Things You'll Need:
- Personal computer
- Internet access
-
Step 1
Open a stock brokerage account. Without a trading account with a stockbroker or bank, you can’t trade stocks. Research stock brokerage houses and banks that offer brokerage and financial services, and open an account when you find one you like. Follow your stockbroker’s instructions and fund your account. Most stockbrokers accept funding through wire transfers, bank-to-bank deposits, money orders and personal or business checks.
-
Step 2
Research various industries and become familiar with the leading stocks in the industries. Follow the industry trends and note the companies leading in these industries and those lagging. Determine why the leaders are on top and whether this is a fad or the trend is likely to continue. Evaluate the current political and economic conditions in the country. Note the industries benefiting from these conditions.
-
Step 3
Research the top five companies in the top five industries. Look in-depth into the finances of these leading companies. Note their profit trends in the last five reported quarters, their return on investments, or ROI, their balance sheets, the management styles, their debt-to-profit ratios, future earnings potential and the overall health of the companies. Look at the recent news about the companies. Write down the stock tickers or symbols of your favorite stocks.
-
Step 4
Go to your stockbroker’s trading platform and following their instructions to buy the stocks you have chosen. Follow the daily activities of your stocks through your stockbroker’s website or other stock monitoring websites.
-
Step 5
Sell your stocks when the values have appreciated. Go to your stockbroker’s trading platform and sell your stocks to lock in your profit. Your profit is the difference between the price you paid for the shares plus brokerage commissions and fees, and the sales price.
