Buying Stocks for Beginners

Investing in the stock market and buying stocks can generate income and help you prepare for the future. Even beginner investors can learn how to buy stocks, without the help of a professional stock market broker.

Difficulty: Moderately Challenging

Instructions

1. Determine your investment goals. Are you looking for a long-term investment or will you need access to your money in a few months? This will determine how aggressive your investment plans will be. If you want a long-term investment, you'll want to buy stable, slow-growth stocks that have a greater growth rate in the long term. If you'll need access to your money soon, you'll need to be more aggressive in your investment strategy and buy higher risk stocks that have a greater chance of rapid growth.

2. Register an investment account with an online stock broker, such as Etrade or Sharebuilder. Many online stock brokers charge just a fraction of the fee that professional stock brokers charge. They also let you invest small amounts of money at a time.

3. Setup a direct deposit between your online investment account and your bank. This will allow you to transfer money quickly to your stock broker so that you may quickly buy or sell stocks.

4. Purchase stocks through your online stock account. Use your account's investment rating tools to sort stocks by their risk level and growth potential. If you're a short-term stock investor looking for quick growth, buy higher risk stocks. If you're in for the long haul, select low risk, slow growth stocks that are safer but will also take longer to turn a large profit.

Tips & Warnings

• Online stock brokers are cheaper than professional stock brokers, and let you invest small amounts of money.
• High risk stocks may grow faster, but they may also lose value quicker.

[bondgoddess]

on 11/17/2009 You can buy your first share of stock through a company like www.GiveAshare.com. No broker, no account. Just buy with a credit card.