How To Trade Stocks

Are you new to Wall Street? Would you like to start investing in different stocks but always believed you needed a broker? Well, the truth is you can start investing in stocks without a broker. The information I will provide will outline an introduction to stock trading. I am already assuming you are participating in your employer 401(k) plan so this information will center around trading stocks in an account you have full control over.

Before you begin making money from trading stocks you have to open a brokerage account. Opening a brokerage account is not a hard task and can be done without a financial advisor. Honestly, if you open an account with a broker you are more likely to pay a higher commission fee for each trade. If you want to keep your fees down open an account at a discount broker without the help of an advisor.

After you have set up your brokerage account get acquainted with the system. Learn about the different types of order you can enter such as: Market orders, Limit orders, and stop orders. For the sake of this article being an introduction into stock trading I will not focus on types of orders. After you have become familiar with the system it is time to start trading.

Now is the time to figure out which securities to purchase. As a beginner, I would recommend purchasing companies you already know. For example, if you like to get a cup of coffee each morning from Starbucks purchase their stock. If you like McDonald’s cheeseburgers why not buy the company stock. Start out purchasing companies you know and like.

In the previous paragraphs I have outlined how to begin stock trading. Open a brokerage account and start buying stocks. You can purchase a small amount of shares and you will be amazed how your portfolio can grow. You are in charge of your financial future so start now.

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