before making a decision.