Investing in stocks and trading in markets has been an ongoing global trend towards financial freedom for most people. Add to it the ease of monitoring your portfolio, reviewing the current share prices, take Next PLC share price for example, and checking dividends earned all through online means.
If you are new to stock trading or planning to venture into it, read this article for easy and practical tips for entering the stock trading market.
#1: Study the stock market
Of course, before you invest, make sure you do your research first. Take ample time to study about stocks, stock trading, and stock markets. You do not need to be a financial analyst to even understand stock trading. There are a lot of credible online resources to search for information about investing. Once you get firsthand information about stocks, stock trading, and stock markets, you are now ready for the next tip.
#2: Open a brokerage account
The easiest way to buy stocks and start investing and trading is to open a brokerage account. Almost all brokerage firms allow new investors to open an account for free with little to no maintenance fee. Brokerage firms will ask you to submit pertinent documents to identify yourself as an investor. They’ll also require a startup investment amount with which to start building your portfolio.
You may ask your friends to recommend their own stockbrokers or inquire from your local banks and other financial institutions. The good thing about opening an account with a stockbroker is that you get to be relieved of the burden of processing papers with the regulatory bodies for stock markets as well as the corresponding taxes. Likewise, the process is quick as the application will only take in less than 2 weeks.
#3: Link a bank account
Once you have set up your account with a brokerage entity, you will be required to link it to your bank account. You have the option to open a new and separate bank account for all your stock trading transactions or link an existing one. The purpose of this is to ease up the transfer of funds each time you buy or sell orders of stocks in the stock market.
#4: Buy your first stock
Using the platform that will be given to you by your chosen stockbroker, buy your first stock. Remember the points you have studied in the first step. When buying a stock, you have to understand the financial strengths of the company you are investing in. Do not buy mindlessly. Every cent of your fund counts, so buy wisely and intelligently.
As a new investor starting out in the stock trading market, you should be prepared to read, read, and read! Plan out and be specific on your objectives when entering the stock market. Remember, the most viable way to earn wealth in stock investment and trading is proper research and well-informed decision-making. Don’t enter the industry empty-handed, unless you want to fail almost immediately.
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