How to Buy Stocks Online

The growth of Internet stockbrokers and instant access to the stock market makes it possible for any person to become an investor. Your desire to trade stocks online must be balanced with a sophisticated knowledge of daily market functions. Learn how to buy stocks online to expedite the investment process.

Instructions

Difficulty: Moderately Easy

1. Shop around for a reliable online stockbroker with the right tools for your particular investment plan. Look for international brokers if you have an interest in foreign markets or an inexpensive website if you just want to engage in day trading.
2. Deposit funds into a brokerage account to make an instant trade during the business day. Supply your broker or online account with enough money to fulfill your short-term investment needs.
3. Write down stock symbols of companies you deem worthwhile investments. Use online stock websites to review individual companies, write down the current share price and determine what type of trade you want to make.
4. Call the customer service department for your online broker if you encounter problems with the trading platform or completing transactions. Keep these representatives on the phone as long as you need help with trading to avoid wasted money and lost time.
5. Purchase stocks online using a simple market-value order. You can buy shares in your favorite company or a high performer based on the share value at present with the click of a button.
6. Utilize a limit order or a stop order to buy online shares on your terms. Place a limit on a certain stock, indicating to your brokerage the price and time necessary for you to buy or sell shares. A stop order protects you from lost value on a declining stock by selling your shares at a certain price below current value.
7. Investigate diversification of your portfolio through your online account to amplify potential earnings. Buy index funds and other long-term performers to keep in your portfolio for months or years. Venture into areas like Contracts for Difference (CFD) or new high-tech companies as you become more experienced.

Tips & Warnings

• Read company information every morning that you plan on making a trade for before-market news. Your online stockbroker, along with the company's website, should provide you with press releases detailing new products or projected cutbacks. Keep your stocks until you notice a series of trends that will lead to a steady decline.