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Finance  »  Investing

How to Start Buying Stocks: A beginners Guide

By: Chad Blais

Date Added : October 3, 2011 Views : 594
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The internet has made life more comfortable. Aside from allowing you to gather information on anything, you can just sit at home and buy whatever you want including buying stock. Ideally, the internet has become a home to individuals who are into online business and can effectively make you richer from the many investing options available.

Buying stock online is easy for you in the sense that you can find what you need, compare various stock markets, get all information you need easily and be able to keep up with market trends without having to go through so many channels. These are some of the advantages you will get from online trading. Besides, you will feel quite comfortable just browsing the internet and it enables you to avoid going through many channels that include calling your stockbrokers and planning to meet them personally. Ultimately, the result of using this channel is detrimental to stock buying especially for beginners, given that busy phone lines and miscommunication ends up affecting traders.

Now you know a few advantages of online trading. So, what are the easy steps for buying stock for beginners?

Your first move should be doing your research. This way, you will find a site that will not frustrate you when trading. At the same time, the research will enable you to compare different kinds of services, investing options, account types, and even foreign trading options. A lot of legwork on your part will help you to avoid risks.

Once you have found an ideal trading site, you will need to open an online trading account. The process is electronic so you can complete it at your own convenience. Some of the things trading websites might require you to produce when completing your registration or opening the account include the following.

Your social security number, ID card, passport or driver’s license

Personal and contact information

Employment information

Financial employment like your bank accounts and investment accounts

Completing the application will require you to sign your application electronically. Once your online trading account is up and running, you must fund it. Different online brokers
will give you different options that you can use to fund your account. These include, wire transfers, linking the trading account with your bank account or even through a check.
The best tip is to go for an option that will be convenient in allowing cash transfers from one account to the other. With the availability of funds in your account, buying stock online will now be a possibility.

If you still need help on how to buy stock, your online broker will guide you through all the steps required. The process of buying stock online requires you to open the site’s order screen and place your order. Then, follow the stock market steps for stock buying as they differ from one site to another. Provided you know the quantity of shares you would like to buy, then you are good to go. Just make sure that all your purchases are done at the best prices.

If the stock trading system gives you a little headache or you still lack the confidence to know when the right time to buy stocks, the internet can provide you with the kind of information that will still help you know the right stock. Your stockbroker will also guide you in all processes. Keep in mind that no trading success comes without taking risks.

Kai Emerson is the author of this article on buying stock. Find more information, about how to buy stocks here

Article Source: How to Start Buying Stocks: A beginners Guide

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