For many who have not been exposed to the process buying stocks is perceive a complex if not unattainable task.
The stock market is an excellent way to meet millionaire status, but it takes money to make money and it is risky. There are means to minimize risk but that will is left for another day and another article. So how do you buy stocks?
· Determine if you want a full service broker or a discount broker.
· Go to your favorite search engine and search for the service you are looking for.
· Make a list of services you are considering.
· Search for reviews, complaints, and recommendation for all services you have listed.
· Select the service you think meets you guidelines.
· Open an account with your selected service.
· Process your stock request.
Let’s take a closer look at all steps mentioned above individually. Full service versus discount broker? In simple terms a full service broker will do all the leg work for you. You don’t have to search the stock market charts for potential wins. You don’t have to learn the process of reading tables and graphs. You don’t have to learn stock trading terminology.
The down fall is that the service costs more and the stock broker does not have your best interest at hand. You also get a one-sided view of your options. The broker makes money regardless if you do or not since he/she receives payment per transaction process.
A discount broker is just that a discounted service. You make the selections. You have your best interest at heart. You control what is selected and when. The discount broker provides the vehicle for which you purchase the stocks you selected.
The down side, you do all the work of determining which stocks to select. You need to be able to analyze graphs and charts be up to date on market trends and keep your pulse on market activity. It is not as bad as it sounds you can subscribe to news letters in markets you are interested.
Next go to your favorite internet search engine and search for the service you are looking at. If you are undecided to go with full or discount broker, make two lists, one for the full service and one for discount broker. You will want to come up with five to seven services of each. When you complete the next step you will understand why you want a listing of services.
Now you have your list of stock brokers. Next you want to do searches for each service looking for good and bad reviews on each service. You have to take these reviews with a grain of salt and consider what source is writing them. It could be a disgruntled employee, a customer that did not get their way or maybe somebody that lost a substantial amount of money. You are looking for a pattern of positive and negative comments. Don’t forget to check the better business bureau.
You will be making selections based on your findings. Select the service you think will best fit your needs. You may find the service out of your price range. Maybe the service has too many restrictions. It is possible the broker does not provide a diverse choice of markets or not in the market you have interest in. Can transactions be done both by phone and internet or must the transaction be executed by one or the other?
Next you will want to open an account with the service you have selected. But before you do this you will want to contact them and visit with them. Get a feel if they will cater to your needs. Are these folks you can deal with, are they customer service oriented, how are you assured they have your best interest at hand? Keep in mind the broker service has a vested interest in your happiness, or they lose your business. In hindsight, if you are more problems to them than profit than they will careless if they lose you as a customer.
The rest is history. Based on the broker service you selected, full or discount service, you are now ready to invest into stocks. You now know how to buy stocks.