How to buy your first stock

Investing in the stock market is not as simple as going into a store to make a purchase. Investing in stocks can be a great way to grow wealth over time, or gain additional income through dividends if invested heavily enough. However, there are risks with all stocks that investors should consider. Stocks in companies that are longtime market standbys and those that are unlikely to be the subject of any major negative news stories are referred to as blue-chip stocks. Even if they do face negative publicity, they are old, sturdy companies that can weather the storm.

Dangerous Moves for First-Time Investors

Why Zacks? Learn to Be a Better Investor. Forgot Password. E Trade is an online brokerage firm that was one of the pioneers of Internet-based investing. Fundamentally, the steps to making a first trade with E Trade are similar to those for any land-based financial institution. The main difference is that with E Trade you'll conduct your transactions online, rather than in person.

You can make your first trade with E Trade from anywhere with an Internet connection, and you won't have to speak with anyone or hear a sales pitch before or after your purchase. The cost of your trade will likely be lower than with a traditional brick-and-mortar firm as well. E Trade allows you to complete all of your account application forms online. Start by clicking the "Open an Account" button on the E Trade homepage. Choose the type of account you want to open, such as a regular investment account or an individual retirement account.

You'll have to provide the same information as if you were opening an account with a traditional firm, including your name and address, date of birth, Social Security number and relevant financial information, such as your employer's name and address. After you receive your account number, deposit money into your new E Trade account. You can fund your account with either a check, a wire transfer or the transfer of another account. E Trade also allows deposits via its "quick transfer" service, which is an ACH transfer of funds from another account, such as your checking account.

Before you pick a stock to buy, you should analyze which stocks are most likely to help you achieve your investment goals. Some stocks offer the potential for high returns but carry high risk, while others are less exciting but more reliable. Look at analyst reports, company earnings, market trends, the price and valuation of the stock and other factors to help you pick the right stock for your account. This step is particularly important if you are using your investment funds to buy only one stock.

You must download an app if you want to trade stocks on your mobile device. Enter the order type, which will be "buy" for your first stock trade.

Enter the number of shares in your order, along with the stock symbol you want to purchase. If you want to execute your order immediately, enter "market" under order type; otherwise, select the appropriate time or price modifier, such as "market on close" or "limit.

If you want your order to last longer than the current day's trading, enter a time modifier, such as "good for 60 days. After entering all relevant parameters, click "preview order," review the order, then click "place order" to make your first trade. John Csiszar has written thousands of articles on financial services based on his extensive experience in the industry. Csiszar earned a Certified Financial Planner designation and served for 18 years as an investment counselor before becoming a writing and editing contractor for various private clients.

In addition to his online work, he has published five educational books for young adults. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.

This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. These returns cover a period from and were examined and attested by Baker Tilly, an independent accounting firm. Visit performance for information about the performance numbers displayed above.

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But how do you actually buy those shares? Fortunately, the process of buying your first shares of stock online is relatively quick and easy. Here's. Investing in the stock market is not as simple as going into a store to make a purchase. Buying stocks involves setting up a brokerage account, adding funds, and.

Fast-Action Bonuses will disappear in You have been told you have to have a lot of money to start investing. But you have no clue how much you can really start with. You try just closing your eyes, hoping more money will appear in your savings account.

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How to Buy Stocks

So you've decided to invest in the stock market, and even have some ideas of what stocks you want to buy! But how do you actually buy those shares? Fortunately, the process of buying your first shares of stock online is relatively quick and easy. Here's a step-by-step guide to kick-start your investing journey. The dynamics of choosing the best online stock brokers have changed a bit.

How I Started Buying My First Stock

A Demat account ensures a simple, seamless, paperless, and genuine trading and investing. However, to maintain the genuineness of the process, you need to provide certain documents for opening a demat account. However, it is not necessary that your first stock be a high return investment. Once you get the experience and confidence, you will definitely invest in bigger and better avenues. However, your first investment should be towards learning. Every investor loses some money in his investment history. Do not shy away from investing due to the fear of losing some money. Never be afraid of small mistakes, learn from them, and keep investing better.

Buying your first stock is one of the most exciting things that you will ever do.

That is a very good question. Finding stocks to buy is easy, but finding GOOD stocks to buy is challenging. Everyone has their own opinion on which stocks to buy and how long to hold them.

Step 7: Buying Your First Stock

The basics of investing are quite simple in theory—buy low and sell high. In practice, however, you have to know what "low" and "high" really mean. What is "high" to the seller is considered "low" enough to the buyer in any transaction, so you can see how different conclusions can be drawn from the same information. Because of the relative nature of the market, it is important to know before jumping in. Understanding how they are calculated , where their major weaknesses lie, and where these metrics have generally been for a stock and its industry over time can help a new investor immensely. Most likely, you'll find that the market is much more complex than a few ratios can express, but learning those and testing them on a demo account can help lead you to the next level of study. And you have a lot more upside if a penny stock goes up by a dollar. Overall, remember to think about stocks in percentages and not whole dollar amounts. Even the best companies can have issues and see their stocks decline dramatically. This way, the lessons learned along the way are less costly but still valuable.

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Why Zacks? Learn to Be a Better Investor. Forgot Password. E Trade is an online brokerage firm that was one of the pioneers of Internet-based investing. Fundamentally, the steps to making a first trade with E Trade are similar to those for any land-based financial institution. The main difference is that with E Trade you'll conduct your transactions online, rather than in person. You can make your first trade with E Trade from anywhere with an Internet connection, and you won't have to speak with anyone or hear a sales pitch before or after your purchase. The cost of your trade will likely be lower than with a traditional brick-and-mortar firm as well. E Trade allows you to complete all of your account application forms online. Start by clicking the "Open an Account" button on the E Trade homepage.