I know you heard me say it before but growing up where I’m from we only here about the stock market. We don’t ever get into the stock market. Knowing what I know now that’s pure ignorance. We lack knowledge on the subject. So, I want to make it as simple as possible for you. Let’s get into how to buy your first stock.
In previous blogs I broke down some apps you can use in (How to Get Started in Stocks). Then we broke down how to find what to invest in (Easy Way to Find Out What to Invest In). Finally coming up with a strategy (What’s Your Investment Strategy). So now let’s put everything together and buy a stock.
First you need to find a brokerage. I prefer online brokerage because they are easy. I can make purchases anywhere at any time with the push of a few buttons. This will give you a lot of flexibility. Make sure you research the company and their fees. All brokerages are not created equal. Once you have found one that you like sign up.
The next step is going to be to fund your account. You will need a bank account that you can link to your brokerage account. Some accounts require you to do a monthly amount some don’t. Some require a minimum down payment some don’t. Some you can setup automatic funding some you can’t. So, find the one that fits you. I prefer to add my own money and invest myself. This may change later.
After you have everything setup then you type in the ticker symbol and look at the stock. By now you should already have a few stocks in mind. You have already gone to Yahoo Finance or MSN finance and checked out their financials. Most brokerage companies have a research section that can give you more information. Some are free some are paid. I love to look at the quote unquote experts fair market value. Each company will have a different market value because they use different metrics.
Once you buy the stock, it’s yours. You can either hold onto it or you can sell it later. But it’s yours. Buying stocks is easy. Watching the market and not making mistakes is hard. I am 100% self-taught so I made a lot of mistakes I know a lot of you will make. I’ll go through those in another blog. But in this one I just want you to know how to buy a stock.
During the first period of a man's life the greatest danger is not to take the risk.