Buying and Selling Stock


Thinking of trying your hand at being an investor on the stock market? If you want to stick your toe in the hot waters of the stock market be sensible and learn how stocks are bought and sold before you ever invest any money. There are a number of books for beginners on the market to help you learn all about investment buying.

After reading as many books as you possibly can about how the stock market works and the best way to trade etc., you will be eager to try out all your newfound knowledge. However, the next step should be for you to research thoroughly the investments you are interested in and to open a virtual account with one of the free, on-line trading platforms. With a virtual account it will feel like the real thing but even if you lose on your trade you won’t be at risk of losing your hard-earned money.

When you are confident that you have done all your homework and are ready to trade in the real world you will have to open a “trading account” with either an on-line broker or a full-service broker. All trades are done through a “trading account”. On-line brokers are not as expensive as full-service brokers are so most individuals use on-line brokers.

Check the Internet for brokers who will be able to offer you the facility to invest in stock on-line. You will find that there are a number of lists available, which will give you help in finding an on-line broker. However, although these lists are useful the tests they apply to create their broker rankings may not always be appropriate for your situation.

Another point to think about is that while a broker may be good at trading in one type of stock they may not be so good in another. Depending where your interests lie you may think it worthwhile opening a trading account with two different brokers enabling you to use the different strengths each broker offers.

Check out the brokers thoroughly. There are plenty of user comments on the Internet, which will help you to decide if a broker is suitable for your investment buying and selling. For example, if you wish to close a trading account with a broker and transfer your holdings some brokers will charge for this while others will be free.

Once you have opened your trading account you will need to place funds into the account. You can do this either by mailing a check in or sending funds by electronic transfer. These funds will be credited to your account and you will then be able to place your order to buy or sell stock by telephone or on-line or even in person if your broker has a local office.


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