How to Buy Stock – A Guide on How to Buy Stocks
How to Buy Stock – Now I will show you how to buy stocks. Buying stocks is very easy and you don’t need a lot of money to do so. I would recommend that you start with at least $1,000 but if you only have $300, you can easily buy stocks. In fact, you can buy a stock with as little as $50 but commissions will eat you alive.
First, in order to buy stocks, you need an online broker. Chosing an online broker is key because you want an easy to use platform and you want to pay low commissions. If you’re not going to do much stock trading, I recommend a Scottrade acount. If you think you will buy and sell stocks a lot, I would pick either Ameritrade or eTrade.
Next, you will want to add funds to your online stock account and once you have that taken care of, it’s time to go stock picking. You can check out my top long term stocks for ideas but you will want to do your research and learn about investing. After you pick stocks to buy, go to your order screen and type in how many shares you want to buy and the ticker symbol. Next, either select market order or limit order. Market orders execute instantly and limit orders allow you to buy stock at the price you chose. For example, if Noodles & Company (NDLS) is currently trading at $39 but I want to buy it at $37, I would use buy 100 shares of NDLS, select limit order, good until cancelled, and then click buy. Now my order will stay open until shares of NDLS hit $37. You may go in any time an change the order or simply cancel.
That is how you buy stock! Buying stocks is fun and if you carefully pick the right stock to buy, you can become very wealthy over time.