How to Buy Stocks Today

You can buy stock today. Here is how.

Difficulty: Easy

Instructions

1. The first step is to choose the type of broker that you want and need. There are three basic choices- full service, discount, and online. The full service broker will give you guidance and provide advice and can be the best option for someone with little time for researching stock. They are the most expensive of the options, so you will need to perform better in order to make money when you use a full service broker. The Discount broker may provide recommendations but likely will not do much research for you. The benefit is that you will pay less but still have some guidance. This option is good for stock newbies. The third option is online which is the cheapest of the options but leaves you in the wind. You are likely on your own. The benefit of these is that they are cheap so lower returns are needed for you to turn a profit. Decide how much help you need and the lowest commission broker in this category.

2. Now you will likely be ready to place an order. When placing an order decide what type of order you want to place. If you are confident that the stock is going up and you want to get it at any price put in a market order. However, if it is a cyclic stock and you want to make sure you get it near the bottom you will likely want to put a limit order which directs them to only buy stock if the price is below a specific limit.

3. Now go to your broker and purchase the stock you researched and have confidence in. Once you purchase that stock you can give the broker a stop loss order. This is an order that states that if the stock goes below a specific price they are to sell it. It protects you by insuring that you will not lose more than a specific amount. This is good for stocks that are relatively stable by making sure if something goes south you get out quick. However, in a volatile market you may not want to do this because it could result in you selling due to a momentary plunge and thus loosing money.

Tips & Warnings

• If you have any questions, always consult with your appropriate financial adviser.

[sneedc]

on 12/22/2008 I agree, you have to leave it to the professionals; do your homework on the firm you choose. Companies that go belly up won't help you!