This article I am making is about how to buy stocks for beginners and its five easy steps.
The question is how to buy stocks for beginners and one that I struggled with at the start of my interests in the stock market. There’s so much information out there to narrow down and focus on one area then of course there’s so many technical terms that get thrown around.
5 easy steps to start stock market:
- Buy the Intelligent Investor by Ben Graham because it’s one of the best stock market books ever written and laid the foundation for the idea of Value Investing. Once you’ve the read the book, read it again and ensure you that it may help you in deciding which stocks to go for.
- Sign up for a free account with Yahoo Finance because this tool is for researching companies and it also goes into great lengths about what each synonym means.
- Sign up for free stock broker account because you’ll be able to purchase shares. It has to be specific so I can’t recommend any specific one but ensure to do you’re research before handing over your bank account details or brokerage companies provide you with all kinds of stats and tools.
- Start with the lessons you have learned from the Intelligent Investor into action and identify companies in areas that you know about. If you don’t know anything about information technology, don’t look at tech stocks just stick to know what you know. When you feel you’ve found a good company then get the annual reports for the past few years. This can be requested through the companies own website.
- You’ve bought the book, got the Yahoo Finance Account, got your stock broker and identified and all that’s left is to buy some stocks.
It is advisable that you learn as much about the stocks for beginners market as you can before you actually put your cash on the line and there are many ways to for this. You can use training courses and read information on the stock market to see what your results would be if you were to invest. There are many software programs that track your success as you “pretend” to invest and this can be a good learning experience.
The number one thing you need to do before investing is learn because it is important to learn anything that you can about the stock market and implementing stock trading strategies in a right situations. Beginner stock trading often focuses on learning trading strategies and they will be of little help.