Things You'll Need:
- Computer
- Internet
- List of potential investment companies
- Ability to do math and read
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Step 1
Investing online can be done by most anyone with good reading and math skills. Not all companies will ever pay off big returns but there are a lot who grow over time and even with ups and downs the average growth will outweigh the low times if you are patient.
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Step 2
Go to an internet site, like MorningStar.com and read their investment classroom. Go through the steps of the classroom making sure you pass all the tests. Review if necessary. The sites will charge a buying fee, some as low as 4.00 per trade. Decide which you want to live with. Read all about their plan, how often you are required to invest or how high fees are. I spent a couple of weeks studying before buying anything at all. Read books you can go chapter by chapter or just read a section that you need to know more on. Buying blocks of stock for one buying fee is the best. Purchase say 20 shares of the company you want for the flat 4.00 fee no matter how many shares is bought at that time. Remember each different company will be a 4.00 charge or more depending on the investment company you chose.
The selling fee will be more than the buying. So you have to hold for a while, at least 2 years for tax purposes and time for growth. If you see a stock falling then you could consider selling, but only if it has no chance of recovery. I sold a stock that fell
lower, I needed some cash, but later realized it was a mistake since later it grew 3 times what I paid. This is just an example of the way it works. You decide what you can live with. The cash at the time I could have gotten elsewhere but thinking it would continue to fall I sold. Buying online makes it easy to watch your assets. Investing money you don't need at first is the best way to start and limit that amount till you learn and figure out how it all works. -
Step 3
Using a stock buying online plan with scheduled buys on certain days is helpful. You know what is coming out of the budget, and when. Buying stock in just one or two companies will give you a chance to see how it works. You will get more shares accumulated in that company over time. Read continually about the market, make sound decisions that doesn't put your money at risk or at least a low risk. The online companies have very simple systems to invest and you are the one in control of your money.
Comments
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MyJB said
on 2/6/2009 Good article. The steps were clear and easy to follow thanks.