How to Buy Stocks

Tips on buying stocks

1. Make sure you are well educated in the language and game of stock investment. There are plenty of books to read on the subject, as well as Web sites to peruse. Talk to businesspeople you know who might be able to lend you some helpful advice, or if you can afford it, consult a financial adviser. You will want to have a firm grasp on your investment goals before dipping your toe into the vast ocean of stocks and stock investment and sales.
2. The next big step to take is deciding on a broker. If you’re going to need a lot of guidance with making decisions on stock, go with a full-service brokerage. If someone brings you up to speed on what to know about stock buying and you feel confident about venturing out on your own, use an online brokerage firm (online firms save you money, as you do most of the buying and selling work yourself).
3. Fill out the application the brokerage firm provides (most have forms online for you to fill out) for opening an account. Be prepared to shell out a little bit of money to do this! Writing a check is usually the easiest way to open the account.
4. Once your account is open, you can begin making purchases on the stocks you desire. If you are unsure about a purchase, do not hesitate to contact your brokerage firm to ask questions.
5. Purchase stock conservatively. It’s highly recommended—especially in these topsy-turvy days—that you buy stock that’s going to perform well over time. Investigate what’s worth purchasing by using resources like CNN Money, “Forbes,” and “The Wall Street Journal” to make decisions. Also talk to people you know who already own stock, and find out where they’ve had successes as well as failures.

Caution

As with banks and other financial institutions, brokerage firms sometimes have an extraordinary amount of hidden fees when you open an account for stock buying and selling. Be absolutely sure you get a list from a potential brokerage firm that lists every one of their fees. Handling and electronic transfer fees are the most common ones.

Where to buy stocks

You'll find a number of good places online for not only buying stock, but also for learning more about stock and other potential investments.

NetStockDirect lets customers buy stock for as low as $4! This direct investing site offers a list of available stock plans, plus a stock finder and a primer on direct investing. Register for free to get started.

"Make your own financial decisions" with Ameritrade. Here you’ll be charged only $10.99 for all Internet equity trades, plus you’ll be given an assortment of educational tools to help you make smart decisions about stocks.

E Trade Financial allows you to buy stocks, bonds, mutual funds and much more. Get quotes, use stock research tools and learn how to begin planning your retirement.