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How to Invest in the Stock Market

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Use market research, broker advice and your own intuition when purchasing stocks.

When you invest money, such as by purchasing stock in the stock market, you are making a gamble that your investment will pay off. This means that you will get more money back should you sell your investment or otherwise wait for it to mature (in the case of annuities or dividends). To invest in the stock market, you must first purchase stocks. This requires research and a brokerage account with a broker.

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    Difficulty:
    Moderate

    Instructions

      • 1

        Study the stock market. Watch investment programs on television and borrow books about investing from the library. Read the "Wall Street Journal." Digest everything you can about stocks and investments so you can start researching stocks to buy.

      • 2

        Open a brokerage account. You can choose to use an investment firm and have an actual broker assigned to your account, which is typically more expensive, but you have the broker to call upon for tips and advice. You can also choose a less direct approach by opening an account with companies such as eTrade or Scottrade.

      • 3

        Research companies and their stocks. Spend a few days to a few weeks watching various companies and learning about the companies. Consult with your broker as necessary. Use the tools available from your brokerage account to make the research easier.

      • 4

        Inform your broker that you want to purchase stock from a specific company. Tell the broker how much stock you want. The broker will put in an offer and purchase the stock for you.

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    References

    • Photo Credit stock market analysis screenshot image by .shock from Fotolia.com

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