Forgot your password?

How to Buy and Sell Stocks

By Edited Nov 13, 2013 0 0

One of the great misconceptions among financial newbies is that it takes a great deal of time to learn how to buy and sell and stocks. This is not true in most cases. However, buying and selling stocks is a skill and, like any skill, it will take time and dedication for one to truly master it. But the basics of stock investing can be learned in a short time period, in fact intelligent individuals may be able to learn enough that they are capable of buying and selling stocks in less than a day.

Who should buy and sell stocks?

One of the great rules of investing is that the investor should know themselves. This is particularly important if you intend to manage your own investments. Buying and selling stocks in the stock market will always involve a significant amount of risk. Investment positions are not insured and people can (and do) lose money. Therefore, if you are especially risk averse, for instance the thought of losing money in a stock investment might keep you up at night, you should probably not learn how to invest in the stock market. Also, if the only money that you have is money that you will need in the short term (in five years or less) then you probably not be putting your money to work in the stock market. Finally, if you do not own a home, you may want to consider whether any investment money might be better put to use a down payment.

However, if you feel that you could be successful by putting some of your money to work for you in the stock market then there are a few things that you need to know. The first thing you need to acquaint yourself with is the concept of the stock broker. Today most stock trades are conducted online at an online stock trading site such as scottrade.com or zecco.com. At these sites you can easily and securely manage your trades through an online account. In fact, thanks to the technological advances of the past twenty years, a person can now buy or sell stock for only a few dollars a transaction which is quite a difference from how it worked in years past.

So the first step if you want to get started in stocks is to open an account at an online brokerage. Once you have done so, you can fund your account and you will be ready to get started. The next step is to place an order to buy a stock that you think will go up. There are other more complicated stock transactions, such as short sales, that you can learn if you become an advanced investor, but at first you are just going to want to buy a stock that you think has the potential to appreciate in price.

How to find good stocks to buy?

There are no shortage of approaches that people use when deciding how to find a good stock to buy. In fact, this a subject that many books have been written about. It is a critically important part of learning how to make money with stocks because if the stocks you pick do not go up in price you will never make money. But, the good news is that over time stocks of companies that make profits tend to go up. Because of this if you buy one hundred random stocks on the New York Stock Exchange and hold them for ten years, you are very likely to have made money. So, do not the fear of losing money stop you from learning to invest.

Learning how to buy and sell stocks is something that anyone can learn in a few days. The hard part comes in deciding how to manage your investments for the long term to make the most money that you can make. But the sooner that you begin to educate yourself on stock market basics, the sooner you can begin to gain an appreciation of what makes the market move, and the sooner you can begin to make money in stocks for yourself.



Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Business & Money