Online Stock Trading: How to Buy Stocks

The stock market and the currency market is almost the same. They are both ways to invest and trade money. But they have different rules. The stock market is opens at 9.30 am and closes at 4.00 pm, and it is regulated. The foreign currency market is unregulated (there have been rumors that countries want to get it regulated) and it opens with the opening of Sydney stock market and closes when Wall streets closes. But the major difference is the leverage capability. In the stock market, you the leverage is 1:1 meaning that $1 move of a stock gives or take $1 out of you trading account. In forex, you can leverage 1:200. This means that for $1, you can make $200 for every pip change. That is a lot of leverage. If you are doing that, you should hope that the currency is going in your favor. The currency market is also know as stock market on steroids.

Since the foreign currency market and the stock market all involves trading, so if you know how to trade one, you can trade the other. You just have to read a little more about the other one rules. I first dabbled with stocks. If someone wants to learn how to buy stocks, I would tell the person to try to learn or read as much as possible. There are many resources of information for someone that is looking for how to buy stocks for beginners.

This is my own advice for beginners. “Look for a company that you know”. I got this idea from Warren Buffet (richest investor). He buys stocks of companies that he know about. By knowing about, I mean buy the stock of the company that you know that the business they are involved with is profitable and it would last. For instance, Warren Buffet owns shares in Coca-cola. He knows that Coca-cola will forever remain in business because people drink their products. Coca-cola can only collapse if the management team is bad. Without that, I am not seeing anything that would make people to stop drinking sodas.

If you want to buy stocks online, you can buy through a discount broker. Discount brokers are brokers that allow you to buy stocks online at a cheaper price, but they don’t offer any advice on buying stock i.e they don’t tell you what stock they think is good to buy. You have to do your home work. One way of doing your home work is to check for the earnings. Check if the quarterly and net earning is positive or negative. Also listen to the news for any sign that the company is in trouble. And the last tip is to follow your instinct. If you feel the company is bad, avoid it and find another one. There are many stocks that you can buy

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