How to Buy Charter Stock

Charter Communications, Inc.—or CHTR as it is known on Wall Street—is a broadband communications company that is seeking to break away from the traditional cable company image by offering high-speed Internet service alongside telephone and cable television products. Learning how to buy Charter stock is easy. Knowing when to make the purchase, however, is a bit more complicated.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Discount brokerage account
• Internet access
• Printer
• Bank account

1. Set up an account with an online discount brokerage if you have not already done so. This is usually only recommended for those investors who know exactly when to buy and when to sell, and do not require the assistance of a licensed broker to help them in their investment endeavors. Even though there are a number of discount brokerages found on the Internet, Share Builder is perhaps the most famous.
2. Print out any disclosure documents related to your brokerage account and set up a file for them. It is crucial to know exactly what the fees and charges are and also the speed with which these transactions are conducted.
3. Research the trend that Charter stock has been taking over the last few months, or even years. Use the Internet to check out industry insiders and evaluators, such as the Motley Fool, for some unbiased advice.
4. Fund your trading account from your bank account. Depending on which online brokerage you have chosen, the funding minimums differ.
5. Follow your brokerage’s online instructions for making and executing a trade.
6. Consider setting up flags. This service allows your online account to send you email alerts if the Charter stock drops below a certain value and may make an attractive target for further investment purchases. Conversely, your account may email you when the stock goes above a certain dollar amount and may signal you that now is a good time to go ahead and sell your stock and reap the profits of the transaction.
7. Avoid day-to-day trading (day-trading). It is extremely expensive in the long run, and unless you know exactly how to do it profitably, you stand to lose a lot of money in the process.

Tips & Warnings

• Read industry news pertaining to the cable television and communications industry and Charter Communications, Inc. Knowing when the company’s next industry innovation will be introduced to the general public can coincide with a spike in the stock price, and buying it ahead of time is a wise move.
• Be careful when investing in Charter stock. Their debt load is enormous and may be sufficient to strangle their profits and your investment!